Kraft Heinz’s market value is down by three-fifths since the companies merged in 2015. The dismal situation offers a look at the shifting fortunes of big food https://t.co/9TsVPx0fEp ...

Hidden among Kraft Heinz’s brightly colored assets exists an unusual source of value: an over-funded pension plan https://t.co/Y8mMY0ESP9 ...

Core Viewpoint - The Kraft Heinz Company is considering a spin-off of its grocery business while retaining its high-growth condiments and sauces segment, with the spin-off entity potentially valued at $20 billion based on favorable business prospects [2][8]. Spin-Off Details - Post-separation, the remaining company (RemainCo) will focus on faster-growing, consumer-aligned brands, including iconic products like Heinz ketchup and Grey Poupon mustard, emphasizing innovation and global market expansion [3][6]. - The spin-off entity (SpinCo) will consist of traditional packaged food brands that have seen slower growth, such as Kraft cheese and Oscar Mayer meats, aiming to stabilize these legacy brands through operational efficiencies and targeted marketing [4][6]. Historical Context - Kraft Heinz was formed in July 2015 through a merger between Kraft Foods Group and H.J. Heinz Company, but has struggled with shifting consumer preferences, leading to a strategic review aimed at unlocking shareholder value [5][9]. - The company has been divesting underperforming brands and has seen a significant decline in stock value since the merger, with a 60% drop in stock price and a loss of nearly $57 billion in market capitalization [7][9]. Financial Implications - The spin-off could unlock significant value, potentially allowing the combined entities to exceed Kraft Heinz's current market capitalization of approximately $32 billion, providing clearer visibility of each segment's performance [8][9]. Industry Context - The restructuring of Kraft Heinz mirrors broader industry trends, similar to Kellogg's recent split, which has led to significant stock gains for both resulting companies [9].

To squeeze more value out of its varied food businesses, Kraft Heinz shareholders may have to consider a sale, writes @AndreaFelsted (via @opinion) https://t.co/71KObqnvHM ...

Kraft Heinz's bond investors are positioning for what the company will do next as it considers spinning off its slower-growing brands, looking for probable losers and winners https://t.co/k7h6BnLALO ...

Warren Buffett touted the chance to bring "iconic brands together" in 2015 when he backed the creation of Kraft Heinz. The plans to split up many of those brands a decade later represent a rare flop for the famed investor https://t.co/EEtj97dmgP ...

Core Viewpoint - Kraft Heinz Co. is reportedly considering a significant corporate restructuring, potentially splitting into two distinct entities: a grocery division and a "Taste Elevation" segment focused on sauces and spreads [1][4]. Group 1: Corporate Restructuring - The potential breakup would mark a pivotal moment for Kraft Heinz, formed by the 2015 merger of Kraft and Heinz [1][7]. - The restructuring aligns with recent strategic announcements aimed at enhancing shareholder value [1][4]. Group 2: Market Reactions - The prospect of a split has received mixed reactions, with some analysts questioning its effectiveness in addressing the company's underlying business challenges [2][6]. - Bank of America Securities analyst Peter T. Galbo maintains an Underperform rating with a $29 price forecast, citing soft fundamentals and valuing the stock at 11x estimated 2026 earnings [3][6]. Group 3: Segment Financials - The Taste Elevation segment, which includes brands like Heinz and Philadelphia, accounts for approximately 45% of trailing 12-month sales, or $11 billion, and is likely to remain with the parent company [5]. - The Grocery segment, making up the remaining 55% of sales (around $14 billion), includes brands such as Kraft, Oscar Mayer, and Lunchables, and is expected to be spun off [5]. Group 4: Analyst Insights - Galbo estimates only modest upside from a potential breakup, projecting a 6.9% increase to the $29 price forecast, and believes that a split alone will not significantly enhance shareholder value without broader operational improvements [6]. - Oscar Mayer is flagged as a strategic uncertainty, with potential sale discussions to companies like JBS or Alfa, although it may also remain within the Grocery segment to avoid de-synergies [7]. Group 5: Other Analyst Updates - Wells Fargo analyst Chris Carey has maintained an Equal-Weight rating and raised the price forecast from $27 to $29 [8]. - As of the last check, KHC shares were trading higher by 2.23% to $27.75 [8].

What the breakup of Kraft Heinz could mean for ketchup, Oscar Mayer hot dogs and Velveeta https://t.co/DtbhZkIGDB ...

Shares of Craft Hind in focus this morning. That follows a Wall Street Journal report late last week that the company is planning to break itself up by spinning off a chunk of its grocery business into a new entity that could be valued at up to $20 billion. According to the report, the remaining company would house sauce brands like Hines Ketchup and Gray Poop Mustard.Craft Hind was formed in 2015 after Bergkshire Hathway and Brazilian private equity firm 3G Capital combined Craft Foods with HJ Hines. Those ...

Kraft Heinz is preparing to break itself up, a decade after an infamous merger of two of the biggest names in packaged foods that was orchestrated by Warren Buffett and Brazilian private-equity firm 3G Capital Partners https://t.co/Fcz1Mmc90t ...