Berkshire Hathaway Exits Kraft Heinz Stake in Major Portfolio Shift

Kraft Heinz US5007541064

In a decisive move signaling a significant loss of confidence, Warren Buffett's Berkshire Hathaway has filed to divest its entire stake in Kraft Heinz. SEC documents dated January 21 reveal the investment conglomerate plans to sell 325.4 million shares, representing over one-quarter of the company's total share capital. This exit concludes an investment held for more than a decade and comes at a moment of considerable challenge for the packaged food giant.

The decision appears to be a clear verdict on the company's future direction. Since its peak in 2017, Kraft Heinz shares have plummeted approximately 70% in value. The move by CEO Greg Abel is widely seen as tidying up the portfolio of his predecessor, Warren Buffett, who had himself labeled the 2015 merger of Kraft and Heinz a mistake. Berkshire had already recorded a $3.76 billion impairment on the investment in the summer of 2025.

The timing delivers an immediate blow to newly appointed Kraft Heinz CEO Steve Cahillane, who assumed the role on January 1, 2026. He now faces a stark vote of no confidence from one of the company's most prominent shareholders. Market analysts are aligning with this skeptical view, as evidenced by recent rating adjustments:

• BNP Paribas Exane downgraded the stock to "Underperform," setting a price target of $22.
• JPMorgan reduced its rating to "Neutral" with a $24 target, citing persistent volume pressure expected through the end of 2026.
• Jefferies maintained a "Hold" but cut its price target to $23, criticizing the company's "unclear separation strategy."

Operational performance offers little solace. The company's U.S. retail sales declined by four percent year-over-year in the fourth quarter.

A Vote Against the Planned Split

Central to the current uncertainty is CEO Cahillane's strategy to split Kraft Heinz into two separate publicly traded entities in the second half of 2026. The plan would create "Global Taste Elevation Co." for faster-growing sauces and condiments, and "North American Grocery Co." for established staple brands in the U.S. market.

Observers interpret Berkshire's registered exit as a direct expression of doubt in this separation plan's value-creation potential. Rather than waiting to see the split implemented, Berkshire is choosing to cut its losses, even at current depressed share prices.

Upcoming Earnings to Intensify Scrutiny

The next critical test arrives on February 11, 2026, when Kraft Heinz reports its fourth-quarter and full-year 2025 results before the market opens. Analysts are forecasting earnings per share of $0.61 on revenue of $6.38 billion.

Until the disposal is complete, selling pressure is likely to persist. A key concern for the market is the method of Berkshire's exit. If the shares are sold on the open market rather than through a controlled secondary offering, the resulting liquidity overhang could stifle any potential for a near-term share price recovery.