The Kraft Heinz Company (KHC) stock plummeted over 7% in pre-market trading on Wednesday after the food giant reported disappointing fourth-quarter results and issued a gloomy profit outlook for 2025.

For the fourth 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.