Kraft Heinz CoKHC
Kraft Heinz Co Segments Disclosure
Segment Reporting
At December 27, 2025, long-lived assets by geography excluded amounts classified as held for sale.
We manage our operating results through four operating segments: North America, Europe and Pacific Developed Markets (“EPDM” or “International Developed Markets”), West and East Emerging Markets (“WEEM”), and Asia Emerging Markets (“AEM”). We have two reportable segments defined by geographic region: North America and International Developed Markets. Our remaining operating segments, consisting of WEEM and AEM, are combined and disclosed as Emerging Markets.
Our chief operating decision maker (“CODM”) is our Chief Executive Officer. Our CODM evaluates segment performance based on several factors, including net sales and Segment Adjusted Operating Income. Segment Adjusted Operating Income is defined as operating income/(loss) excluding, when they occur, the impacts of restructuring activities, deal costs, separation costs, unrealized gains/(losses) on commodity hedges (the unrealized gains and losses are recorded in general corporate expenses until realized; once realized, the gains and losses are recorded in the applicable segment’s operating results), impairment losses, and certain non-ordinary course legal and regulatory matters. Segment Adjusted Operating Income is a financial measure that assists our CODM in comparing our performance on a consistent basis by removing the impact of certain items that our CODM believes do not directly reflect our underlying operations. Our CODM also considers monthly budget-to-actual variances and year-over-year performance of Segment Adjusted Operating Income when making decisions about allocating resources to our segments. Our CODM does not use assets by segment to evaluate performance or allocate resources. Therefore, we do not disclose assets by segment. Carlos Abrams-Rivera served as our Chief Executive Officer during our fiscal year 2025. Subsequent to our fiscal year ended December 27, 2025, the Company appointed Steve Cahillane as Chief Executive Officer effective January 1, 2026.
Emerging Markets represents the aggregation of our WEEM and AEM operating segments. Adjusted Operating Income for WEEM and AEM is the measure reported to our chief operating decision maker for purposes of making decisions about allocating resources to these operating segments and assessing their performance.
Net sales by segment were (in millions):
| December 27, 2025 | December 28, 2024 | December 30, 2023 | |||||||||||||||
| Net sales: | |||||||||||||||||
| North America | $ | 18,586 | $ | 19,543 | $ | 20,126 | |||||||||||
International Developed Markets | 3,539 | 3,535 | 3,623 | ||||||||||||||
Total segment net sales | 22,125 | 23,078 | 23,749 | ||||||||||||||
Emerging Markets | 2,817 | 2,768 | 2,891 | ||||||||||||||
| Total net sales | $ | 24,942 | $ | 25,846 | $ | 26,640 | |||||||||||
Segment Adjusted Operating Income was (in millions):
| December 27, 2025 | |||||||||||||||||
North America | International Developed Markets | Total | |||||||||||||||
| Net Sales | $ | 18,586 | $ | 3,539 | |||||||||||||
Adjusted Cost of Products Sold(a) | 12,076 | 2,497 | |||||||||||||||
Other segment items(b) | 2,121 | 499 | |||||||||||||||
| Segment Adjusted Operating Income | $ | 4,389 | $ | 543 | $ | 4,932 | |||||||||||
Emerging Markets | 341 | ||||||||||||||||
General corporate expenses | (528) | ||||||||||||||||
| Restructuring activities | (13) | ||||||||||||||||
| Unrealized gains/(losses) on commodity hedges | (35) | ||||||||||||||||
| Impairment losses | (9,306) | ||||||||||||||||
Separation costs | (60) | ||||||||||||||||
| Operating income/(loss) | $ | (4,669) | |||||||||||||||
| Interest expense | 947 | ||||||||||||||||
| Other expense/(income) | (171) | ||||||||||||||||
| Income/(loss) before income taxes | $ | (5,445) | |||||||||||||||
(a) Adjusted Cost of Products Sold is defined as cost of products sold excluding, when they occur, the impacts of restructuring activities, deal costs, separation costs, unrealized gains/(losses) on commodity hedges (the unrealized gains and losses are recorded in general corporate expenses until realized; once realized, the gains and losses are recorded in the applicable segment’s operating results), impairment losses, and certain non-ordinary course legal and regulatory matters.
(b) Other segment items for North America and International Developed Markets includes SG&A, primarily for marketing and advertising expenses, employee compensation-related expenses, amortization of definite-lived intangible assets, and research and development costs.
| December 28, 2024 | |||||||||||||||||
North America | International Developed Markets | Total | |||||||||||||||
| Net Sales | $ | 19,543 | $ | 3,535 | |||||||||||||
Adjusted Cost of Products Sold(a) | 12,356 | 2,482 | |||||||||||||||
Other segment items(b) | 2,076 | 516 | |||||||||||||||
| Segment Adjusted Operating Income | $ | 5,111 | $ | 537 | $ | 5,648 | |||||||||||
Emerging Markets | 321 | ||||||||||||||||
General corporate expenses | (609) | ||||||||||||||||
| Restructuring activities | (27) | ||||||||||||||||
| Unrealized gains/(losses) on commodity hedges | 19 | ||||||||||||||||
| Impairment losses | (3,669) | ||||||||||||||||
| Operating income/(loss) | $ | 1,683 | |||||||||||||||
| Interest expense | 912 | ||||||||||||||||
| Other expense/(income) | (85) | ||||||||||||||||
| Income/(loss) before income taxes | $ | 856 | |||||||||||||||
(a) Adjusted Cost of Products Sold is defined as cost of products sold excluding, when they occur, the impacts of restructuring activities, deal costs, separation costs, unrealized gains/(losses) on commodity hedges (the unrealized gains and losses are recorded in general corporate expenses until realized; once realized, the gains and losses are recorded in the applicable segment’s operating results), impairment losses, and certain non-ordinary course legal and regulatory matters.
(b) Other segment items for North America and International Developed Markets includes SG&A, primarily for marketing and advertising expenses, employee compensation-related expenses, amortization of definite-lived intangible assets, and research and development costs.
| December 30, 2023 | |||||||||||||||||
North America | International Developed Markets | Total | |||||||||||||||
| Net Sales | $ | 20,126 | $ | 3,623 | |||||||||||||
Adjusted Cost of Products Sold(a) | 12,948 | 2,580 | |||||||||||||||
Other segment items(b) | 2,128 | 521 | |||||||||||||||
| Segment Adjusted Operating Income | $ | 5,050 | $ | 522 | $ | 5,572 | |||||||||||
Emerging Markets | 376 | ||||||||||||||||
| General corporate expenses | (651) | ||||||||||||||||
| Restructuring activities | (60) | ||||||||||||||||
| Unrealized gains/(losses) on commodity hedges | (1) | ||||||||||||||||
| Impairment losses | (662) | ||||||||||||||||
| Certain non-ordinary course legal and regulatory matters | (2) | ||||||||||||||||
| Operating income/(loss) | $ | 4,572 | |||||||||||||||
| Interest expense | 912 | ||||||||||||||||
| Other expense/(income) | 27 | ||||||||||||||||
| Income/(loss) before income taxes | $ | 3,633 | |||||||||||||||
(a) Adjusted Cost of Products Sold is defined as cost of products sold excluding, when they occur, the impacts of restructuring activities, deal costs, separation costs, unrealized gains/(losses) on commodity hedges (the unrealized gains and losses are recorded in general corporate expenses until realized; once realized, the gains and losses are recorded in the applicable segment’s operating results), impairment losses, and certain non-ordinary course legal and regulatory matters.
(b) Other segment items for North America and International Developed Markets includes SG&A, primarily for marketing and advertising expenses, employee compensation-related expenses, amortization of definite-lived intangible assets, and research and development costs.
Total depreciation and amortization expense by segment was (in millions):
| December 27, 2025 | December 28, 2024 | December 30, 2023 | |||||||||||||||
| Depreciation and amortization expense: | |||||||||||||||||
| North America | $ | 638 | $ | 614 | $ | 561 | |||||||||||
International Developed Markets | 150 | 156 | 157 | ||||||||||||||
Total segment depreciation and amortization expense | 788 | 770 | 718 | ||||||||||||||
Emerging Markets | 112 | 106 | 157 | ||||||||||||||
General corporate | 68 | 72 | 86 | ||||||||||||||
| Total depreciation and amortization expense | $ | 968 | $ | 948 | $ | 961 | |||||||||||
Total capital expenditures by segment were (in millions):
| December 27, 2025 | December 28, 2024 | December 30, 2023 | |||||||||||||||
| Capital expenditures: | |||||||||||||||||
| North America | $ | 497 | $ | 643 | $ | 604 | |||||||||||
International Developed Markets | 112 | 154 | 178 | ||||||||||||||
Total segment capital expenditures | 609 | 797 | 782 | ||||||||||||||
Emerging Markets | 105 | 115 | 163 | ||||||||||||||
General corporate | 87 | 112 | 68 | ||||||||||||||
| Total capital expenditures | $ | 801 | $ | 1,024 | $ | 1,013 | |||||||||||
We manage our product portfolio through eight consumer-driven product platforms: Taste Elevation, Easy Ready Meals, Substantial Snacking, Desserts, Hydration, Cheese, Coffee, and Meats. A platform is a lens created for the portfolio based on a grouping of consumer needs. The platforms help us to manage and organize our business effectively by providing insight into our various product categories and brands.
Taste Elevation includes condiments, sauces, dressings, and spreads. Easy Ready Meals includes Kraft Mac & Cheese varieties, frozen potato products, and other frozen meals. Substantial Snacking includes Lunchables meal kits, frozen snacks, and pickles. Desserts includes dry packaged desserts, refrigerated ready to eat desserts, and other dessert toppings. Hydration includes ready to drink beverages, powdered beverages, and liquid concentrates. Cheese includes American sliced and recipe cheeses. Coffee includes mainstream coffee, coffee pods, and premium coffee. Meats include cold cuts, bacon, and hot dogs.
Each platform is assigned a role within our business to help inform our resource allocation and investment decisions, which are made at the operating segment level. These roles include: Accelerate, Protect, and Balance. Our Accelerate role contains platforms that are expected to have high growth potential, generate higher gross margins, and are in markets in which we have higher market share. Our Protect role contains platforms that are expected to have moderate growth potential, tend to generate higher gross margins, and are in markets in which we have higher market share. Our Balance role contains platforms that include commodity-heavy categories with relatively flat growth potential but help us to maintain our brand footprint.
We have reflected this change to our platforms in all historical periods presented.
Net sales by platform were (in millions):
| December 27, 2025 | December 28, 2024 | December 30, 2023 | |||||||||||||||
| ACCELERATE | |||||||||||||||||
| Taste Elevation | $ | 11,281 | $ | 11,371 | $ | 11,573 | |||||||||||
| Easy Ready Meals | 4,068 | 4,310 | 4,437 | ||||||||||||||
| Substantial Snacking | 1,532 | 1,668 | 1,853 | ||||||||||||||
| Total Accelerate | $ | 16,881 | $ | 17,349 | $ | 17,863 | |||||||||||
| PROTECT | |||||||||||||||||
| Desserts | $ | 1,123 | $ | 1,152 | $ | 1,153 | |||||||||||
| Hydration | 2,095 | 2,129 | 2,242 | ||||||||||||||
| Total Protect | $ | 3,218 | $ | 3,281 | $ | 3,395 | |||||||||||
| BALANCE | |||||||||||||||||
| Cheese | $ | 1,657 | $ | 1,746 | $ | 1,786 | |||||||||||
| Coffee | 867 | 835 | 891 | ||||||||||||||
| Meats | 1,924 | 2,136 | 2,197 | ||||||||||||||
| Other | 395 | 499 | 508 | ||||||||||||||
| Total Balance | $ | 4,843 | $ | 5,216 | $ | 5,382 | |||||||||||
| Total net sales | $ | 24,942 | $ | 25,846 | $ | 26,640 | |||||||||||
The net sales by platform for the years ended December 28, 2024 and December 30, 2023 presented in the table above has been corrected to conform to our previously disclosed platform definitions. The update had no impact on net sales or on the consolidated financial statements and we do not believe they are material to the consolidated financial statements.
Concentration of Risk:
Our largest customer, Walmart Inc., represented approximately 21% of our net sales in 2025, 2024, and 2023. Both of our reportable segments have sales to Walmart Inc.
Geographic Financial Information:
We had significant sales in the United States, Canada, and the United Kingdom. Our net sales by geography were (in millions):
| December 27, 2025 | December 28, 2024 | December 30, 2023 | |||||||||||||||
| Net sales: | |||||||||||||||||
| United States | $ | 16,784 | $ | 17,768 | $ | 18,377 | |||||||||||
| Canada | 1,802 | 1,775 | 1,749 | ||||||||||||||
| United Kingdom | 1,270 | 1,280 | 1,271 | ||||||||||||||
| Other | 5,086 | 5,023 | 5,243 | ||||||||||||||
| Total net sales | $ | 24,942 | $ | 25,846 | $ | 26,640 | |||||||||||
We had significant long-lived assets in the United States. Long-lived assets are comprised of property, plant and equipment, net of related accumulated depreciation; operating lease right-of-use assets, net of related accumulated depreciation; and the non-current portion of deferred implementation costs for hosted cloud computing service arrangements. Our long-lived assets by geography were (in millions):
| December 27, 2025 | December 28, 2024 | ||||||||||
| Long-lived assets: | |||||||||||
| United States | $ | 5,462 | $ | 5,415 | |||||||
| Other | 2,471 | 2,381 | |||||||||
| Total long-lived assets | $ | 7,933 | $ | 7,796 | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 12, 2026 | Showing above |
| 2024 | Feb 13, 2025 | |
| 2023 | Feb 15, 2024 | |
| 2022 | Feb 16, 2023 | |
| 2021 | Feb 17, 2022 | |
| 2020 | Feb 17, 2021 | |
| 2019 | Feb 14, 2020 | |
| 2018 | Jun 7, 2019 | |
| 2017 | Feb 16, 2018 | |
| 2016 | Mar 3, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.