Kraft Heinz expects organic net sales to return to growth in the second half of 2027, while adjusted operating income also returns to growth after a low-single-digit decline for the year.

At its 2026 Investor Day on Thursday, the company said full-year 2027 organic net sales should remain "relatively flat." Kraft Heinz will provide formal 2027 guidance on its fourth-quarter earnings call, while the investor event webcast begins at 10:30 a.m. ET.

What does Kraft Heinz expect for 2027?

• Organic net sales will remain relatively flat for 2027, with growth returning in the second half.
• Adjusted operating income will decline by a low single-digit percentage from 2026, then return to growth in the second half.
• Free cash flow conversion will remain at least 100%.

The profile leaves full-year 2027 sales flat, adjusted operating income below 2026 and free-cash-flow conversion at or above 100%. The company has not yet issued formal guidance, so Thursday's figures represent the initial contours of its outlook.

How is Kraft Heinz funding the turnaround?

Chief Executive Officer Steve Cahillane has led the turnaround since taking the helm in January, according to Bloomberg. Bloomberg reported that Cahillane had shelved the proposed breakup. He directed $700 million toward marketing, pricing, additional staff and research and development.

The company breaks the commitment down as follows:

• $325 million for marketing.
• $250 million for pricing.
• $75 million for new employees.
• $50 million for products and packaging.

Marketing and pricing together account for $575 million, making them the core of the investment. Kraft Heinz says a business-unit-led operating model will support greater, more consistent spending behind its brands.

CEO Steve Cahillane said: "With the right team, a business-unit-led operating model, and greater, consistent investment behind our brands, we are positioning Kraft Heinz to create long-term value for shareholders." The broader strategy centers on volume-led profitable growth.

What milestones run through 2029?

• In 2026, Kraft Heinz expects to narrow market-share losses, recover the top line from 2025 levels and improve volume trends across all regions.
• In 2028, the company expects consistent top-line growth and margin expansion.
• By 2029, Kraft Heinz expects to deliver a double-digit total shareholder return, combining earnings growth with capital returned to shareholders in a balanced contribution.

The 2026 milestones sit ahead of a 2027 transition year in which sales remain flat and operating income contracts before both measures grow in the second half. The 2028 goal then extends that improvement, while the 2029 return target adds capital distribution to earnings growth.

The company said worldwide market share rose 30 basis points, or 0.3 percentage point, in 2026 relative to 2025. Bloomberg reported that sales of Kraft Heinz's macaroni and cheese line are growing again.

New launches should represent 5% of US retail net sales in 2027, up from 3% in 2026. Cahillane told analysts last week that Kraft Heinz is likely to raise prices in 2027 as inflation persists, according to Bloomberg. That pricing expectation sits alongside higher brand investment and a wider product pipeline.

How does execution compare with current results?

Kraft Heinz raised the low end of its 2026 organic sales forecast last week when it reported third-quarter results. The company now expects a full-year organic net sales decline of 0.5% to 1.25%, improved from its earlier forecast of a 0.5% to 2% decline.

Third-quarter performance remained negative across the main developed markets. Net sales fell 2.0% to $6.1 billion, and organic net sales fell 1.1%.

• North America net sales fell 3.4%.
• Europe and Pacific Developed Markets net sales fell 5.6%.
• Emerging Markets net sales rose 13.8%.

Emerging Markets growth contrasted with declines in North America and Europe and Pacific Developed Markets. Management's volume-led strategy puts brand investment, new products and pricing behind a broader recovery in those two declining regions. Alongside that recovery, Kraft Heinz expects at least 100% free cash flow conversion in 2027; its 2029 target pairs earnings growth with capital returns to shareholders.