On Saturday, The Kraft Heinz Company (NASDAQ:KHC) drew fresh attention after Berkshire Hathaway CEO Greg Abel backed CEO Steve Cahillane for halting work on a previously announced plan to split Kraft from Heinz. The pause comes as Cahillane tries to reset performance after fourth-quarter adjusted EPS fell 20.2% to 67 cents and management outlined a $600 million push to reignite growth, details that were laid out in planned breakup pause coverage.
CNBC reports Cahillane told investors he has been in the job for five weeks and now believes the company’s issues can be addressed internally, prompting him to stop work tied to the separation that was unveiled last September. Abel said Berkshire supports the board and Cahillane’s choice to redirect attention toward competing more effectively and serving customers.
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The endorsement matters because Berkshire remains Kraft Heinz’s largest holder, with a 27.5% position valued at about $8.1 billion. That ownership link has long made any major strategic shift at Kraft Heinz consequential for Berkshire’s leadership.
The split plan had also irritated Warren Buffett, who told CNBC in a phone call that he was “disappointed,” while suggesting a breakup would not solve the underlying problems. Buffett also said, “It certainly didn’t turn out to be a brilliant idea to put them together, but I don’t think taking it apart will fix it.”
Against that backdrop, Kraft Heinz’s latest quarterly numbers help explain why Cahillane is choosing execution over restructuring. The company posted fourth-quarter sales of $6.354 billion, below the $6.376 billion Wall Street view, as net sales slid 3.4% and organic net sales dropped 4.2%.
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Cahillane’s operating-plan focus is paired with a $600 million investment spanning marketing, sales, research and development, product upgrades, and selective pricing actions. The spending is aimed at speeding up progress in the company’s Taste Elevation portfolio and supporting a recovery in the U.S. business.
In regional results, North America revenue fell 5.4% to $4.70 billion, while International Developed Markets rose 1.8% to $930 million and Emerging Markets increased 4.3% to $724 million. Management also declared a regular quarterly dividend of 40 cents per share, payable March 27, 2026, to holders of record March 6, 2026.
