Kraft Heinz Co (NASDAQ:KHC) stock is down 7% to trade at $22.07 at last check, following news that Berkshire Hathaway -- the company's biggest shareholder -- could sell nearly all of its shares.
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.
Kraft Heinz (KHC) reached $23.54 at the closing of the latest trading day, reflecting a -2.89% change compared to its last close.
In the closing of the recent trading day, Kraft Heinz (KHC) stood at $23.43, denoting a +1.83% move from the preceding trading day.
Shares in giant food companies such as Kraft Heinz and PepsiCo lost ground Wednesday as top officials in the Trump administration criticized ultraprocessed foods and sugary drinks while releasing new dietary guidelines.
Kraft Heinz (KHC) concluded the recent trading session at $23.77, signifying a -2.54% move from its prior day's close.
Buzzy upstarts and supermarket knockoffs have eaten into the market share of the leading brand. Years of cost cutting, underinvestment and corporate chaos preceded a planned company split.
Kraft Heinz has underperformed, delivering a -11% total return over five years versus the S&P 500's 98%. I see KHC shares as attractively valued, with investor skepticism driving a depressed multiple despite a number of recent positive catalysts. The recently announced CEO change and planned company split are positive catalysts for KHC's stock.
In the closing of the recent trading day, Kraft Heinz (KHC) stood at $24.15, denoting a -1.47% move from the preceding trading day.
Kraft Heinz is undergoing a major restructuring, including a planned business split and the appointment of a new CEO with relevant M&A experience. Kraft Heinz shares are now cheap enough to account for the company's lackluster operational results. Despite persistent structural challenges and negative sentiment, the current valuation offsets downside risk.
Kraft Heinz announced on Tuesday that new CEO Steve Cahillane will join the food giant to help steer its split into two companies. The former head of Kellanova joins the ailing food giant after years of declining sales and slow growth, and as shares are down 75% since 2017.
Kraft Heinz (KHC) is changing its recipe for leadership ahead of a planned split next year.