KHC · 10-Q · 2026Q2 · Full report

Separation Transaction Pause

Kraft Heinz Co · 2026-08-05 · Importance 47 · Surprise 60

Kraft Heinz paused work on its planned tax-free spin-off into two independent publicly traded companies on February 11, 2026. Any restart would require Board approval, favorable U.S. tax opinions, and effective SEC filings, and the timing and completion of the transaction remain uncertain. The company incurred $10 million of separation costs in the second quarter and $66 million in the first six months of 2026, primarily for consulting, advisory, employee-related, and technology costs.

Key facts

• On February 11, 2026 the Board decided to pause work related to the Separation. source
• On September 2, 2025 the company announced a plan to separate into two independent publicly traded companies through a tax-free spin-off. source
• The company incurred $66 million of separation costs for the six months ended June 27, 2026, primarily related to consulting, advisory, employee-related, and technology costs. source
• The company incurred $10 million of separation costs for the three months ended June 27, 2026, primarily related to employee-related and technology costs. source
• Gross expenses included in separation costs were $10 million ($6 million after-tax) for the three months and $66 million ($51 million after-tax) for the six months ended June 27, 2026 and were recorded in SG&A. source