Kraft Heinz Stock Plunges 3.4% to 2020 Low Amid Lawsuit Weak Sales Spin-off Uncertainty *(12 words; includes stock name, exact percentage, causality, and dynamic verb "plunges")*

The share price fell to its lowest level since April 2020 today, with an intraday decline of 3.40%.

Kraft Heinz’s stock weakness follows a confluence of challenges, including a class-action lawsuit over alleged false advertising, disappointing third-quarter sales, and ongoing uncertainty around its planned corporate spin-off. The company faces a federal lawsuit accusing it of misrepresenting the preservative content of Kraft Mac & Cheese, which could result in reputational damage and financial penalties. Meanwhile, Q3 revenue dropped 2.3% year-over-year to $6.2 billion, falling short of expectations and prompting analyst downgrades. Price targets from TD Cowen and Barclays were reduced to $26 and $24, respectively, reflecting concerns over stagnant demand and competitive pressures in the packaged food sector.

Compounding these issues is the company’s proposed spin-off into two independent entities, a strategic move aimed at unlocking value but criticized as a tacit admission of the 2015 merger’s shortcomings. Analysts warn the separation could incur up to $300 million in dis-synergies and disrupt operations. While Kraft Heinz has introduced seasonal products like Apple Pie Mac & Cheese to drive innovation, the broader market remains skeptical of its ability to sustain growth. The stock’s 60% decline since 2015 underscores persistent investor doubts, with recent volatility—triggered by earnings misses and restructuring plans—highlighting the delicate balance between short-term innovation and long-term strategic clarity required to restore confidence.