In a significant development that sent ripples through the market, Kraft Heinz's stock experienced a noticeable downturn during after-hours trading. This shift in market value was primarily triggered by the revelation that Berkshire Hathaway, a major stakeholder, plans to divest a substantial portion of its holdings in the food and beverage conglomerate. The announcement underscores a pivotal moment for both entities, especially given the recent leadership transition at Berkshire Hathaway, with Warren Buffett's retirement.
This strategic move by Berkshire Hathaway, involving the potential sale of up to 325 million shares, represents a critical juncture for Kraft Heinz. It not only affects the immediate market performance of KHC stock, pushing it towards unprecedented lows, but also signals a re-evaluation of investment strategies by one of the most influential holding companies globally. As Kraft Heinz prepares to release its fourth-quarter and full-year financial results for 2025, all eyes will be on how these developments influence its future trajectory and investor confidence.
Berkshire Hathaway's Strategic Divestment and Market Impact
The recent announcement by Berkshire Hathaway to reduce its stake in Kraft Heinz has had a pronounced effect on the latter's stock performance. Following the market close on Tuesday, Kraft Heinz shares entered after-hours trading with a notable decline, reflecting investor reaction to the news. This decision by Berkshire Hathaway, which held a significant 27.5% stake in Kraft Heinz, comprising approximately 325.63 million shares as of September 30, 2025, marks a substantial portfolio adjustment. The planned divestment of up to 325.44 million shares suggests a strategic repositioning by the investment giant.
This move is particularly noteworthy as it occurs in the wake of Warren Buffett's retirement as CEO of Berkshire Hathaway at the close of 2025, with Greg Abel assuming leadership. While not explicitly stated as a direct consequence of this transition, the timing suggests a potential recalibration of investment priorities under new leadership. The considerable size of the offering—representing nearly Berkshire's entire stake—indicates a significant shift in its long-term view of Kraft Heinz. The immediate market response saw KHC stock drop by over 5% in after-hours trading, approaching historical low valuations. This downturn places additional scrutiny on Kraft Heinz as it nears its earnings report for the fourth quarter and full-year 2025, where analysts anticipate earnings of 61 cents per share. The market will be closely watching for further details on how this divestment impacts Kraft Heinz's valuation and its strategic outlook.
Kraft Heinz's Market Position Amidst Shareholder Shift
The divestment plan by Berkshire Hathaway has put Kraft Heinz's market position under intense pressure, with its shares teetering near all-time lows in the extended trading session. This situation highlights the sensitivity of stock values to major shareholder actions, particularly when involving an investor of Berkshire Hathaway's stature. The market's immediate reaction underscores concerns regarding the implications of such a significant reduction in ownership by a long-standing and influential investor. Kraft Heinz, formed through the merger of H.J. Heinz and Kraft Foods in 2015, has been a component of Berkshire's portfolio since its inception, making this divestment a symbolic and material event.
The current market dynamics for Kraft Heinz are further complicated by the impending release of its financial results for the fourth quarter and full-year 2025, scheduled for February 11. Investors and analysts will be keenly analyzing these results to gauge the company's financial health and its ability to navigate a challenging market environment, especially in light of the significant shareholder shift. The expected earnings of 61 cents per share for the quarter will be a critical metric in determining investor confidence and the company's near-term trajectory. As the stock struggles to find support, the upcoming earnings report will be crucial in shaping market perception and potentially stabilizing or further impacting its valuation in the wake of Berkshire Hathaway's strategic exit.