After-hours trading saw Kraft Heinz shares drop 4% as Berkshire Hathaway plans to sell a quarter of its shares. Greg Abel now leads Berkshire as CEO, succeeding Warren Buffett. Buffett criticized Kraft Heinz for underperformance. The company’s strategy focuses on efficiency and brand investment, with 6% of sales dedicated to R&D and marketing through 2034.

Despite concerns about ongoing volume declines, Kraft Heinz’s fair value estimate remains at $51 per share. The company plans to split its business, prioritizing investments in brands and capabilities to stabilize its competitive edge. Anticipated sales growth and operating margins align with management’s targets, driving long-term stability and growth.

Kraft Heinz plans to split its sauces arm from its North American grocery brands to potentially unlock a higher multiple for sauces. The move follows industry trends and aims to boost valuation multiples. This strategic shift reflects the company’s commitment to optimizing its portfolio and maximizing shareholder value.

Read more at Morningstar: Kraft Heinz: Berkshire Sale Doesn’t Sway Our Stance That Shares Are a Bargain