Aug 5, 2026 earnings call — Stepping up investments to improve consumption and share
Management announced an additional $100 million in investments and said only 1/3 of the incremental first $600 million has been spent.
Revenue $6.3B (est $6.2B) · EPS $0.56 (est $0.54)
Key quotes
"we felt $600 million was the right number, a very good number and a strong number."
"I think just to complement, Peter, I think directionally, you are right in Q2, with about 2.5% decline on the consumption."
"Heinz is up 12% in the quarter in emerging markets, driven by distribution and consumption."
Analyst Q&A 11
Inflation and margin outlook for 2027
Q (Andrew Lazar · Barclays): Analyst asked whether the company's inflation outlook for next year implies this year might not be the margin trough, and how H2 investments affect H1 next year.
A: Management said the inflation outlook for next year is manageable and they can absolutely manage it. They said their first defense is productivity and they aim to maintain and strengthen margins over time.
"But as always, our first line of defense is productivity." — Steven Cahillane (CEO)
Consumption trends and sales cadence
Q (Peter Galbo · BofA): Analyst asked about consumption rates, the implied cadence from Q2 to Q3 and the expected exit rate for the year.
A: Management confirmed the analyst's read: consumption is improving and the business holding or gaining share is improving. They cited green shoots in Taste Elevation, Capri Sun and Mac & Cheese and said they hope to exit the year with the best consumption rates in Q4 and enter 2027 with momentum.
"And the amount of our business that is maintaining or holding share is also improving." — Steven Cahillane (CEO)
Market share progress and proof points
Q (Stephen Robert Powers · Deutsche Bank): Analyst asked for more detail on market share progression, why Q2 didn't show much progress vs Q1, and which pockets of the business will show traction as proof points.
A: Management said they had anticipated similar share trend in Q1 and Q2 partly due to a built-in 100 bps SNAP headwind, and they were able to protect share. They pointed to early encouraging signs from Capri Sun Hydrate, PowerMac & Cheese, Ore-Ida Shapes and desserts, and noted only 1/3 of the initial $600 million spend has been deployed so more is coming.
"So you should expect Mac & Cheese to continue to improve." — Andre Maciel (CFO)
Meats and meals improvement timing
Q (Scott Marks · Jefferies): Analyst asked how management is approaching targeted actions in meats and meals and timing for improvements beyond lapping declines.
A: Management said the main issue is Oscar Mayer Deli Fresh, where new packaging is now almost completely in market and early signs are encouraging. They said bacon and hotdogs are performing better, and Lunchables and Mac & Cheese innovations are showing good early results.
"One of the biggest issues that we've had are with our Oscar Mayer brand and specifically in Deli Fresh." — Steven Cahillane (CEO)
Which investments are working best
Q (Michael Lavery · Piper Sandler): Analyst asked which product, price or marketing investments are running ahead of expectations, how transferable the effects are across brands, and how that informs the extra $100 million.
A: Management said the investments are working across the board, with condiments a standout where Heinz is back to growth and strong consumption growth. They also noted strong performance in emerging markets and Away From Home, and said the investment program is paying off.
"Heinz is back to growth as it should be, strong growth -- strong consumption growth, which is terrific." — Steven Cahillane (CEO)
Timing and size of investments
Q (Thomas Palmer · JPMorgan): Analyst asked how the stepped-up spend will be split between Q3 and Q4 and whether 4Q run rate is a reasonable starting point for 2027 investment levels.
A: Management said Q3 and Q4 spending should be broadly even and that 2026 should be viewed as the base year for investment levels. They emphasized they do not expect any wraparound of investments into next year and that the additional $100 million strengthens their confidence for 2027.
"And just to be crystal clear, like we do not expect any wraparound of investments into next year." — Andre Maciel (CFO)
Why certain brands get more spend
Q (David Palmer · Evercore): Analyst asked if the best ROI is on the highlighted brands (Capri Sun, Heinz, Ore-Ida, Mac & Cheese, Philly), why that is, and how readiness and innovation factor in.
A: Management said the answer is a combination: those highlighted categories have strong brand equity and typically high gross margins. They also said Taste Elevation was the first area where they stepped up investments and that earlier starts explain why those plans are now showing stronger results.
"Those categories that were highlighted, they do have very strong brand equity." — Andre Maciel (CFO)
Sales vs share focus; portfolio moves
Q (Christopher Carey · Wells Fargo): Analyst asked whether the company would lean in with more investment if organic sales trail and whether better momentum enables portfolio reshaping.
A: Management said they have increasing confidence they're doing the right things to drive better share and organic sales growth, and the extra $100 million bolsters that confidence. They also said they will operate from a position of momentum and strength and will consider portfolio moves that add shareowner value when the right opportunities arise.
"I feel very confident about that, that we're doing the right things." — Steven Cahillane (CEO)
Guidance range confidence and drivers
Q (Robert Moskow · TD Cowen): Analyst asked what distinguishes the low end and high end of guidance and whether management is more confident in the high end given their tone about accelerating sales.
A: Management said they are confident and stepping up investments because of early traction, and they cited strong emerging markets and Away From Home momentum. They acknowledged at the midpoint the second half would look weaker than the first half but noted Q1 had about 0.7 percentage points snowstorm benefit and Q2 had 0.8% shipment phasing into Q3, and that normalizing those shows underlying improvement of about 70-80 bps in the second half.
"So first, on the tone, yes, I think you are hearing confidence, and I think we are stepping up investments because we are seeing early signs of traction." — Andre Maciel (CFO)
Pricing actions and retailer response
Q (Leah Jordan · Goldman Sachs): Analyst asked where pricing investments have been made, how price gaps look, competitive response, and how they plan to maintain gaps as retailers step up private label pricing.
A: Management said their pricing actions have been surgical: not just base price changes but preserving distribution, opening price points, and adjusting package architecture to keep appropriate gaps to private label and competitors. They said the incremental $100 million will be almost entirely in marketing because they feel they have done the right work on price.
"The incremental $100 million that we announced this morning is going to be almost entirely in marketing because we feel like we've done the right thing on price." — Steven Cahillane (CEO)
Disney partnership scope and timing
Q (Robert Dickerson · U.S. Bancorp BTIG): Analyst asked about the magnitude of the Disney partnership and whether co-branding could appear as soon as Q4 or in 2027 and where it might appear.
A: Management said they are very excited about the Disney partnership and listed many possible activations: co-branding, merchandising, licensing, and activations in Disney parks, cruise lines and hotels. They also said they are excited about the NFL partnership and will use both properties to drive consumer emotional connections and retailer engagement.
"So we're very excited about the Disney partnership." — Steven Cahillane (CEO)