Kraft Heinz sees flat 2027 organic sales and lower operating profit
At its Investor Day, Kraft Heinz gave initial 2027 expectations: flat organic net sales, adjusted operating income down low single digits and free cash flow conversion of at least 100%.
Key takeaways
- Kraft Heinz (KHC) gave initial 2027 expectations at its Investor Day on Nov. 12, expecting flat organic net sales, adjusted operating income down low single digits and free cash flow conversion of at least 100%. Formal 2027 guidance will come with its fourth-quarter earnings call.
Kraft Heinz (KHC) expects organic net sales to be relatively flat in 2027, with adjusted operating income down low single digits from 2026, in an initial outlook set at its Investor Day on Nov. 12.
Shares were little changed at 9:38 a.m. ET, from a $24.27 close.
Free cash flow conversion is expected to remain at least 100%. These non-GAAP measures precede formal 2027 guidance on the fourth-quarter earnings call.
Sales and adjusted operating income are both expected to return to growth in the second half of 2027.
For 2026, the company is narrowing market share losses and recovering its top line from 2025 levels. For 2028, it expects consistent top-line growth and margin expansion. By 2029, it expects a self-reinforcing cycle of profitable growth and double-digit total shareholder return.
The strategy rests on five steps: building superior products and brands, delivering relevant and accretive innovation, scaling go-to-market capabilities, managing a growth-focused portfolio, and unlocking efficiencies to fuel reinvestment.