This Warren buffett is a sharp stock after major shaking
This Buffett stock has been one of the worst performers for the last decade.
Craft Heinz (NASDAQ: KHC) Stocks plunged about 7% on Tuesday after announced that food companies were divided into Tuesday.
Ten years after the merger of two famous brands, Heinz and Kraft, to form Kraft Heinz in 2015, marriage ends in divorce, and both investors and Wall Street analysts are not excited.
One of the biggest investors in this stock is Berkshire Hathaway and has a 27% stake in the company. When Buffett helped Buffett to engage in the merger in 2015 with 3G Capital, Warren Buffett was a rare Christ.
Craft Heinz is the ninth largest position in Berkshire Hathaway portfolio. Berkshire has a $ 9 billion stake in Craft Heinz shares and accounted for about 3%of the portfolio.
Craft Heinz was one of the worst stocks since the merger. It has decreased by 15% year -on -year and an average annual return of -9% over the last decade.
In an interview with CNBC, Buffett said he was disappointed with the division and did not think the problem would be solved.
Two companies
On Tuesday, this company announced that it would be divided into two separate independent public trading companies. The idea is to maximize the functions and brands of each company. To this end, the merger is designed to reduce operational complexity and both companies can distribute resources more effectively toward strategic priorities.
The names of the two companies are not yet confirmed, but are now classified as follows.
Global taste., This is described as A “Leader of Taste Contation and Shelf-Shelf-Shelf-Shelf-Shelf-Shelf-Shelf-Shelf-Shelf-Shelf-Shelf-Shelf-Shelf-Shelf-Shelf-Shelf-Shelf-Shelf-Stable Heinz, Philadelphia Cream Cheese, Kraft Mac & Cheese.,,, Master and ABC brand. The board of directors is currently looking for a candidate to lead the company.
North American grocery store, In 2024, about $ 10.4 billion in net sales and North American staple portfolio of $ 2.3 billion adjustment, this company includes OSCAR Mayer, Kraft Singles, Maxwell House, Ore-IDA, Capri Sun and Lunchables Brands. Kraft Heinz’s current CEO, Carlos Abrams-Rivera, will be led.
Miguel Patricio, director of Kraft Heinz, said, “By separating it into two companies, it allocates the right level of attention and resources to make each brand’s potential to create better performance and long -term shareholder value.
Mizuho analyst John Baumgartner said in Paris that the division is likely to strengthen the bottom under the stock. But the question of the company’s growth potential still remains. Mizuho has a neutral rating and a $ 29 price goal.
It is not surprising that Craft Heinz is one of the most paragraphs in August.
The division occurs in the second half of 2026.
