Kraft Heinz shares plunged 7% Wednesday after the food giant abruptly paused its planned company split and issued weak 2026 guidance that missed analyst expectations. The maker of Heinz ketchup and Kraft macaroni and cheese reported fourth-quarter adjusted earnings of $0.67 per share, beating estimates, but revenue of $6.35 billion fell short of the $6.38 billion analysts expected.

CEO Steve Cahillane, who recently joined the company, announced a strategic shift away from the separation plan, citing the need to focus on returning to profitable growth. The company unveiled a $600 million investment in marketing, sales, and R&D to drive recovery, particularly in its U.S. business. However, the new outlook projected 2026 adjusted EPS of $1.98 to $2.10, well below the $2.49 analysts had expected.

For the full year, Kraft Heinz reported a net loss of $5.85 billion, compared to a $2.74 billion profit in 2024, primarily due to $9.3 billion in non-cash impairment losses. Organic sales declined 4.2% in the fourth quarter, worse than expected, and volume declines continued to plague the company with North American organic volume dropping 5.4%. The disappointing guidance and strategic pivot sent investors fleeing, marking a significant setback for the packaged food giant's turnaround efforts.