Berkshire Hathaway May Sell Kraft Heinz Shares After Buffett's Retirement
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 23 2026
0mins
Should l Buy KHC?
Source: NASDAQ.COM
- New CEO Decisions: Following Buffett's retirement, Berkshire's new CEO Greg Abel may reduce its stake in Kraft Heinz, currently holding 27.5% of shares worth $7.7 billion, which could impact market confidence in Kraft Heinz.
- Selling Trend Emerges: Abel is likely to continue reducing exposure to Apple and Bank of America, with Buffett having sold 74% of Apple and 45% of Bank of America between September 2023 and September 2025, reflecting concerns over high valuations.
- Market Reaction Anticipated: Kraft Heinz's filing of a prospectus supplement suggests Berkshire may sell up to 325 million shares, although no definitive sale plan exists, the market widely expects significant selling activity.
- Valuation Pressure: With Apple's P/E ratio exceeding 33, Abel may consider selling due to stagnant sales growth, while Bank of America's stock is nearing a 50% premium to book value, potentially affecting future net interest income.
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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: 22.270
Low
24.00
Averages
25.86
High
28.00
Current: 22.270
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.
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- Depop Sale Loss: Etsy sold Depop for $1.2 billion, significantly lower than the $1.625 billion it paid in 2021, highlighting the company's weakened position in market competition, which may affect future investor confidence.
- Nike's Revenue Stagnation: Nike has experienced a -2.27% CAGR over the past three years, indicating a continuous loss of market share; while wholesale revenue grew by 5% year-over-year, direct sales fell by 4%, reflecting overall growth challenges.
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- Nike Revenue Struggles: Nike has experienced a -2.27% CAGR over the past three years, with wholesale revenue up 5% year-over-year but offset by a 4% decline in direct sales, reflecting a loss of market share and casting doubt on future growth prospects.
- Tesla Profitability Risks: Despite Tesla exceeding a $1 trillion market cap, its revenue dipped by 3% year-over-year in 2025, with a 10% decline in automobile sales and a 46% drop in GAAP net income, highlighting significant growth challenges that investors should be wary of.
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- Etsy Sales Decline: Etsy's gross merchandise sales fell by 5.3% year-over-year in 2025, and while there was a slight recovery in Q4 excluding Reverb sales, the overall decrease in active buyers and sellers alongside a drop in net income indicates a weakening market position.
- Nike's Weak Performance: In its Q3 fiscal 2026 report, Nike showed flat year-over-year revenue despite a 5% increase in wholesale revenue, as direct sales declined by 4%, highlighting ongoing market share losses, particularly with a 7% drop in sales in China.
- Tesla's Growth Obstacles: Despite exceeding a $1 trillion market cap, Tesla's revenue dipped by 3% year-over-year in 2025, with a 10% decline in automobile sales and a 46% drop in GAAP net income, indicating significant challenges in sustaining growth in the electric vehicle market.
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See More
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- Buffett's Investment Mistake: Warren Buffett admitted that investing in Kraft Heinz was a mistake, as the company announced significant write-downs, indicating he overpaid for the business; however, he maintained his traditional investment approach without taking more active measures amid ongoing struggles.
- Abel's Active Investment: New CEO Greg Abel made it clear he was displeased with Kraft Heinz and intended to sell the stock, quickly demonstrating a more active investment style than Buffett, indicating a shift towards more hands-on management strategies.
- Kraft Heinz's Strategic Shift: Following Abel's expression of dissatisfaction, Kraft Heinz's new CEO announced a focus on significant improvements within the existing business; while it's unclear if Abel's intentions directly influenced this decision, Berkshire's over 27% stake suggests his impact is significant.
- Berkshire's Holding Strategy: Abel indicated that Berkshire Hathaway would not sell its Kraft Heinz stake, showing a willingness to adjust strategies as market conditions change, reflecting confidence in future investments and providing a positive signal for Berkshire investors.
See More
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- Market Performance Comparison: Between March 24 and March 31, KHC's stock rose approximately 5.5%, contrasting with a mere 0.43% decline in the S&P 500 during the same period, showcasing the company's relative strength in the consumer goods sector.
- Analyst Ratings: According to Seeking Alpha's QuantRating system, KHC holds a 'Hold' rating with a score of 3.06, receiving an A for valuation but an F for growth, highlighting ongoing weaknesses in its fundamentals.
- Long-Term Outlook: While KHC's low valuation and high dividend yield may attract investors, analysts caution that persistent declines in revenue and margins, along with negative total returns, signal deeper structural issues, suggesting that the market's pessimism may reflect a lack of compelling value.
See More
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- Equity Structure Change: After the deal closes, Unilever shareholders will own 55.1% of the combined company while Unilever retains a 9.9% stake, a structure that will influence future governance and strategic decisions of the merged entity.
- Strategic Focus Shift: By divesting its food business, Unilever can concentrate more on its personal care segment, which is growing faster, reflecting the company's keen insight into future market trends and consumer preferences.
- Response to Industry Trends: This acquisition aligns with the broader trend in the Big Food sector, where many packaged food and beverage companies are streamlining operations through divestitures and spinoffs to address declining consumer demand, with nearly half of 2024's M&A activity in the consumer products industry expected to come from divestitures.
See More
