A Major Shareholder Shift Looms for Kraft Heinz

Kraft Heinz US5007541064

The investment landscape for Kraft Heinz is facing a potential seismic change. Berkshire Hathaway, the conglomerate led for decades by Warren Buffett and now under CEO Greg Abel, is reportedly considering divesting its entire stake in the food giant. This holding amounts to a substantial 27.5% of the company, or approximately 325.4 million shares. The market's immediate reaction was negative, with the stock falling as much as 5.6% in pre-market trading on Wednesday from its previous close of $23.76.

This development has sparked a clear split in analyst opinion. The dominant concern for some is the sheer technical overhang a sale of this magnitude would create. Jefferies adjusted its price target downward from $24 to $23, maintaining a "Hold" recommendation. BNP Paribas Exane took a more bearish stance, downgrading the stock to "Underperform" with a $22 target, citing the looming supply pressure as a primary factor.

In stark contrast, Morningstar maintains a long-term fundamental view. Its analysts reaffirmed a fair value estimate of $51 per share, arguing that the underlying quality of Kraft Heinz's business—including expected operating margins in the low-20% range and solid earnings—remains unchanged by a shift in ownership. They point to the current dividend yield, which exceeds 7%, as evidence of significant undervaluation.

The Weight of a Potential Block Trade

For years, Berkshire Hathaway has been the anchor shareholder, a constant presence since the 2015 merger that created the current entity. The potential exit marks a notable strategic pivot under its new leadership. The central question unnerving investors is how the market can absorb such a vast volume of shares without exerting further downward pressure on the price. In pre-market activity, shares briefly touched $22.92.

Awaiting Clarity Amid Earnings Calendar

Uncertainty is likely to persist until details regarding the method and timing of any potential disposal become clear. Investors are now left to balance the attractive fundamentals and high yield against the technical threat of a major liquidation. The next significant corporate event is Kraft Heinz's earnings report for Q4 and the full year 2025, scheduled for February 11, 2026, which may provide further context for the investment thesis.