From Yahoo Finance: 2025-04-29 15:23:00

Kraft Heinz lowers full-year sales and earnings guidance due to weak U.S. consumer spending and President Trump’s tariffs. Other major food companies, like PepsiCo and Coca-Cola, are also feeling the impact. Kraft Heinz faces challenges balancing low prices to prevent consumer migration to store brands and rising expenses from tariffs.

The company is exploring various options to mitigate the impact of tariffs, such as shifting suppliers and reformulating products. Kraft Heinz built up inventory earlier in the year to cushion tariff impacts. North American revenue fell 7% to $4.5 billion, with U.S. weakness offsetting gains in Canada.

Kraft Heinz expects operating income to decline up to 10% this year, a worse outlook than the previously anticipated 5% drop. The company plans to offer promotions, step up marketing, and introduce value options like an 11-ounce Kraft Mac & Cheese box. Federal regulations on artificial colors may also impact the company.

CEO Carlos Abrams-Rivera highlighted Kraft Mac & Cheese’s removal of artificial flavors and colors since 2016. However, some products, like Kool-Aid, still contain artificial colors. Kraft Heinz reported a 6% decrease in net revenue to $5.9 billion in the January-March period, falling short of Wall Street expectations.

Kraft Heinz’s shares remained flat in afternoon trading Tuesday, reflecting investor concerns over the company’s lowered guidance and challenges ahead.



Read more at Yahoo Finance: Kraft Heinz lowers sales outlook for the year, weighed down by consumer uncertainty and tariffs