Key financial results
- Financial results: Management did not give detailed quarterly revenue or EPS figures on the call.
Business segment results
- North America: U.S. Away from Home and Canada both grew low single digits in the quarter.
First give credit inside North America to U.S. Away from Home in Canada. They both grew low single digit in the butter again.
- U.S. retail: U.S. retail came in better than planned despite pressure from retailer inventories.
On U.S. retail, to your point, it did come a little better despite having probably more pressure from retailer inventory than we expected.
- Philadelphia cream cheese: Philadelphia cream cheese experienced pressure as the category softened and pricing moves proved deflationary.
1 of the not as well as expected is clearly in Philly, cream cheese.
- Market share: Management stated that the percentage of revenue gaining share improved slightly from roughly 25% in the first half to 28% in the quarter.
In the quarter, our percentage of revenue gaining share has improved a little bit. It went from roughly 25% in the first half to 28%.
Capital allocation
- Investments: Management confirmed plans to invest $700 million in the P&L this year to turn around the business.
So we will spend the $700 million this year, as we have said before.
- Spend timing: By the end of the third quarter, approximately 70% of planned trade and marketing investments had been spent.
So we have by end of Q3, spent roughly 70% of the trade and the market investments planned for the year.
Industry trends and dynamics
- Category trends: The category softened up, softening mix-adjusted portfolio performance by about 50 basis points.
The category has indeed softened up the way you're expecting. So it was about in our portfolio, mix adjusted about 50 bps softer.
- Inflation: Input cost inflation is expected to be slightly above 5% next year, driven by packaging, certain commodities, and the expected reversal of dairy favorability.
Competitive landscape
- Retailer relations: Constructive dialogues are underway with retail partners regarding shelf resets and revitalization.
We've got very constructive dialogues going on with our retail partners.
Macroeconomic environment
- Consumer environment: The consumer remains in a fragile state, prompting management to take as little price increase as possible.
the consumer is in a fragile state, and we want to take as low price as possible in order to meet the consumers where they are.
Growth opportunities and strategies
- Away from home: Away from home growth has been driven by share gains and partnerships with the NFL and Disney.
- Productivity: Productivity is cited as the first line of defense against rising inflation.
Our first-line defense is always productivity, and we're stepping up that productivity.
- Innovation: An improved innovation pipeline is scheduled for spring resets next year.
You'll see that really start to get kind of its next boost, if you like, in the first quarter, spring of next year with the resets.
Financial guidance and outlook
- Guidance: Management did not provide detailed numeric guidance figures for 2027 on the call.
Portfolio divestitures
- Coffee divestiture: A definitive agreement was announced to divest the North American coffee business to One Rock, with Kraft Heinz retaining a 30% noncontrolling equity stake.
Q3 FY2026 results
| Metric | Result | Change |
|---|---|---|
| Marketing investments year-to-date | 6.1% | Not stated |
| North America away from home and Canada growth | low single digit | Not stated |
| Percentage of revenue gaining share in U.S. retail | 28% | improved from roughly 25% in the first half |
How management sounded
Cautious (+10 on our -100 to +100 scale). Management acknowledged volume and category pressures as well as higher expected inflation, while expressing confidence in their investments, productivity, and upcoming spring reset plans. Management sounded more upbeat than on 2% of the 302 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Read the analyst Q&A summary and guidance and outlook for this call.
What to watch before the next call
- The timing and execution of the North American coffee business divestiture to One Rock.
- Spring retail shelf resets and their impact on total distribution points and market share.
- The trajectory of input cost inflation and potential pricing actions across regions in 2027.
Earlier calls
- Q2 2026 (Aug 5, 2026), tone Balanced: Kraft Heinz reported second quarter 2026 results with improving consumption trends and incremental investments supporting momentum.
