The Kraft Heinz Company reported lackluster financial results for the fourth quarter of 2024 and provided a gloomy outlook for 2025, as the packaged food giant grapples with sluggish demand for its products amid higher prices and economic uncertainty.

For the quarter ended December 28, 2024, Kraft Heinz's net sales declined 4.1% year-over-year to $6.58 billion, missing analysts' estimates of $6.66 billion. The company attributed the sales decline to continued shifts in consumer behavior due to economic uncertainty and a decline in its Lunchables brand.

While Kraft Heinz's adjusted earnings per share (EPS) of $0.84 for the quarter beat analysts' expectations of $0.78, the company's outlook for fiscal 2025 was disappointing. Kraft Heinz forecasts adjusted EPS in the range of $2.63 to $2.74, well below analysts' average estimate of $3.04.

The company expects organic net sales for 2025 to be flat to down 2.5% year-over-year, reflecting the ongoing challenges it faces in driving top-line growth. Kraft Heinz cited sequential improvement in organic net sales throughout each quarter in 2025, with a flat to slightly positive contribution from pricing.

Kraft Heinz's CEO, Carlos Abrams-Rivera, acknowledged the challenging year and emphasized the company's focus on executing its strategic initiatives to drive long-term profitable growth. However, he cautioned that the company has "much more work to do" to improve its top-line performance while remaining disciplined in its investments.