The Kraft Heinz Company’s shares were trading at $26.90 on September 8th, with trailing and forward P/E ratios of 22.43 and 9.94 respectively. The company recently announced a split into Global Taste Elevation Co and North American Grocery Co after years of disappointing performance due to cost-cutting and lack of investment.

The split aims to streamline operations and focus on growth areas for both businesses. Global Taste Elevation Co will include global sauce brands like Heinz and Philadelphia, targeting $15.4 billion in revenue and 26% margins by 2024. North American Grocery Co will manage brands like Oscar Mayer and Jell-O, aiming for $10.4 billion in revenue and over 20% margins.

The reorganization is intended to improve capital allocation, brand investment, and operational focus, potentially unlocking hidden value for shareholders. The split will be tax-free to shareholders, with GTE yet to appoint a CEO while Carlos Abrams-Rivera will lead NAG. Berkshire Hathaway’s 27% stake signals cautious optimism.

Read more at Yahoo Finance: The Kraft Heinz Company (KHC): A Bull Case Theory