Kraft Heinz stock declined following multiple developments. The company announced it is pausing its previously planned split into two separate businesses, instead committing $600 million to invest in marketing, sales, and product development starting in 2027. Q4 results showed revenue of $6.35 billion, down 3.4% year-over-year, though non-GAAP earnings per share of $0.67 exceeded analyst expectations. JPMorgan downgraded the stock to underweight with a price target of $22 from $24, citing persistent U.S. volume declines and market share losses. The downgrade noted limited near-term upside and the time required for new marketing investments to show results. Additionally, General Mills reduced its annual sales and profit forecasts due to weaker consumer spending, signaling broader challenges in the consumer staples sector affecting demand.
Read full analysisKraft Heinz stock declined following multiple developments. The company announced it is pausing its previously planned split into two separate businesses, instead committing $600 million to invest in marketing, sales, and product development starting in 2027. Q4 results showed revenue of $6.35 billion, down 3.4% year-over-year, though non-GAAP earnings per share of $0.67 exceeded analyst expectations. JPMorgan downgraded the stock to underweight with a price target of $22 from $24, citing persistent U.S. volume declines and market share losses. The downgrade noted limited near-term upside and the time required for new marketing investments to show results. Additionally, General Mills reduced its annual sales and profit forecasts due to weaker consumer spending, signaling broader challenges in the consumer staples sector affecting demand.
Kraft Heinz is one of the largest packaged food companies in the world, producing iconic brands including Heinz ketchup, Kraft macaroni and cheese, Oscar Mayer, and Lunchables. Berkshire Hathaway remains its largest shareholder with a 27.5% stake, though it recently signaled a potential exit. The company's decision last week to abandon a planned corporate split and instead invest $600 million in a brand turnaround is the central narrative driving today's continued selling pressure.