Kraft Heinz pauses plans to split into 2 companies, says its problems
are 'fixable'
[February 12, 2026] By
DEE-ANN DURBIN
Kraft Heinz said Wednesday it's pausing its plans to split into two
companies.
Steve Cahillane, a former Kellogg Co. chief who became CEO of Kraft
Heinz on Jan. 1, said he wants to ensure that all of the company's
resources are focused on profitable growth.
“I have seen that the opportunity is larger than expected and that many
of our challenges are fixable and within our control,” Cahillane said in
a statement.
The company's shares were flat in morning trading Wednesday as Kraft
Heinz reported lower quarterly and annual results. Investors are likely
concerned that Kraft Heinz believes its businesses aren't strong enough
to stand on their own, said Robert Moskow, an analyst with TD Cowen, in
a research note.
Kraft Heinz announced in September it was splitting into two companies a
decade after a merger of the brands created one of the biggest food
manufacturers on the planet.
One of the companies would include stronger-selling brands such as
Heinz, Philadelphia cream cheese and Kraft Mac & Cheese. The other would
include slower-selling brands like Maxwell House, Oscar Mayer, Kraft
Singles and Lunchables.
At the time, Kraft Heinz said it expected the split to be finalized in
the second half of this year. The company hired Cahillane, who presided
over a similar breakup at Kellogg Co. in 2023, in December.
But on Wednesday, Kraft Heinz said it will pivot from the split and
invest $600 million in marketing, sales and product development.
“We are confident in the opportunity ahead and believe this investment
will accelerate our return to profitable growth,” Cahillane said.
Kraft Heinz said Wednesday its net sales fell 3% to $6.35 billion in the
October-December period. That was lower than the $6.37 billion Wall
Street forecast, according to analysts polled by FactSet. Sales fell 5%
in North America but rose internationally.
Kraft Heinz's net income fell 69.5% to $651 million in the fourth
quarter. Adjusted for one-time items, the company earned 67 cents per
share, which beat analysts' forecast of 61 cents.
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A sign shows the company's logo at the Kraft Heinz facility in
Lowville, N.Y., on Wednesday, Feb. 11, 2026. (AP Photo/Cara Anna)
 The path to the merger of Kraft and
Heinz began in 2013, when billionaire investor Warren Buffett teamed
up with Brazilian investment firm 3G Capital to buy H.J. Heinz Co.
At the time, the $23 billion deal was the most expensive ever in the
food industry.
As a combined company, Kraft Heinz wanted to
capitalize on its massive scale. But shifting tastes complicated
those plans, with households seeking out less processed foods and
switching to cheaper store brands.
Kraft Heinz tried to follow those trends. In 2021, the company sold
both its Planters nut business and its natural cheese business,
vowing to reinvest the money into higher-growth brands like P3
protein snacks. But the company continued to struggle.
Kraft Heinz’s net revenue has fallen every year since 2020, when it
saw a pandemic-related bump in sales. In April, Kraft Heinz lowered
its full-year sales and earnings guidance, citing weaker customer
spending in the U.S. and the impact of President Donald Trump’s
tariffs.
Over the years, Buffett said he had come to realize that the
company’s competitive moat around its brands wasn’t as strong as he
thought. Two representatives from Buffett's investment company,
Berkshire Hathaway, resigned from the Kraft Heinz board last spring,
and Berkshire later took a $3.76 billion write-down on its
Kraft-Heinz investment. Buffett said he was disappointed in Kraft
Heinz’ plan to split in two.
Buffett's successor at Berkshire, Greg Abel, may now be seeking to
unload its stake in the company altogether. Late last month, Kraft
Heinz warned investors in a regulatory filing that Berkshire
Hathaway may be interested in selling its 325 million shares.
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