The board of directors of the Kraft Heinz Company has approved a share repurchase programme, authorising the company to repurchase up to $3 billion of the company’s outstanding shares of common stock through 26 December 2026.
As part of the programme, Kraft Heinz intends to repurchase shares with excess cash after allocations for disciplined capital spending, which includes, among others, investments to support organic growth in key areas of its business, payment of dividends and evaluation of strategic opportunities.
“In the third quarter, we hit a milestone in our transformation – reaching our targeted net leverage of approximately 3.0x. A stronger balance sheet, along with advancements we have made across the business, gives us further conviction behind our strategy and the belief that company shares are an attractive investment opportunity,” said Kraft Heinz CEO and chair of the board Miguel Patricio.
He added, “As such, we are in a position of strength to round out our capital allocation policy. Our board authorised a $3 billion share repurchase programme over the next three years, allowing us to provide further value to our stockholders while underscoring our commitment to delivering profitable growth and driving strong returns."
Capital Allocation
The company considers, among other things, its historical and expected business performance and cash and liquidity position, as well as global economic and market conditions and the market price of its common stock while determining the amount of capital to allocate to share repurchases.
The timing, manner, price and amount of any repurchases under the share repurchase programme will be determined by the company, Kraft Heinz added.
Purchases may be executed through open market transactions, privately negotiated transactions, transactions structured through investment banking institutions, or other means.
Kraft Heinz is not obligated to repurchase any specific number of shares and the programme may be modified, suspended, or discontinued at any time.
Moreover, the share repurchase programme will be in addition to the company’s share repurchases to offset the dilutive effect of equity-based compensation.
