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This Week's Featured Article As Berkshire Exits Its Kraft Heinz Position, Is the Stock a Sell?By Jordan Chussler. Article Published: 1/27/2026. 
What You Need to Know - Newly entrenched Berkshire Hathaway CEO Greg Abel has decided to share the company’s 28% stake in consumer staples giant Kraft Heinz.
- The move comes after shares of KHC, which are down more than 3% year-to-date, lost 21% in 2025.
- Kraft Heinz has seen top-line contraction for eight consecutive quarters, resulting in analysts assigning the stock a consensus Reduce rating.
Last week, it was reported that newly installed Berkshire Hathaway (NYSE: BRK.B) CEO Greg Abel has begun the process of selling the company's nearly 28% stake—approximately 325 million shares—in consumer staples giant Kraft Heinz (NASDAQ: KHC). Less than one month after Abel succeeded Warren Buffett, the move follows KHC shares slipping more than 3% to start the year, after a 2025 performance that saw the stock slide over 21%. A little-known government task force just wrapped up a 20-year project, and its findings could unlock access to a massive U.S. national asset. Under existing law, everyday Americans may now have a legal path to participate in what some are calling a once-in-a-generation opportunity.
Details are still flying under the radar, but that may not last. See the full briefing and how it works For income investors who have relied on the company's high yield for years, does Berkshire's exit—which marks the end of its 10-year position—mean Kraft Heinz is an automatic sell? The Root of Kraft Heinz's Issues From a pure earnings standpoint, KHC has largely met expectations: the last time the company missed earnings was Q4 2018. But meeting earnings targets does not necessarily equal profitability. Although Kraft Heinz reported profitable quarters surrounding Q2 2025, it posted an enormous loss of more than $7.8 billion in that quarter. That loss was tied to a $9.3 billion non-cash impairment charge and declining sales amid persistent inflation. With roots stretching back to 1869 (Heinz) and 1903 (Kraft), the company has relied on aggressive cost-cutting for years, including the controversial zero-based budgeting strategy. A decade after the merger, the conglomerate is still wrestling with the debt it took on from that deal. To put the challenge in perspective: as of Q3 2025, Kraft Heinz carried more than $19 billion in long-term debt, far exceeding its cash position of $2.1 billion. At the same time, a weak labor market, shifting consumer confidence and pressure from private-label alternatives have pushed cash-strapped shoppers away from name brands toward cheaper store-brand options. Can KHC Reverse Course? In September 2025, Kraft Heinz announced plans to split into two scaled, independent companies. The separation—tentatively naming the businesses Global Taste Elevation Co. and North American Grocery Co.—is expected to be finalized in the second half of 2026. Global Taste Elevation will focus on sauces and condiments, while North American Grocery will concentrate on meals and snacks. The goal is to create more focused, scalable businesses that can pursue their own strategies. The plan has its critics, including Warren Buffett, who objected in part because the split will proceed without a shareholder vote. Over the long term, the two public companies—each trading under its own ticker—may find relief from problems that have dogged Kraft Heinz since the mega-merger. In the short term, however, a swift turnaround looks unlikely. Although the company does not release its full-year and Q4 2025 results until Feb. 11, investors should not be surprised to see quarterly revenue contraction for a ninth consecutive quarter. That trend has contributed to a negative net margin of 17.35%, meaning Kraft Heinz is currently spending more than it earns. Its dividend payout ratio of nearly -43% indicates the company is not generating enough earnings to cover dividend payments, which raises the risk of cuts. Kraft Heinz's dividend currently yields an attractive 6.59%, or $1.60 per share annually, but income investors should be prepared for the possibility that yield could be reduced. What Wall Street Thinks About Kraft Heinz? Analyst sentiment on Kraft Heinz is muted. Of 23 analysts covering the stock, only one rates it a Buy, 17 rate it a Hold and five rate it a Sell. Overall, KHC carries a consensus Reduce rating. The average 12-month price target is $26.16, implying roughly 11% upside from current trading levels. The company scores lower than about two-thirds of peers evaluated by MarketBeat and ranks 73rd out of 149 stocks in the consumer staples sector. Compounding concerns, Kraft Heinz's financial health sits in Tradesmith's Red Zone, where it has been for more than 19 months. Institutional ownership remains above 78%, though that percentage may fall as Berkshire Hathaway's sales are completed. Short interest of 4.37% suggests bears are watching for further downside risk in the year ahead.
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