Kraft Heinz Co

Back half acceleration & consumption trend improving (quarter-to-quarter cadence): Management indicated Q2 consumption was down ~2% (directionally ~2.5% mentioned), improving to ~down 1% in Q3 and they expect sequential improvement into Q4 (best consumption in the fourth quarter and momentum into 2027). They attributed noise to Easter/inventory effects and snowstorm disruptions, and noted market share performance improved recently—last ~4 weeks trending better, with ~1/3 of the incremental first $600M investment spent so far.

Margins & inflation outlook: “manageable” environment, productivity first, but timing of margin trough not worse: Steve said the company expects inflation in 2027 of ~4%–5% and is not fearful—they can offset via productivity as first defense while still targeting maintaining/strengthening margins over time. While the company previously referenced “margin trough” dynamics for ’26, their commentary about next year was framed as manageable, implying no new fear that ’26 won’t be the trough, but they strongly emphasized they can manage cost/inflation through execution.

Investment step-up to support share recovery and 2027 readiness (and what it implies): Kraft Heinz added an extra $100M incremental investment (on top of an already-announced $600M plan, totaling $700M), explicitly saying spend is broadly even between Q3 and Q4. Key framing: 2026 is the “base” year (no “wraparound” of incremental spending into next year—’26 is the base). They are spending more because they can from a position of strength, aiming for better share-led, volume-driven, sustainable growth into 2027.