Kraft Heinz bets on Disney to revive its brands

Mickey Mouse can sell plenty of macaroni and cheese, but whether that will be enough to help revive Kraft Heinz is another question.

Kraft Heinz and Walt Disney announced a multiyear partnership Tuesday that will place brands including Heinz, Philadelphia, and Kraft Mac & Cheese across Disney’s North American theme parks, resorts, and cruise ships.

The alliance also covers Disney’s studios and streaming platforms, giving the companies opportunities to develop advertising, digital content, themed products, and experiences using Disney characters and franchises.

That sounds like a promising deal. But neither Disney nor Kraft Heinz stock moved much on Tuesday following the announcement. Disney shares were down 0.2%, while Kraft Heinz shares fell 0.3%. The stocks have lost 20% and 6% over the past 12 months, respectively.

The partnership is strategically appealing but financially difficult to value because the companies disclosed no contract value, revenue contribution, or profit expectations, leaving investors with little reason to revise earnings estimates until they see evidence that the deal is contributing to results.

For Kraft Heinz, the deal is less about selling ketchup inside Cinderella Castle than making its aging supermarket brands feel culturally relevant again. The packaged-food maker said earlier this year that it’s investing $600 million in marketing, sales, research, and product improvements as new CEO Steve Cahillane attempts to reverse years of weak demand.

Like many packaged-food companies, Kraft Heinz has been struggling with persistent volume declines. Consumers remain cautious after years of price increases, while private-label competition and changing diet preferences continue to pressure established brands. Organic sales fell 3.4% in 2025 from a year ago, while adjusted earnings declined 15%.

Management expects organic sales to continue declining by between 1.5% and 3.5% in 2026.

There had been plans to divide the firm into two companies focusing on different products to unlock shareholder value. But the new CEO paused the separation, concluding that stabilizing the core business should take priority after years of underinvestment.

The new deal gives Kraft Heinz access to Disney branding at theme parks, on streaming screens, and potentially in grocery aisles one day. But any benefits from character-branded products or Disney-park exposure will take time to emerge. Disney magic may improve brand visibility, but Wall Street still wants numbers.

For Disney investors, the Kraft Heinz deal is not only about selling more food inside its parks. It could help the firm add another channel to license and promote its intellectual property and create more distinctive food experiences without bearing the full cost of product development and marketing.

Still, the agreement is unlikely to change Disney’s financial trajectory. Investors are more focused on the company’s streaming profitability, attendance at its domestic parks, sports-rights costs, and cruise-ship expansion.

Until the partnership produces measurable revenue or profit growth, it will likely be viewed as a branding initiative rather than a meaningful financial catalyst for either company.

Write to Evie Liu at [email protected]