Kraft Heinz beats expectations for the 2nd quarter as home-cooking rises

Kraft Heinz exceeded quarterly earnings expectations due to strong demand for its pantry staples and condiments in the US, driven by consumers cooking more affordable meals at home amidst economic uncertainty. The company's steak and Worcestershire sauces also saw increased demand as people prioritized protein. Kraft Heinz is actively exploring strategic options for some of its brands, potentially including a spin-off of its grocery business. However, the company recorded a substantial $9.3 billion impairment charge due to a decline in its market capitalization and stock value. Kraft Heinz reaffirmed its annual targets and anticipates a 100 basis point cost impact from tariffs. The company is also focusing on healthier options and cleaner labels, removing food dyes and highlighting the absence of artificial flavors in its packaging. Despite a decline in quarterly volumes, the drop was less severe than in the previous quarter, although North America, its largest market, experienced a volume decrease. Kraft Heinz anticipates continued growth in its international business but not in the US market for the remainder of 2025. The company's net sales and adjusted profit surpassed analyst estimates. Analysts suggest that increased promotions and inflation may put pressure on margins in the current quarter.