Berkshire Hathaway May Sell 27.5% Stake in Kraft Heinz, Ending Decade-Long Investment
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 21 2026
0mins
Should l Buy KHC?
Source: seekingalpha
- Potential Stake Sale: According to a regulatory filing on Tuesday, Berkshire Hathaway may offer to sell its 27.5% stake in Kraft Heinz, involving 325,442,152 shares, marking a significant shift since its investment began in 2015.
- Stock Price Reaction: Following the filing, Kraft Heinz shares fell nearly 4% to $22.85, indicating market concerns over the potential sale and its implications for the company's future financing capabilities.
- Poor Investment Returns: Berkshire Hathaway's investment in Kraft Heinz has underperformed expectations, with a $3.76 billion write-down taken last summer, highlighting that the merger has not delivered the anticipated long-term growth from its well-known brands.
- Company Split Plan: Kraft Heinz's board has unanimously approved a plan to separate the company into two independent publicly traded entities, aiming to simplify operations and enhance performance, reflecting a strategic shift towards future growth.
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Analyst Views on KHC
Wall Street analysts forecast KHC stock price to rise
15 Analyst Rating
0 Buy
14 Hold
1 Sell
Hold
Current: 22.540
Low
24.00
Averages
25.86
High
28.00
Current: 22.540
Low
24.00
Averages
25.86
High
28.00
About KHC
The Kraft Heinz Company manufactures and markets food and beverage products around the world through its eight consumer-driven product platforms: Taste Elevation, Easy Ready Meals, Substantial Snacking, Desserts, Hydration, Cheese, Coffee, Meats, and other grocery products. The Company has two reportable segments defined by geographic region: North America and International Developed Markets. Its other segments, consisting of West and East Emerging Markets (WEEM) and Asia Emerging Markets (AEM), are combined and disclosed as Emerging Markets. It manufactures its products from a wide variety of raw materials. Its brands include Kraft, Oscar Mayer, Heinz, Philadelphia, Lunchables, Velveeta, Ore-Ida, Capri Sun, Maxwell Apartment, Kool-Aid, Jell-O, Heinz, Golden Circle, Wattie's, Plasmon, Heinz, ABC, Master, Quero, Kraft, and Pudliszki, among others. The Company's products are sold through its own sales organizations and through independent brokers, agents, and distributors.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Kraft Heinz Q1 2026 Earnings Call Insights
- Portfolio Reclassification: Kraft Heinz downgraded frozen foods from 'Win Big' to 'Hold' while upgrading 'Hydration' to 'Win Big', reflecting a pragmatic approach to portfolio management amid market pressures and a strategic shift towards higher growth and margin categories.
- Revenue Guidance Downgrade: CFO Andre Maciel projected a revenue decline of 3% to 5% for Q2, primarily due to surging energy and resin prices, indicating significant near-term pressure from inflation volatility on the company's financial performance.
- Investment Plan Reaffirmed: Management reiterated the $600 million incremental investment plan, with most funds still available, demonstrating a commitment to maintaining guidance while remaining optimistic about future growth opportunities despite current challenges.
- Cash Flow and Capital Allocation: Maciel indicated that cash flow is expected to decrease in the second half of the year, with plans to pay down debt in Q2, highlighting the company's financial flexibility and strategic response to market conditions.
See More
Kraft Heinz CEO Discusses Brand Modernization Strategy
- Brand Modernization Opportunities: CEO Steve Cahillane highlighted that Kraft Heinz sees its biggest growth opportunities in modernizing legacy brands, emphasizing that with investment and focus, these brands can be revitalized to enhance market competitiveness.
- Earnings Beat Expectations: The company reported first-quarter earnings and revenue that exceeded expectations, with shares rising over 2%, reflecting investor confidence in Cahillane's turnaround efforts, despite the stock being in a long-term decline.
- Focus on Health Trends: Cahillane noted that health and wellness is a major focus area, particularly with the launch of PowerMac, which contains 17 grams of protein and 6 grams of fiber, aimed at meeting consumer demand for healthier food options and driving sales growth.
- Adaptive Brand Innovation: Kraft Heinz successfully attracted aging child consumers by introducing a Capri Sun variant with electrolytes, showcasing the company's innovative capabilities in adapting to market changes and evolving consumer preferences.
See More
Significant Stock Price Movements for Multiple Companies
- Arm Holdings Surge: Ahead of its earnings report, Arm Holdings saw a nearly 13% jump on Nasdaq, with UBS analyst raising its 12-month price target from $175 to $245, indicating strong market optimism for its growth potential.
- Healthpeak Properties Strong Performance: The healthcare REIT soared 18% after first-quarter funds from operations and revenue exceeded Wall Street expectations, raising its second-quarter FFO guidance to $1.71 to $1.75, reflecting robust business momentum.
- CDW Stock Decline: CDW shares dropped 19% after reporting disappointing operating income in Q1, with adjusted EPS of $2.28 matching consensus, yet the company reaffirmed its 2026 outlook, raising concerns about future performance.
- Aurora Innovation Partnership: Aurora Innovation's stock rose 9% following a deal to provide driverless technology to Berkshire Hathaway's McLane, which is expected to enhance its competitive edge in the long-haul trucking market.
See More
U.S. Stocks Hit Record Highs Led by Tech Rally
- Market Performance: The S&P 500 and Nasdaq reached record highs on Wednesday, primarily driven by progress toward a U.S.-Iran peace deal, with falling oil prices and interest rates fueling a strong tech rally, reflecting optimistic sentiment about economic recovery.
- Tech Stock Surge: The new optical fiber partnership between Corning and Nvidia propelled tech stocks higher, with Corning shares rising 11%, indicating that investments in AI and data center infrastructure are becoming key drivers of economic growth and solidifying the tech sector's market position.
- Arm Holdings Outlook: Arm Holdings' stock climbed 12% ahead of earnings, although Jim Cramer cautioned investors against expecting a significant post-report rally, emphasizing intense competition, particularly from Intel and AMD, which may limit its subsequent performance.
- Portfolio Dynamics: Jim Cramer expressed satisfaction with investments in Alphabet and Amazon, noting Anthropic's commitment to spend up to $200 billion with Google Cloud over the next five years, highlighting the potential and competitiveness of the cloud computing market, which further strengthens confidence in these tech stocks.
See More
Kraft Heinz Reports Modest Revenue Growth in Q1
- Revenue Growth: Kraft Heinz reported a 0.8% year-over-year revenue increase in Q1 to $6.05 billion, despite a 0.4% decline in organic sales that missed the consensus expectation of a 2.4% drop, indicating competitive pressures in the market.
- Divergent Market Performance: Organic sales in North America fell by 1.1%, while emerging markets saw a 3.8% increase, highlighting significant regional performance disparities that necessitate a stronger recovery strategy in North America moving forward.
- Adjusted Operating Income Decline: The adjusted operating income decreased by 11.8% to $1.1 billion in Q1, primarily due to rising advertising expenses and inflationary pressures in manufacturing and logistics, reflecting challenges in cost control that impacted overall profitability.
- Future Outlook: Kraft Heinz anticipates organic sales to decline between 1.5% and 3.5% in FY26, with EPS projected at $1.98 to $2.10, indicating a cautious approach in navigating market pressures and pursuing growth recovery.
See More
Kraft Heinz Reports Better-Than-Expected Earnings
- Earnings Beat: Kraft Heinz reported a non-GAAP EPS of $0.58, exceeding expectations by $0.08, indicating the company's resilience in a challenging economic environment despite overall growth stagnation.
- Revenue Performance: The company achieved first-quarter revenue of $6.05 billion, surpassing the anticipated $5.83 billion, demonstrating its ability to maintain market share amid slowing consumer spending.
- Margin Pressures: Despite the revenue and earnings beat, Kraft Heinz faces challenges from weakening consumer demand and depleting margins, which could impact future profitability and market confidence.
- Competitive Landscape: The contrasting performance between Kraft Heinz and Mondelez highlights a divergence in growth strategies, with Mondelez showing stronger resilience, potentially threatening Kraft Heinz's market position.
See More
Kraft Heinz Q1 2026 Earnings Call Insights
- Portfolio Reclassification: Kraft Heinz downgraded frozen foods from 'Win Big' to 'Hold' while upgrading 'Hydration' to 'Win Big', reflecting a pragmatic approach to portfolio management amid market pressures and a strategic shift towards higher growth and margin categories.
- Revenue Guidance Downgrade: CFO Andre Maciel projected a revenue decline of 3% to 5% for Q2, primarily due to surging energy and resin prices, indicating significant near-term pressure from inflation volatility on the company's financial performance.
- Investment Plan Reaffirmed: Management reiterated the $600 million incremental investment plan, with most funds still available, demonstrating a commitment to maintaining guidance while remaining optimistic about future growth opportunities despite current challenges.
- Cash Flow and Capital Allocation: Maciel indicated that cash flow is expected to decrease in the second half of the year, with plans to pay down debt in Q2, highlighting the company's financial flexibility and strategic response to market conditions.
See More
Kraft Heinz CEO Discusses Brand Modernization Strategy
- Brand Modernization Opportunities: CEO Steve Cahillane highlighted that Kraft Heinz sees its biggest growth opportunities in modernizing legacy brands, emphasizing that with investment and focus, these brands can be revitalized to enhance market competitiveness.
- Earnings Beat Expectations: The company reported first-quarter earnings and revenue that exceeded expectations, with shares rising over 2%, reflecting investor confidence in Cahillane's turnaround efforts, despite the stock being in a long-term decline.
- Focus on Health Trends: Cahillane noted that health and wellness is a major focus area, particularly with the launch of PowerMac, which contains 17 grams of protein and 6 grams of fiber, aimed at meeting consumer demand for healthier food options and driving sales growth.
- Adaptive Brand Innovation: Kraft Heinz successfully attracted aging child consumers by introducing a Capri Sun variant with electrolytes, showcasing the company's innovative capabilities in adapting to market changes and evolving consumer preferences.
See More
Significant Stock Price Movements for Multiple Companies
- Arm Holdings Surge: Ahead of its earnings report, Arm Holdings saw a nearly 13% jump on Nasdaq, with UBS analyst raising its 12-month price target from $175 to $245, indicating strong market optimism for its growth potential.
- Healthpeak Properties Strong Performance: The healthcare REIT soared 18% after first-quarter funds from operations and revenue exceeded Wall Street expectations, raising its second-quarter FFO guidance to $1.71 to $1.75, reflecting robust business momentum.
- CDW Stock Decline: CDW shares dropped 19% after reporting disappointing operating income in Q1, with adjusted EPS of $2.28 matching consensus, yet the company reaffirmed its 2026 outlook, raising concerns about future performance.
- Aurora Innovation Partnership: Aurora Innovation's stock rose 9% following a deal to provide driverless technology to Berkshire Hathaway's McLane, which is expected to enhance its competitive edge in the long-haul trucking market.
See More
U.S. Stocks Hit Record Highs Led by Tech Rally
- Market Performance: The S&P 500 and Nasdaq reached record highs on Wednesday, primarily driven by progress toward a U.S.-Iran peace deal, with falling oil prices and interest rates fueling a strong tech rally, reflecting optimistic sentiment about economic recovery.
- Tech Stock Surge: The new optical fiber partnership between Corning and Nvidia propelled tech stocks higher, with Corning shares rising 11%, indicating that investments in AI and data center infrastructure are becoming key drivers of economic growth and solidifying the tech sector's market position.
- Arm Holdings Outlook: Arm Holdings' stock climbed 12% ahead of earnings, although Jim Cramer cautioned investors against expecting a significant post-report rally, emphasizing intense competition, particularly from Intel and AMD, which may limit its subsequent performance.
- Portfolio Dynamics: Jim Cramer expressed satisfaction with investments in Alphabet and Amazon, noting Anthropic's commitment to spend up to $200 billion with Google Cloud over the next five years, highlighting the potential and competitiveness of the cloud computing market, which further strengthens confidence in these tech stocks.
See More
Kraft Heinz Reports Modest Revenue Growth in Q1
- Revenue Growth: Kraft Heinz reported a 0.8% year-over-year revenue increase in Q1 to $6.05 billion, despite a 0.4% decline in organic sales that missed the consensus expectation of a 2.4% drop, indicating competitive pressures in the market.
- Divergent Market Performance: Organic sales in North America fell by 1.1%, while emerging markets saw a 3.8% increase, highlighting significant regional performance disparities that necessitate a stronger recovery strategy in North America moving forward.
- Adjusted Operating Income Decline: The adjusted operating income decreased by 11.8% to $1.1 billion in Q1, primarily due to rising advertising expenses and inflationary pressures in manufacturing and logistics, reflecting challenges in cost control that impacted overall profitability.
- Future Outlook: Kraft Heinz anticipates organic sales to decline between 1.5% and 3.5% in FY26, with EPS projected at $1.98 to $2.10, indicating a cautious approach in navigating market pressures and pursuing growth recovery.
See More
Kraft Heinz Reports Better-Than-Expected Earnings
- Earnings Beat: Kraft Heinz reported a non-GAAP EPS of $0.58, exceeding expectations by $0.08, indicating the company's resilience in a challenging economic environment despite overall growth stagnation.
- Revenue Performance: The company achieved first-quarter revenue of $6.05 billion, surpassing the anticipated $5.83 billion, demonstrating its ability to maintain market share amid slowing consumer spending.
- Margin Pressures: Despite the revenue and earnings beat, Kraft Heinz faces challenges from weakening consumer demand and depleting margins, which could impact future profitability and market confidence.
- Competitive Landscape: The contrasting performance between Kraft Heinz and Mondelez highlights a divergence in growth strategies, with Mondelez showing stronger resilience, potentially threatening Kraft Heinz's market position.
See More
