Kraft Heinz Co (NASDAQ:KHC) stock fell 1.14% (As on February 12, 11:27:44 AM UTC-4, Source: Google Finance) after the company said that it’s pausing its plans to split into two companies and issued disappointing 2026 guidance that fell short of analyst expectations. Steve Cahillane, a former Kellogg Co. chief who became CEO of Kraft Heinz on Jan. 1, said he wants to ensure that all of the company’s resources are focused on profitable growth. Kraft Heinz announced in September it was splitting into two companies a decade after a merger of the brands created one of the biggest food manufacturers on the planet. One of the companies would include stronger-selling brands such as Heinz, Philadelphia cream cheese and Kraft Mac & Cheese. The other would include slower-selling brands like Maxwell House, Oscar Mayer, Kraft Singles and Lunchables. At the time, Kraft Heinz said it expected the split to be finalised in the second half of this year. The company hired Cahillane, who presided over a similar breakup at Kellogg Co. in 2023, in December.

Kraft Heinz said its net sales fell 3% to $6.35 billion in the October-December period. That was lower than the $6.37 billion Wall Street forecast, according to analysts polled by FactSet. Sales fell 5% in North America but rose internationally. Kraft Heinz’s net income fell 69.5% to $651 million in the fourth quarter. Adjusted for one-time items, the company earned 67 cents per share, which beat analysts’ forecast of 61 cents. Organic sales declined 4.2% in the quarter, worse than the 3.72% drop analysts had anticipated. For the full year 2025, Kraft Heinz reported a net loss of $5.85 billion, compared to a profit of $2.74 billion in 2024, primarily due to non-cash impairment losses of $9.3 billion. Adjusted EPS for 2025 was $2.60, down 15% from $3.06 in the previous year. Volume declines continued to plague the company, with North America organic volume dropping 5.4% in the fourth quarter. The company cited weakness across several categories including cold cuts, coffee, frozen meals, bacon, and condiments. In April, Kraft Heinz lowered its full-year sales and earnings guidance, citing weaker customer spending in the US and the impact of President Donald Trump’s tariffs.

The company’s 2026 outlook disappointed investors, projecting adjusted EPS of $1.98 to $2.10, well below the $2.49 analysts had expected. Kraft Heinz also forecast organic net sales to decline between 1.5% and 3.5%, with adjusted operating profit expected to drop 14% to 18%.