On January 20, 2026, Berkshire Hathaway filed a registration statement with the SEC that allows the conglomerate to sell up to 325,442,152 shares of Kraft Heinz. The filing covers Berkshire’s 27.5% stake, the largest single ownership position in the company. The registration does not commit Berkshire to an immediate sale, but it clears the way for the conglomerate to reduce its exposure to a business that has underperformed relative to its cost basis.
Berkshire’s investment in Kraft Heinz has been a long‑running chapter in the company’s portfolio. At the end of Q3 2025, Berkshire’s cost basis for the stake was $8.5 billion, while the market value had fallen to $7.7 billion. The conglomerate has already written down $3 billion in 2019 and another $3.76 billion in August 2025, reflecting a cumulative loss of more than $6 billion on the holding. Greg Abel’s succession as CEO has prompted a review of Berkshire’s portfolio, and the registration statement signals a willingness to exit a position that has not delivered the expected returns.
Kraft Heinz’s recent financials underscore the challenges that prompted the filing. The company reported revenue of $6.24 billion for the quarter ending October 29, 2025, a 2.3% decline year‑over‑year, and earnings per share of $0.52, a 316.7% drop from the $1.70 reported in the same quarter a year earlier. The decline is driven by sluggish demand for core products, intensified competition from private‑label and healthier alternatives, and rising input costs that have eroded margins. Management has highlighted a 2% average annual sales growth forecast and operating margins in the low 20s, but the company remains under pressure to reinvigorate its brand portfolio.
In September 2025, Kraft Heinz announced a plan to split into two independent companies—Global Taste Elevation Co., focused on sauces, spreads, and shelf‑stable meals, and North American Grocery Co., which will house staples such as Oscar Wayer and Lunchables. The split is expected to complete in the second half of 2026 and is intended to unlock value by allowing each entity to pursue tailored growth strategies. Steve Cahillane, who will become CEO of the Global Taste Elevation Co., has been tasked with driving innovation and cost discipline in the sauces segment, while the grocery arm will focus on scale and distribution efficiencies.
The filing has prompted a reassessment of Kraft Heinz’s valuation by market participants. Morgan Stanley downgraded the stock from Equalweight to Underweight, citing competitive pressures and margin compression. JPMorgan lowered its price target to $24.00, while Piper Sandler raised its target to $27.00 but maintained a Neutral rating. These adjustments reflect concerns about the company’s ability to reverse its declining earnings trajectory and the uncertainty surrounding the split’s execution.
For Berkshire, the registration statement provides a mechanism to reduce a costly holding and potentially free capital for other opportunities. For Kraft Heinz, the prospect of a large share sale by its largest shareholder adds pressure on the company’s capital structure and may influence the timing and terms of the planned split. The event underscores the broader shift in Berkshire’s investment philosophy under Greg Abel, as the conglomerate moves away from legacy positions that no longer align with its long‑term value creation goals.
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