Packaged food giant Kraft Heinz (KHC) has halted plans to split the company in two.
The company’s Chief Executive Officer (CEO) Steve Cahillane made the announcement during the company’s latest earnings call with analysts and media.
Kraft Heinz’s popular products include Heinz Ketchup, Kraft Mac & Cheese, and Philadelphia Cream Cheese.
The company first announced plans to split into two separate entities – one focused on groceries and the other on sauces and spreads – last September.
The split was announced after Kraft Heinz failed to achieve the growth expected when Kraft and Heinz merged in a blockbuster $46 billion U.S. deal a decade ago.
The company expected to complete the split by the end of 2026. Cahillane, an industry veteran, began his tenure as CEO this January and was hired to oversee the business separation.
Like other packaged food companies, Kraft Heinz has struggled with weak demand for its condiments and name brand food staples as consumers seek out cheaper grocery options.
Management didn’t say why the split is being halted or if it will resume again. CEO Cahillane said that the company’s issues are “fixable and within our control.”
However, Kraft Heinz also announced that it plans to invest $600 million U.S. to fuel a turnaround in its U.S. business, suggesting the company is going in a new direction.
The company said that it plans to spend the money on marketing, sales, and research and development of new products.
As for its financial results, Kraft Heinz’s earnings beat Wall Street’s forecast, but its revenue fell short of projections.
The company forecast 2026 organic net sales to fall between 1.5% and 3.5%.
KHC stock has declined 30% over the last five years to trade at $24.90 U.S. per share.
