Kraft Heinz (KHC) stock fell on Wednesday after the food and beverage company announced that it will pause plans to split the company in two. Steve Cahillane, CEO of Kraft Heinz, said, “Since joining the company, I have seen that the opportunity is larger than expected and that many of our challenges are fixable and within our control.”
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Cahillane also told investors that his number one priority will be “returning the business to profitable growth, which will require ensuring all resources are fully focused on the execution of our operating plan.” To go along with this, the CEO said that the company won’t incur any dis-synergies in 2026.
As part of the plan to hold off on a split, Kraft Heinz will invest $600 million into marketing, sales, and R&D. Cahillane said that the company’s disciplined spending will allow it to make this investment and experiments with its brands while still generating excess cash.
Kraft Heinz Stock Movement Today
Kraft Heinz stock was down 7.11% in pre-market trading on Wednesday, following a 1.3% rally yesterday. The shares have rallied 2.68% year-to-date but were down 13% over the past 12 months.
Alongside today’s split pause news was Kraft Heinz’s latest earnings report. The company reported adjusted earnings per share of 67 cents, which was better than Wall Street’s estimate of 61 cents but down 20% year-over-year. Revenue of $6.35 billion was below analysts’ estimate of $6.37 billion and fell 3.4% year-over-year.
Is Kraft Heinz Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Kraft Heinz is Hold, based on eight Hold and two Sell ratings over the past three months. With that comes an average KHC stock price target of $24.44, representing a potential 1.85% downside for the shares. Today’s split pause and earnings news will likely result in updated analyst ratings and price targets.
