Kraft Heinz to Split in 2026, Stock Plunges Amid Market Turmoil
Kraft Heinz has announced a significant restructuring, planning to split into two separate entities by fall 2026. The news sent shockwaves through the stock market, with trading volume surging to nearly 28 million shares, more than double the usual daily volume. The stock plummeted by over 7 percent following the announcement, hitting a new yearly low.
The food giant's latest numbers indicate a need for urgent action, with institutional investors swiftly dumping their positions. Major banks such as UBS, Bank of America, Wells Fargo, and Stifel Nicolaus have reduced their target prices for Kraft Heinz stock. Despite the turmoil, Warren Buffett's Berkshire Hathaway, a major shareholder, has not yet commented on the split plans.
The new entities will be 'Global Taste Elevation Co.' and 'North American Grocery Co.' However, investors are questioning the timing and execution risks of this complex split. Morgan Stanley upgraded the stock from 'Underweight' to 'Equal-weight', but most analysts remain skeptical. The analysis of Kraft Heinz's current situation, ahead of their third-quarter results on October 29, 2025, will be crucial for investors deciding whether to buy, sell, or hold their shares.
Kraft Heinz's planned split has sparked a volatile response from the market. As the company prepares to release its third-quarter results, investors will be closely watching to see if the restructuring plans can turn the company's fortunes around.
