A Major Shareholder Reconsiders Its Stake in Kraft Heinz

For years, Berkshire Hathaway has been viewed as a steadfast, long-term investor in Kraft Heinz. That perception is now being fundamentally challenged. The investment conglomerate has taken a formal step that opens the door to a potential full exit, raising significant questions about the future confidence in the packaged food giant.

Regulatory Filing Paves the Way for Potential Sale

The situation developed when Kraft Heinz submitted a prospectus supplement to the U.S. Securities and Exchange Commission (SEC) on January 20, 2026. This document registers the potential sale of up to 325.44 million common shares currently held by Berkshire Hathaway. This block represents approximately 27.5% of the company’s outstanding shares.

A critical distinction is that this is not a secondary offering by Kraft Heinz to raise new capital. The company will not receive any proceeds from a sale of these shares. Instead, the registration establishes the necessary legal framework for Berkshire to divest its entire holding, either through market sales or private placements, at its discretion and at any time.

Market participants interpret this move as a clear signal. Under the leadership of Berkshire’s new CEO, Greg Abel, a portfolio reassessment appears to be underway, and Kraft Heinz seems to have lost its status as a core holding. While an immediate, full divestment is not guaranteed, the possibility means the stock’s long-term anchor investor could depart.

Market Reaction and Share Price Pressure

Investor response was swiftly negative. The mere prospect of over a quarter of the company’s equity potentially flooding the market has heightened concerns about an overhang of supply. Such overhang risks are traditionally a bearish factor for a share price, as potential buyers anticipate lower prices amid increased selling pressure.

The stock closed at $23.52 in the latest session. This represents a weekly decline of over 3%, and the share price has fallen nearly 17% over the preceding 12-month period. Consequently, the equity remains under significant pressure, trading approximately 22% below its 52-week high.

Should investors sell immediately? Or is it worth buying Kraft Heinz?

Strategic Reassessment and Analyst Caution

This potential exit does not come as a complete surprise. Foreshadowing this move, Berkshire Hathaway had already written down the value of its Kraft Heinz investment by $3.76 billion in the summer of 2025. That impairment signaled growing dissatisfaction with the investment’s performance.

Concurrently, equity researchers have been adjusting their outlooks:

• On January 16, 2026, Morgan Stanley downgraded the stock to “Underweight,” setting a price target of $24. The firm cited increasing competitive risks in the U.S. food sector.
• Jefferies reduced its price target from $24 to $23 on January 20, 2026, though it maintained a “Hold” recommendation.

Collectively, these actions paint a picture of growing caution regarding Kraft Heinz’s earnings prospects, compounded by the uncertainty of a major shareholder transition. The stock’s historically attractive dividend yield, currently around 6.7%, offers little near-term solace and is increasingly viewed as compensation for heightened risk rather than a sign of strength.

Upcoming Financial Report as a Key Test

The next major milestone for the company is imminent. Kraft Heinz is scheduled to release its fourth-quarter and full-year 2025 financial results before the market opens on Wednesday, February 11, 2026. The current market consensus projects quarterly earnings of $0.61 per share.

This report will serve as a crucial test on two fronts. First, it must demonstrate whether the core business can maintain stability in a fiercely competitive environment. Second, it will reveal whether solid operational performance is enough to restore investor confidence shaken by Berkshire Hathaway’s potential withdrawal.