The Kraft Heinz Company (NASDAQ:KHC) is included among the Warren Buffett’s 14 Best Dividend Stocks to Buy.
On February 17, Morgan Stanley analyst Megan Alexander Clapp downgraded the company’s price recommendation on The Kraft Heinz Company (NASDAQ:KHC) to $23 from $24. The analyst maintained an underweight rating on the stock. The analyst noted that while the company’s recent restart and continued support from Berkshire Hathaway may reduce some near-term risks, there is still limited visibility on a sustained turnaround. It also lowered the company’s FY26 and FY27 earnings estimates by 18%, reflecting higher planned investments as Kraft Heinz works to address continued pressure on its revenue growth.
A few days earlier, on February 12, Kraft Heinz said it expects capital spending of around $950 million in 2026, an increase from a year earlier. This update came shortly after the company paused its plan to split into two separate businesses and instead opted to increase investment in its operations. Chief executive Steve Cahillane said the decision to halt the breakup was prompted by worsening conditions in the food industry. The move is expected to save around $300 million by 2026. At the same time, Cahillane did not rule out a future separation, noting that the company’s challenges were “fixable and within our control.”
Instead of moving forward with the division, Kraft Heinz plans to focus on strengthening its core business, particularly in the United States, where demand has been weak. The company announced a $600 million investment in marketing and research to help reignite growth and improve performance.
The separation plan was first floated in September, when Kraft Heinz proposed splitting the business into two companies. One entity would focus on edible products, while the other would focus on sauces and spreads. The proposal came after years of slower-than-expected growth since the company was formed through a merger about a decade ago.
The Kraft Heinz Company (NASDAQ:KHC) produces and sells food and beverages worldwide. Its portfolio is organized around eight key platforms: Taste Elevation, Easy Ready Meals, Substantial Snacks, Desserts, Hydration, Cheese, Coffee and Meats.
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