Kraft Heinz Company (NASDAQ: KHC), one of the world’s largest food and beverage corporations, has revised its annual sales and profit outlook downward, citing persistent weakness in consumer demand for its premium snacks and pantry staples. The company’s updated forecast highlights the challenges facing packaged food manufacturers as inflation and economic uncertainty continue to reshape consumer spending habits.

Shares of Kraft Heinz slipped approximately 1% in premarket trading following the announcement, reflecting investor concerns about slowing growth in both domestic and international markets. The company, which has announced plans to split into two distinct business units—one focused on grocery products and the other on sauces and spreads—appears to be facing headwinds as shoppers increasingly seek budget-friendly alternatives.

Revised Sales Forecast

Kraft Heinz now anticipates its 2025 organic net sales will decline between 3% and 3.5%, a downward revision from its previous guidance of a 1.5% to 3.5% decline. The revised forecast factors in slower growth in emerging markets, including notable decreases in regions like Indonesia, as well as ongoing challenges in the U.S. retail sector.

The company noted that cost-conscious consumers are increasingly turning to cheaper store-brand products as inflationary pressures persist, impacting demand for branded packaged foods. This trend has weighed heavily on Kraft Heinz’s sales performance in recent quarters, prompting the company to adopt a more conservative outlook.

Adjusted Profit Outlook

Kraft Heinz also updated its annual adjusted earnings per share (EPS) guidance to a range of $2.50 to $2.57, slightly below the prior forecast of $2.51 to $2.67. The company reported a net sales decline of 2.3% to $6.24 billion for the third quarter ended September 27, 2025, narrowly missing analysts’ estimates of $6.26 billion, according to LSEG data.

The slowdown highlights broader challenges in the packaged food industry, where economic uncertainty and inflation have prompted consumers to reconsider discretionary spending on higher-priced food products.

Strategic Response

Kraft Heinz has previously indicated that it plans to restructure the business into two separate units to streamline operations and focus on growth areas, including grocery essentials and condiments. Analysts suggest that this strategic move may help the company better navigate the changing market dynamics, though near-term pressure on earnings is expected to persist.

The company continues to monitor consumer trends, supply chain constraints, and global economic conditions, aiming to balance profitability with competitive pricing in key markets.