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Kraft Heinz (KHC, Financials) cut its full-year 2025 outlook Tuesday, pressured by softer consumer demand and rising costs tied to new U.S. tariffs.
The company now expects organic net sales to fall between 1.5% and 3.5%, compared with an earlier projection of flat to down 2.5%. Adjusted earnings per share are forecast between $2.51 and $2.67, lower than the prior range of $2.63 to $2.74.
First-quarter net sales came in at $6 billion, missing the $6.02 billion average analyst estimate, according to LSEG data.
CEO Carlos Abrams-Rivera called the environment volatile, pointing to inflation, tariffs, and shifting consumer behavior. Kraft Heinz said demand has slowed across staples like mac and cheese, condiments, and Lunchables, as budget-conscious shoppers trade down to cheaper options.
The updated guidance reflects broader industry challenges. PepsiCo (PEP, Financials) also recently trimmed its outlook, citing similar pressures.
Kraft Heinz will be under pressure to regain momentum as trade-driven inflation continues to strain household budgets.
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This article first appeared on GuruFocus.