Kraft Heinz forecasts about $950 million in 2026 capital spending

Feb 12 (Reuters) - Kraft Heinz ‌said on ​Thursday ​it expects annual capital spending of about $950 million in 2026, higher than last year, a day ‌after the packaged-foods maker hit pause on its ⁠plans to split and announced new investments to boost its business.

The company ‌on Wednesday halted its ‌efforts to split into two entities, a move CEO Steve Cahillane said was necessary due to deteriorating conditions in ​the food industry. The pause is expected to save the company $300 million in costs in 2026.

But Callihane did ⁠not rule out the possibility of a split in the future, even as ​he said the challenges Kraft Heinz was facing were "fixable and within our control."

The company will now ​focus on marketing and research with ‌a $600 million investment to drive recovery in its U.S. business, hit by tepid demand.

Last September, ⁠Kraft Heinz announced separation plans, proposing to split into two companies, one focused on groceries and the other on sauces and ⁠spreads, after failing to achieve the kind of growth expected when ​the company was formed a decade ago under a merger.

Shares of the company were down about 1% in premarket trading.

Kraft Heinz forecast fiscal ‌2026 capital expenditure of about $950 million, compared with the $801 million a year earlier.

The company said ‌it expects to cut about 60 positions as of December ⁠27, primarily outside of ‌the U.S. and Canada. ​It eliminated about 600 jobs last year.

(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Shinjini ‌Ganguli)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Honda and Nissan to jointly develop vehicle sofware, Nikkei reports
• FDA approves Takeda's Mimrylo for rare blood cancer polycythemia vera
• Boat with around 270 people on board capsizes off North Cyprus; one dead