Kraft Heinz faces industry pressure amid divestiture trend
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 02 2026
0mins
Should l Buy KHC?
Kraft Heinz Co shares rose 3.02% and reached a 20-day high amid a broader market context where the Nasdaq-100 is down 0.77% and the S&P 500 is up 0.04%.
The food industry is undergoing significant restructuring, with companies like Kraft Heinz planning to divest underperforming brands to adapt to declining consumer demand for processed goods. This trend reflects a broader movement in the sector as firms aim to regain investor confidence and improve financial performance amid increasing regulatory scrutiny. Analysts note that while divestitures may enhance shareholder value, they must address underlying issues to achieve meaningful financial improvements.
The implications of these developments suggest that Kraft Heinz's strategic decisions to optimize its brand portfolio could position the company for better performance in the long term, despite current market challenges.
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Analyst Views on KHC
Wall Street analysts forecast KHC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KHC is 25.86 USD with a low forecast of 24.00 USD and a high forecast of 28.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
0 Buy
14 Hold
1 Sell
Hold
Current: 24.445
Low
24.00
Averages
25.86
High
28.00
Current: 24.445
Low
24.00
Averages
25.86
High
28.00
About KHC
The Kraft Heinz Company manufactures and markets food and beverage products around the world through its eight consumer-driven product platforms: Taste Elevation, Easy Ready Meals, Substantial Snacking, Desserts, Hydration, Cheese, Coffee, and Meats. The Company has two reportable segments defined by geographic region: North America and International Developed Markets. Its other segments, consisting of West and East Emerging Markets (WEEM) and Asia Emerging Markets (AEM), are combined and disclosed as Emerging Markets. It manufactures its products from a wide variety of raw materials. Its brands include Kraft, Oscar Mayer, Heinz, Philadelphia, Lunchables, Velveeta, Ore-Ida, Capri Sun, Maxwell Apartment, Kool-Aid, Jell-O, Heinz, Golden Circle, Wattie’s, Plasmon, Heinz, ABC, Master, Quero, Kraft, and Pudliszki, among others. The Company’s products are sold through its own sales organizations and through independent brokers, agents, and distributors.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Stock Sale Expectations: Berkshire may look to sell its stake in Kraft Heinz, which has seen a 29% decline in stock price over the past five years, contrasting sharply with the S&P 500's 85% increase, highlighting the inefficacy of this investment.
- Business Restructuring: Kraft Heinz is in the process of breaking up its business to focus on sauces and grocery brands, a move aimed at unlocking value for shareholders, and Berkshire's potential exit could accelerate this process.
- Growth Investment Opportunities: Should the Kraft stock sale occur, Abel would have the opportunity to reallocate funds into growth stocks, particularly in the tech sector, which Buffett may have previously been hesitant to invest in.
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