Kraft Heinz (KHC) Faces Share Sale as Berkshire Hathaway (BRK.A) Considers Offloading Stake
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Shareholder Selloff Anticipation: Kraft Heinz (KHC) shares dropped 5.7% to $22.42 in premarket trading after SEC filings indicated that Berkshire Hathaway (BRK.A) may sell its 27.5% stake, reflecting market unease about the company's future prospects.
- Restructuring Progress: Last year, Kraft Heinz announced plans to split into two independent publicly traded companies by the second half of 2026, aiming to address ongoing financial pressures and sluggish growth through more efficient capital allocation and streamlined operations, indicating a strategic pivot in a rapidly changing food industry.
- New Business Structure: Post-split, Global Taste Elevation Co. will include brands like Heinz and Kraft Mac & Cheese, with over $15 billion in annual sales, focusing on global sauces and meals, while North American Grocery Co. will feature brands like Oscar Mayer, targeting a projected $10.4 billion in net sales for 2024, aiming to dominate the North American grocery sector.
- Market Reaction Analysis: Analysts believe that both new entities must demonstrate their ability to grow independently and sustain their iconic brands in the fast-evolving food sector, a challenge that will directly impact investor confidence in KHC's future.
Analyst Views on KHC
Wall Street analysts forecast KHC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KHC is 25.86 USD with a low forecast of 24.00 USD and a high forecast of 28.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
0 Buy
14 Hold
1 Sell
Hold
Current: 23.760
Low
24.00
Averages
25.86
High
28.00
Current: 23.760
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, and Meats. 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.
