Kraft Heinz pauses planned split as 2026 outlook weakens

Kraft Heinz has paused a planned corporate split and signalled that 2026 will be a weaker year as it shifts to reinvest in its U.S. business; the company expects lower sales and profit while funding about US$600 million in pricing, marketing and R&D.

Kraft Heinz has paused its planned corporate split and announced a weaker-than-expected outlook for 2026 while planning sizable reinvestment in its U.S. business. Management said the pause is intended to allow time to rebuild demand and margins before revisiting any separation. The company signalled lower sales and profit expectations and identified a roughly US$600 million investment in pricing, marketing and research and development for 2026. Leadership framed 2026 as a reinvestment year with the aim of improving performance in later periods. Key facts: - The planned split, previously targeted for September, is paused; management described the move as a pause rather than a cancellation. - The company forecasted weaker 2026 results and signalled lower sales and profit expectations. - Kraft Heinz announced about US$600 million in U.S. reinvestment focused on pricing, marketing and R&D, which is expected to weigh on near-term margins. - The article mentions Berkshire Hathaway, the largest shareholder (about 28%), filed that it could potentially sell its stake, a dynamic cited as likely influencing the decision. Summary: Management said the pause reflects a priority to return to profitable growth before pursuing a separation. The company will reinvest in its U.S. business during 2026 and expects that year to be down while those investments take effect. Management indicated a split could be reconsidered once fundamentals improve, with 2027 mentioned as a possible time to revisit the plan; the timeline remains undetermined.