Warren Buffett's company, Berkshire Hathaway, is the largest shareholder in Kraft Heinz.In a move that many thought could be coming, Kraft Heinz's (KHC 1.17%) management team has chosen to split into two. One company, Global Taste Elevation Co., will comprise the faster-growing sauces and condiments products. The other company, North American Grocery Co., will house the North American grocery business.The move comes after shares of Kraft Heinz have struggled immensely, down over 22% in the past five years. ...

此次拆分预计将在2026年下半年完成，公司已为此预留了高达3亿美元的成本。 卡夫亨氏公司宣布将拆分为两家独立上市公司：一家负责食品杂货(年销售额约104亿美元，包括Oscar Mayer和Lunchables等品牌)，另一家负责酱料及涂抹酱(年销售额约154亿美元，包括Heinz、Philadelphia 和Kraft Mac&Cheese等品牌)。 伯克希尔.哈撒韦公司的沃伦.巴菲特对此次拆分表示"失望"，认为拆分本身并不能解决公司面临的问 题。 公司首席执行官Carlos Abrams-Rivera将领导食品杂货业务，公司正在寻找酱料业务的首席执行官。 ...

Core Viewpoint - Kraft Heinz is planning to split into two publicly traded entities by the latter half of 2026, reversing the 2015 merger, which has been criticized for its poor performance [2][3] Group 1: Industry Context - The spin-off reflects challenges in the packaged food industry, including stagnant demand, changing consumer preferences, and increased competition from private labels [3] - The stock price saw minimal change, increasing by only 1% in pre-market trading, while shares have decreased by 21% over the past year, indicating skepticism from investors [3] Group 2: Company Structure Post-Split - The new structure will consist of Global Taste Elevation Co., which includes higher-growth brands like Heinz and Kraft Mac & Cheese, and North American Grocery Co., focusing on U.S. staples like Oscar Mayer and Kraft Singles [4] - Pre-split, Kraft Heinz was trading at approximately 1.3× sales, lower than competitors like Mondelez (2.3×) and Kellanova (2.2×), but slightly above Conagra (1.0×) and Campbell Soup (1.1×) [5] Group 3: Financial Projections - Management anticipates a 60/40 revenue split between the two new entities, projecting Global Taste to generate around $16 billion and North American Grocery about $11 billion based on a 2024 run rate of $27 billion [6][7] - If Global Taste achieves Mondelez-like multiples of 2.0–2.3× revenue, its market cap could reach $32–$36.8 billion, while North American Grocery might trade at 1.0–1.1×, resulting in a combined value of $43–$49 billion, compared to Kraft Heinz's current valuation of $33 billion [7] Group 4: Market Considerations - The market typically does not assign top-tier multiples to both halves of a breakup; if Global Taste trades at 1.6–1.8× and North American Grocery at 1.0×, the total value could drop to $37–$40 billion [8] - The success of the split hinges on the ability of both companies to achieve consistent growth and restore investor confidence, with proponents viewing it as a chance for independent valuation and skeptics fearing it may expose deeper structural issues [9]

Company Overview - Kraft Heinz will split into two companies, reversing much of the $46 billion merger from a decade ago that created one of the largest food companies globally [1] - The split aims to enhance capital allocation, prioritize initiatives, and drive scale in promising areas, according to Miguel Patricio, executive chair of the board [4] New Company Structure - The first new company will focus on shelf-stable meals, including brands like Heinz, Philadelphia, and Kraft mac and cheese, projected to have $15.4 billion in net sales for 2024, with approximately 75% of sales from sauces, spreads, and seasonings [2] - The second new company will consist of a "scaled portfolio of North America staples," including Oscar Mayer, Kraft singles, and Lunchables, with an estimated $10.4 billion in net sales for 2024 [3] Historical Context - The merger that created Kraft Heinz in 2015 was initiated by Berkshire Hathaway and 3G Capital, initially well-received by investors, but faced challenges as U.S. sales declined [4] - The company faced significant issues, including a subpoena from the SEC regarding accounting policies, a 36% dividend cut, and a $15.4 billion write-down on major brands [5] - Following these challenges, Kraft Heinz underwent leadership changes, additional write-downs, and divestitures of certain business units, including its cheese unit and nuts division [6] Industry Trends - The split aligns with a broader trend in the food industry, where companies are pursuing breakups to divest from slower-growth categories and enhance investor appeal [7] - Other companies, such as Keurig Dr Pepper and Kellogg, have also pursued similar strategies to separate their business units for better performance [7]

Core Insights - Kraft Heinz reported non-GAAP EPS of $0.69, exceeding analyst estimates of $0.64, while GAAP revenue reached $6.35 billion, slightly above the consensus of $6.27 billion, despite year-over-year declines in both metrics [1][2] - The company faced challenges in core North American volume and persistent margin pressure, highlighted by a significant non-cash impairment charge of $9.3 billion [1][8] Financial Performance - Non-GAAP EPS decreased by 11.5% year-over-year from $0.78 to $0.69 [2] - GAAP revenue fell by 1.9% from $6.48 billion to $6.35 billion [2] - Adjusted gross profit margin declined by 1.4 percentage points to 34.1% [2] - Adjusted operating income decreased by 7.5% from $1.38 billion to $1.28 billion [2] - Free cash flow increased by 28.2% year-over-year, reaching $1.50 billion [2] Business Overview - Kraft Heinz produces a wide range of food products and beverages, including cheese, sauces, cold cuts, and ready meals, with a strong portfolio of recognized brands [3] Strategic Focus - The company's strategy emphasizes growth in emerging markets, managing raw material costs, and leveraging brand strength through effective marketing and product innovation [4] Market Trends - Organic net sales declined by 2.0% in Q2 FY2025, primarily due to a 2.7 percentage point drop in volume/mix [6] - North America experienced a 3.3% decrease in net sales, with a 3.4 percentage point decline in volume/mix [6] - Emerging markets showed a positive trend with net sales up 4.2% and organic net sales rising 7.6% [7] Margin Analysis - Adjusted gross profit margin fell to 34.1%, driven by rising input costs that outpaced cost-efficiency initiatives [8] - The significant impairment charge overshadowed underlying profitability, resulting in a net loss for the quarter [9] Shareholder Returns - The company paid out $951 million in dividends and repurchased $435 million in shares year-to-date for FY2025 [10] - Capital expenditures decreased by 21.8% year-over-year, indicating a focus on shareholder returns [10] Future Guidance - Kraft Heinz expects organic net sales to decline by 1.5% to 3.5% and adjusted operating income to fall by 5% to 10% in FY2025 [11] - The adjusted EPS range for FY2025 is projected at $2.51 to $2.67 [11] - The effective tax rate on adjusted EPS is anticipated to rise to 26% due to new global minimum tax requirements [11]

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].