KHC · 10-Q · 2026Q3 · Full report

Operating Expense Trends

Kraft Heinz Co · 2026-11-04 · Importance 29 · Surprise 22

Nine-month operating income was reduced by $522 million, in part by increased advertising expense, higher variable compensation and related tax expense, and separation costs. Adjusted Operating Income declined 15.2% to $3.0 billion, with increased advertising expenses and higher compensation among the primary drivers. Third-quarter Adjusted Operating Income decreased 15.2% to $939 million, reflecting increased research and development costs as well as higher compensation and people costs. The company also reported increased advertising expenses in Europe and Pacific Developed Markets and Emerging Markets.

Key facts

• Kraft Heinz expects the majority of its restructuring liability for severance and employee benefit costs at September 26, 2026, to be paid by the end of 2026. source
• Kraft Heinz’s restructuring-related lease obligations have cash impacts continuing for the duration of the lease terms, which expire in 2030. source
• The $522 million decline in Kraft Heinz operating income included increased advertising, higher variable compensation and related tax expense, manufacturing and logistics inflation, separation costs, and unfavorable volume/mix. source