Shares of Kraft Heinz Co. were 7% lower at $35.92 by midday Wednesday after the company beat second-quarter earnings expectations and said it will increase its promotions.
The food giant’s top line and earnings were above analysts’ expectations, and comparable sales grew more than 10% during the quarter due to higher prices.
Those raised prices and supply constraints led to lower sales volume for the quarter. Kraft’s gross profit margin also narrowed amid steep inflation on key ingredients, packaging materials, transportation and labor.
Kraft said Wednesday that it will offer more deals and discounts in the months ahead as customers seek savings in the face of record inflation and the threat of a recession.