Berkshire May Sell 325 Million Kraft Heinz Shares After $3.8 Billion Write-Down
Berkshire Hathaway filed an SEC notice indicating it may sell up to 325,442,152 Kraft Heinz shares, equal to 27.5% of outstanding stock. Greg Abel conveyed disappointment over Kraft Heinz’s planned 2026 split after Berkshire took a $3.8 billion write-down in Q2, triggering a 6% share drop.
1. Berkshire Hathaway Weighs Full Stake Sale
In a regulatory filing on January 20, Berkshire Hathaway indicated it may sell up to 325.4 million shares of Kraft Heinz, representing its entire 27.5% ownership. The move follows a $3.8 billion after-tax writedown of the stake in Q2 2025 and comes shortly after Warren Buffett’s successor, Greg Abel, conveyed disappointment in Kraft Heinz’s planned corporate split. Berkshire did not comment further, but the filing marks one of the largest potential single-investor divestitures in the company’s history.
2. Share Performance Suffers Fresh Decline
Kraft Heinz shares fell by 6% on the day following the filing, extending a multiyear slide that has eroded nearly 70% of value since the 2017 merger. The stock’s recent drop pushed it to the lowest levels seen since March 2020, with overhead resistance at the 60-day moving average capping any sustained recovery. High call-option activity, measured by an 11.42 ten-week call/put volume ratio, suggests retail traders have been unusually optimistic, but the threat of a large-scale sell-off from its largest shareholder appears to have overwhelmed that sentiment.
3. Breakup Plan Fails to Excite Investors
Kraft Heinz announced in September that it would split into two separate businesses by the second half of 2026 in an effort to streamline operations. Despite management’s assertion that the breakup will reduce complexity and unlock shareholder value, five of six analysts tracked by Visible Alpha maintain neutral ratings, with only one recommending a sale. Investor confidence has remained subdued, as the stock continues to trade below its pre-merger highs and the company navigates evolving consumer preferences and stiff competition in the packaged-foods sector.
4. Analyst Downgrades and Volatility Signals
Following the Berkshire filing, BNP Paribas Exane downgraded Kraft Heinz from neutral to underperform, trimming its target from $24 to $22. Options traders appear to be pricing in muted volatility, with the Schaeffer’s Volatility Index at 26%, above just 25% of readings over the past year. The combination of a potential block sale, tepid analyst ratings and the company’s operational overhaul suggests that near-term trading risks remain elevated for Kraft Heinz shares.