It’s happening right now…
A turning point that the former CEO of Google says is:
“The most important thing that’s going to happen in about 500 years – maybe 1,000 years of human society – and it’s happening in our lifetime.”
Yet very few are fully warning you of what’s coming.
Instead you’re kept distracted by the inane trivialities of “bread and circuses” while the very fabric of our lives erodes beneath our feet.
As one former U.S. Treasury Secretary says:
“When your great-grandchild writes the history of this period, my guess is that stuff about Donald Trump and Xi will be the second or third story.”
The first story they write about?
You and I have never seen anything like it before…
The dot-com collapse, global financial crisis, COVID-19 pandemic… nothing we’ve seen in our lifetime holds a candle to what’s coming next.
In short, I believe we are about to be plunged into a period of dramatic, almost unimaginable change.
And you need to be ready, or risk being left behind.
Porter Stansberry
As Berkshire Exits Its Kraft Heinz Position, Is the Stock a Sell?
Author: Jordan Chussler. Publication Date: 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 initiated the process to sell the company’s nearly 28% stake—or approximately 325 million shares—in consumer staples giant Kraft Heinz (NASDAQ: KHC).
The move, which occurred less than one month after Abel took the reins from his predecessor, Warren Buffett, comes after KHC shares opened the year down more than 3%, following a 2025 decline of more than 21%.
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But for income investors who have long relied on the company’s high yield, does Berkshire’s exit—which marks the end of its 10-year position—make Kraft Heinz an automatic sell?
The Root of Kraft Heinz’s Issues
From a strictly earnings perspective, KHC has largely delivered on paper: the last time the company missed earnings expectations was Q4 2018. However, earnings results do not necessarily equate to sustainable profitability.
Although 2025 included two profitable quarters, in Q2 Kraft Heinz posted an enormous loss of more than $7.8 billion. That loss was tied to a $9.3 billion non-cash impairment charge, as well as falling sales driven by lingering inflation.
The company, whose roots date back to 1869 (Heinz) and 1903 (Kraft), has relied on aggressive cost-cutting measures for years, including the controversial zero-based budgeting strategy. A decade after the Kraft-Heinz merger, the food conglomerate is still struggling to shed the debt it took on in that deal.
To put that challenge in perspective, as of Q3 2025 the company carried more than $19 billion in long-term debt, easily surpassing its cash position of $2.1 billion.
At the same time, a weak labor market, shifting consumer confidence, and ongoing U.S. dollar devaluation have pushed cash-strapped shoppers away from national brands and toward private-label (store brand) alternatives.
Can KHC Reverse Course?
In September 2025, Kraft Heinz announced plans to split into two scaled, focused independent companies. The division into two entities—tentatively named Global Taste Elevation Co. and North American Grocery Co.—is expected to be finalized in the second half of 2026.
Under the plan, Global Taste Elevation will concentrate on sauces and condiments, while North American Grocery will focus on meals and snacks.
The proposal has its critics, most notably Warren Buffett, who voiced concerns that the split is not being submitted for a shareholder vote.
Over the long term, the two separately traded companies could be better positioned to address issues that have burdened Kraft Heinz since the merger. In the near term, however, there is little evidence a turnaround is imminent.
While the consumer staples firm does not report its full-year and Q4 2025 results until Feb. 11, a ninth consecutive quarterly revenue contraction would not be surprising. That trend has contributed to a negative net margin of 17.35%, indicating the company is currently spending more than it earns.
Meanwhile, its dividend payout ratio of nearly -43% shows the company is not generating enough earnings to fully cover its dividend payments, which raises the risk of future cuts. Currently, Kraft Heinz’s dividend yields an attractive 6.59%, or $1.60 per share annually, but income investors should be prepared for that yield to be reduced.
What Wall Street Thinks About Kraft Heinz?
Sentiment on Kraft Heinz is tepid. Of the 23 analysts currently covering the stock, 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 for KHC is $26.16, implying roughly 11% upside from current levels. The company ranks below two-thirds of the firms evaluated by MarketBeat and sits 73rd out of 149 stocks in the consumer staples sector. Compounding the concern, Kraft Heinz’s financial health has been in the Red Zone, according to Tradesmith, for more than 19 months.
Institutional ownership remains high at more than 78%, though that percentage will likely fall once Berkshire Hathaway completes its sale of KHC shares. Short interest of 4.37% suggests bears are watching for further downside in the year ahead.
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