Kraft Heinz Triggers MACD Death Cross, RSI Overbought on 15-Minute Chart.
ByAinvest
Tuesday, Jul 22, 2025 3:08 pm ET1min read
BAC--
The 2015 merger, valued at $45 billion and backed by Warren Buffett's Berkshire Hathaway, aimed to slash costs and boost international growth. However, nearly a decade later, the combined company has seen its market value collapse by roughly two-thirds, with changing consumer habits and poor performance in key segments undermining the deal's long-term vision [2].
The proposed spinoff would create two distinct companies: one focused on condiments like Heinz ketchup and Philadelphia cream cheese, which pulled in $11.4 billion last year and still holds international growth potential, and another centered around legacy grocery products with flat sales and increased competition from store brands. The latter unit, with $14.5 billion in revenue, faces tougher prospects as consumer preferences shift and demand for processed foods wanes [1].
The move comes as Kraft Heinz is under pressure from investors following the departure of Berkshire Hathaway executives from its board earlier this year, a move widely interpreted as a vote of no confidence. In May, the $33.3 billion company publicly stated it was "evaluating potential strategic transactions to unlock shareholder value," a message many now see as a prelude to a breakup [2].
However, analysts and bankers caution that simply splitting the company may not be enough to boost returns unless each segment eventually attracts buyers willing to pay a premium. "It doesn’t look like there’s a whole lot of upside," said Bank of America analyst Peter Galbo [1].
The breakup of Kellogg Co into separate businesses, with Ferrero and Mars swooping in for major acquisitions, may have served as a model for Kraft Heinz leadership. However, duplicating that success could prove difficult, especially for the Kraft-branded business, which faces a more skeptical consumer base and growing criticism from health advocates, including the "Make America Healthy Again" campaign led by U.S. Health Secretary Robert F. Kennedy Jr. [2].
As sales decline and profit forecasts are lowered, Kraft Heinz is under increasing pressure to act. Whether reversing the merger that once promised to revolutionize packaged food will be enough to turn things around remains to be seen. According to Reuters, even with a split, both businesses may carry visible weaknesses [2].
References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L1N3TE0SV:0-kraft-heinz-seeks-to-revive-old-brands-by-undoing-2015-mega-merger/
[2] https://www.pymnts.com/cpi-posts/kraft-heinz-eyes-major-split-potentially-unwinding-2015-merger/
KHC--
Kraft Heinz's 15-minute chart has triggered a MACD Death Cross and RSI Overbought reading at 07/22/2025 15:00. This suggests that the stock price may continue to decline, as it has risen too rapidly and surpassed the fundamental support level.
Kraft Heinz, the iconic food and beverage company, is reportedly considering a significant restructuring that could reverse its decade-old merger with Heinz. According to Reuters [1], the company is exploring a spinoff of a large portion of its traditional grocery business, including brands like Velveeta and Oscar Mayer, as a last-ditch effort to salvage value from the struggling merger.The 2015 merger, valued at $45 billion and backed by Warren Buffett's Berkshire Hathaway, aimed to slash costs and boost international growth. However, nearly a decade later, the combined company has seen its market value collapse by roughly two-thirds, with changing consumer habits and poor performance in key segments undermining the deal's long-term vision [2].
The proposed spinoff would create two distinct companies: one focused on condiments like Heinz ketchup and Philadelphia cream cheese, which pulled in $11.4 billion last year and still holds international growth potential, and another centered around legacy grocery products with flat sales and increased competition from store brands. The latter unit, with $14.5 billion in revenue, faces tougher prospects as consumer preferences shift and demand for processed foods wanes [1].
The move comes as Kraft Heinz is under pressure from investors following the departure of Berkshire Hathaway executives from its board earlier this year, a move widely interpreted as a vote of no confidence. In May, the $33.3 billion company publicly stated it was "evaluating potential strategic transactions to unlock shareholder value," a message many now see as a prelude to a breakup [2].
However, analysts and bankers caution that simply splitting the company may not be enough to boost returns unless each segment eventually attracts buyers willing to pay a premium. "It doesn’t look like there’s a whole lot of upside," said Bank of America analyst Peter Galbo [1].
The breakup of Kellogg Co into separate businesses, with Ferrero and Mars swooping in for major acquisitions, may have served as a model for Kraft Heinz leadership. However, duplicating that success could prove difficult, especially for the Kraft-branded business, which faces a more skeptical consumer base and growing criticism from health advocates, including the "Make America Healthy Again" campaign led by U.S. Health Secretary Robert F. Kennedy Jr. [2].
As sales decline and profit forecasts are lowered, Kraft Heinz is under increasing pressure to act. Whether reversing the merger that once promised to revolutionize packaged food will be enough to turn things around remains to be seen. According to Reuters, even with a split, both businesses may carry visible weaknesses [2].
References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L1N3TE0SV:0-kraft-heinz-seeks-to-revive-old-brands-by-undoing-2015-mega-merger/
[2] https://www.pymnts.com/cpi-posts/kraft-heinz-eyes-major-split-potentially-unwinding-2015-merger/
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