Kraft Heinz Wants Growth Back in 2027 — Innovation and Emerging Markets Are Key

Kraft Heinz Co. (NYSE:KHC) on Thursday outlined plans to return to top- and bottom-line growth in the second half of 2027, as it released its 2026 Investor Day materials detailing financial milestones through 2029.

For 2027, Kraft Heinz expects organic net sales to be relatively flat for the full year before returning to growth in the second half.

Adjusted operating income is expected to decline by a low-single-digit percentage from 2026, then return to growth in the second half.

The company expects free cash flow conversion to remain at least 100% and plans to provide formal 2027 guidance with its fourth-quarter earnings.

2027 Growth Drivers

Kraft Heinz expects 60% more innovation versus 2026, with innovation representing about 5% of U.S. retail net sales in 2027.

The company also projects low-double-digit organic net sales growth in Emerging Markets and low-single-digit growth for Away From Home in developed markets.

Those targets build on improving 2026 trends. Emerging Markets organic net sales were up 10% year to date, while North America organic net sales declined 2.4% year to date, an improvement from a 4.7% decline in 2025.

Investment and Productivity

Kraft Heinz invested more than $700 million in 2026 across marketing, products, research and development, pricing and people.

The company is targeting at least 4% cost-of-goods-sold productivity in 2027.

Kraft Heinz expects 2026 net leverage of roughly 3.2 times to 3.3 times and about $500 million of free cash flow after dividends in 2027.

Recent Earnings and 2026 Outlook

Earlier this month, Kraft Heinz reported third-quarter adjusted earnings of 53 cents per share, beating the 42-cent estimate, while revenue fell 2% to $6.115 billion, slightly above the $6.090 billion estimate.

The company raised its 2026 adjusted EPS outlook to $2.07-$2.13 from $2.03-$2.09 and now expects organic net sales to decline 0.5% to 1.25%. It maintained its forecast for a 16% to 18% decline in constant-currency adjusted operating income.

Management also flagged continued consumer and cost pressures on the Nov. 4 earnings call. CEO Steve Cahillane described consumers as being in a “fragile state” and said 2027 would likely bring “more pricing, not less pricing,” while CFO Andre Maciel said inflation could run slightly above 5% next year.

Path to 2029

Management expects 2028 to bring top-line growth and margin expansion.

By 2029, Kraft Heinz expects to operate a self-reinforcing cycle of profitable growth and deliver double-digit total shareholder return, supported by earnings growth and capital returned to shareholders.

“The opportunity ahead of us is significant, and we have the brands, scale and capabilities to capture it,” Cahillane said in Thursday’s announcement.

“With the right team, a business-unit-led operating model, and greater, consistent investment behind our brands, we are positioning Kraft Heinz to create long-term value for shareholders.”

KHC Price Action: Kraft Heinz shares were up 0.89% at $24.49 at the time of publication Thursday, according to Benzinga Pro data.

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