The news: Kraft Heinz’s decision to press pause on its breakup and reinvest in its business enabled the company to stabilize—and even gain—share in Q1 2026.

• As of March 2026, 58% of the company’s business was gaining or holding share, compared with 21% in fiscal 2025, per a company presentation.
• However, that percentage was slightly lower in the US—54%—as strength among the Heinz, Capri Sun, and Philadelphia brands was offset by weaker demand for Oscar Mayer and Kraft Mac & Cheese.

The big picture: Kraft Heinz’s business showed signs of revitalization in Q1, with both quarterly sales and earnings per share (EPS) coming in ahead of market expectations.

• Net sales rose 0.8% YoY to $6.05 billion, beating forecasts for $5.89 billion.
• Adjusted EPS of 58 cents was well above expectations for 50 cents.

Increased investments in marketing, product quality, and innovation are helping fuel Kraft’s turnaround, but the company still has considerable hurdles. Q1 marked its 10th straight quarter of declining organic sales, and other challenges include reduced SNAP benefits, weak consumer sentiment, rising inflation, and the war in Iran.

• Kraft Heinz cited a larger-than-expected decline in transactions from SNAP households in Q1, which for now is being offset by higher spending from non-SNAP customers, but it still expects a 100 basis-point drag on full-year revenues.
• Rising plastic and energy costs due to the war in Iran could also weigh on the company’s bottom line in the second half, although it hopes to limit price increases given the existing pressures on consumers’ wallets.

Implications for retail: Kraft Heinz’s gains in Q1 show how important it is for CPGs to invest in marketing and innovation to stay relevant with customers. At the same time, the worsening cost-of-living crisis in the US and other markets will complicate companies’ efforts to win back market share from private labels.

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