When most investors think about Warren Buffett and consumer goods, they picture iconic brands doing well and producing steady dividends. They think of old-school, long-term investing at its best. The reality is often messier.
Kraft Heinz (KHC +0.36%) has been one of Berkshire Hathaway‘s (BRKA +0.45%)(BRKB +1.20%) more troubled investments. But Berkshire’s involvement with this stock right now offers a great reason why now may be a “ridiculously cheap” time for new investors to get exposure to what is a changing consumer staples growth stock.
Image source: Getty Images.
Buffett’s bad deal might be your best starting point
Berkshire Hathaway owns roughly 27.5% of Kraft Heinz, a stake once worth far more than its current value. Berkshire’s investment in the iconic food and beverage producer is widely viewed as a rare misstep for Buffett. Since the 2015 merger that created the company, Kraft Heinz’s shares have fallen sharply, reflecting shifting consumer tastes and the hangover from aggressive cost‑cutting and leverage that resulted from the merger.
In 2025, Kraft Heinz announced plans to split into two separate companies by 2026: Global Taste Elevation Co., which would house global sauces and brands like Heinz and Kraft Mac & Cheese, and North American Grocery Co., which would hold North American staples like Oscar Mayer, Kraft Singles, and Lunchables.
In February of this year, the company put its planned breakup into two stand-alone businesses on hold as it works to stabilize declining sales and market share. Under CEO Steve Cahillane, the company is redirecting its focus toward a $600 million R&D and marketing push to strengthen its brands, leaving the separation on pause indefinitely.
Pausing the split actually simplifies the Kraft Heinz thesis. Instead of trying to parse two new stocks and guess at breakup math, investors can focus on whether a single, well‑capitalized food company can fix itself under a new CEO with a clear mandate. The company is putting millions exactly where a consumer brand house should be spending if it wants to reignite growth and defend shelf space. The turnaround path is straightforward: stabilize volumes, rebuild brand relevance, and let even modest growth rerate a stock the market has largely written off.
What also makes this interesting now is that Berkshire’s stance appears to be evolving under new leadership. A regulatory filing in January 2026 suggested that Berkshire might sell its entire Kraft Heinz stake, sparking concerns about a full exit. More recent commentary suggests Berkshire CEO Greg Abel has decided that Berkshire is not rushing for the door. For new investors, that tension means the market may be over‑discounting a business that is actively reshaping itself.
Today’s Change
(0.36%) $0.08
Current Price
$21.97
Key Data Points
Market Cap
$26B
Day’s Range
$21.75 – $22.11
52wk Range
$21.04 – $30.12
Volume
11M
Avg Vol
16M
Gross Margin
33.41%
Dividend Yield
7.31%
Why the stock looks “ridiculously cheap” today
I’m intentionally not dwelling on Kraft Heinz’s latest quarter, because the more important story is structural. The shares have already absorbed years of disappointment, from write‑downs to stagnating sales. When a company announces a breakup after a decade of underperformance, investors tend to assume the worst. But this breakup “pause” is actually a good sign.
There are clear risks here, though. Execution missteps in the split could create dis‑synergies or higher overhead costs. Consumer trends could continue to move away from processed foods, limiting the upside for North American Grocery. And if Berkshire ultimately decides to sell down its stake, that overhang could pressure the stock in the short term. None of these issues should be ignored.
For investors who look to Berkshire’s portfolio for ideas, Kraft Heinz is not the obvious comfort pick. It’s a turnaround inside a potential breakup, wrapped in a changing relationship with Berkshire. That complexity is precisely why the stock may be cheap relative to its long‑term potential.
This is a stock for patient investors willing to own a consumer goods business through a messy transition. It belongs, if at all, in the value part of a portfolio: a modest-sized position, held for years, with the understanding that the upside depends on management’s ability to make Global Taste Elevation and North American Grocery stand together.
