The Kraft Heinz Company

The transcript does not include reported Q3 revenue, EPS, or gross margin figures. Management said North America and global top line performance was better than expected, that Q3 year-to-date about 70% of trade and marketing investments had been spent, and that the company expects to spend the full $700 million in P&L investment this year. On 2027, Andre Maciel said inflation was previously expected at 4% to 5% but is now expected to be slightly above 5%, with more pressure from packaging, soybean oil, and some dairy reversal; management also said there will likely be some price action across regions to protect gross margins.

Steve Cahillane framed the quarter around portfolio simplification and investment-led growth. He said the coffee divestiture helps simplify and strengthen the portfolio, and repeatedly emphasized that the company is learning where recent spending works best, with stronger returns expected after spring resets next year. His tone was constructive but candid: he acknowledged softer categories, uneven share progress, and the need for more pricing in 2027 because inflation is rising.

Andre Maciel focused on spending pace, inflation, and how the company is managing the P&L. He said about 70% of the year’s trade and marketing investments were spent by the end of Q3, around 80% of planned people hires had been completed, and the company will spend the full $700 million this year. He also said inflation for next year is now expected to be slightly above 5%, versus the prior 4% to 5% range, and that temporary margin pressure could come from the lag between rising inflation and price actions.

Analysts pressed on why U.S. retail share gains have not yet improved more, especially after the investment plan was announced. Management said progress is non-linear, categories are mixed, and some bets—like Kraft Mac & Cheese PowerMac, Capri Sun Hydrate, and KD Ramen in Canada—are working, while Philly cream cheese has been weaker because pricing did not work as intended and the category is under pressure. Questions also focused on inflation, pricing, and margins; management answered that 2027 will likely require more price across the market, while productivity remains the first line of defense. On portfolio strategy, management said the coffee sale fits the goal of a more growth-oriented portfolio, while Oscar Mayer meats still needs work but is fixable.