KHC · 8-K · 20260805PR000052

Gross Margin Drivers

Kraft Heinz Co · 2026-08-05 · Importance 43 · Surprise 32 · No source text

Second-quarter gross profit declined 7.1% year over year to $2,028 million, and GAAP gross profit margin decreased 200 basis points to 32.4%. Adjusted Gross Profit was $2,136 million, down from $2,168 million, while Adjusted Gross Profit Margin remained flat at 34.1%. Higher pricing and efficiency initiatives were offset by unfavorable volume/mix, inflationary manufacturing and logistics costs, and increased advertising expenses. Full-year 2026 Adjusted Gross Profit Margin guidance was revised to a decline of 10 to 50 basis points versus 2025, compared with the prior outlook of a 25-to-75-basis-point decline.

Key facts

• The Company contemplates Adjusted Gross Profit Margin expected to be down 10 basis points to down 50 basis points versus prior year for 2026 source
• Adjusted Gross Profit Margin current outlook (2026): (50)bps to (10)bps (prior was (75)bps to (25)bps) source
• Gross profit for the three months ended June 27, 2026: $2,028 million, down 7.1% versus prior year source
• Adjusted Gross Profit for the three months ended June 27, 2026: $2,136 million source
• Gross profit margin decreased 200 basis points to 32.4% source
• Adjusted Gross Profit Margin for the quarter was flat at 34.1% source

Impact estimates