Kraft Heinz shares move lower as Berkshire Hathaway moves to sell stake

Kraft Heinz Co (NASDAQ:KHC, XETRA:KHNZ) shares fell more than 4% after Berkshire Hathaway, the company’s largest shareholder, filed paperwork indicating it could sell its entire stake.

The filing, submitted to the Securities and Exchange Commission (SEC) on January 20, showed Berkshire, now led by CEO Greg Abel, holds about 27.5% of Kraft Heinz, roughly 325 million shares.

The filing does not confirm a sale but allows Berkshire flexibility to divest its position, triggering immediate selling pressure.

This comes as Jefferies analysts reiterated a cautious view on Kraft Heinz, pointing to “rising investment needs” and a “cloudy split strategy” as key concerns.

They noted that US tracked retail sales fell roughly 4% year-over-year in the fourth quarter, broadly in line with the third quarter, “though with worse volumes and ongoing share loss.” Volumes have worsened sequentially as price investments moderated and price realization “inflected slightly positive,” and the company continues to lose share across nearly all top categories, they added.

Jefferies highlighted that only two of Kraft Heinz’s top 10 brands saw positive volume growth in the six months and 12 weeks ending December 27, underscoring the need for incremental brand investments.

While some peers have leaned into price and value, Jefferies believes Kraft Heinz is relying more on “innovation and marketing,” with marketing investments initiated in 2025 expected to continue and incremental R&D ramping.

The firm cautioned that the degree of incrementality remains unclear and that the “pressured low-mid income US consumer raises concern that more action may be required on the price/value front as well.”

Jefferies also said the company’s “focus on its upcoming split” and the recent CEO transition could create further uncertainty. Steve Cahillane’s appointment has drawn attention, given his experience guiding Kellogg through a split and leading Kellanova until its acquisition by Mars, and Jefferies noted that some investors question the rationale for including Kraft Mac & Cheese within Global Taste Elevation.

The analysts wrote that Cahillane’s arrival increases the likelihood of a possible revision of the planned split structure, and they added that management’s focus on the separation could detract from efforts to reignite organic growth.

As such, Jefferies reiterated a ‘Hold’ rating with a $23 price target on the company, in line with current levels, noting that demand challenges, incremental investment needs and split uncertainty warrant caution.