We just covered the 10 Best Stocks to Buy Now According to Warren Buffett. Kraft Heinz Co (NASDAQ:KHC) ranks #9 (see the 5 best stocks to buy now here).
Kraft Heinz Co (NASDAQ:KHC) has been one of the losers in the Berkshire portfolio. The stock is down about 40% over the past five years. Berkshire Hathaway’s new CEO Greg Abel called the stock’s performance “disappointing” in a recent CNBC interview. He said Berkshire now plans to keep its stake in the company, dropping its earlier plan to sell after Kraft Heinz Co (NASDAQ:KHC) proposed a split. The change came after Kraft paused the split.
Kraft Heinz Co (NASDAQ:KHC) bull case has some ifs, buts and requires patience. The company plans a $600 million reinvestment plan to modernize its brands and regain market share. CEO Steve Cahillane plans to invest in marketing, R&D, and product quality to make the company’s brand stick with modern customers. Kraft Heinz Co (NASDAQ:KHC) also expects to surpass $2.5 billion in gross efficiencies by the end of 2026.
While Abel didn’t sound too enthusiastic about Kraft Heinz Co (NASDAQ:KHC) in the CNBC interview, he did praise the company’s plan not to split. Here is what he said:
“So, for Steve to come in and say we’re pausing it, there’s opportunities within Kraft Heinz to fix things and get the business back on track and then he’ll evaluate things — we thought that was absolutely the right approach.”
Longleaf Partners Fund explained why they are optimistic about KHC for the long term in their investor letter. Read it here.
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