Latest news with #KraftHeinz
Yahoo
a day ago
- Business
- Yahoo
Is Warren Buffett About To Dump The Highest-Yielding Dividend Stock In Berkshire Hathaway's Portfolio?
Warren Buffett has affinity for dividend stocks, and Kraft Heinz (NASDAQ: KHC) is the highest-yielding dividend stock in his portfolio. Unfortunately for Buffett, Berkshire Hathaway (NYSE: BRK.A, BRK.B) took a $3.76 billion loss on its stake in Kraft Heinz in Q2. Could that lead to Buffett dumping Kraft Heinz entirely? Kraft merged with Heinz in 2015 to become one of America's largest food and beverage manufacturers. Both names are instantly recognizable all over the world for mayonnaise and ketchup. Don't Miss: The same firms that backed Uber, Venmo and eBay are investing in this pre-IPO company disrupting a $1.8T market — Accredited Investors: Grab Pre-IPO Shares of the AI Company Powering Hasbro, Sephora & MGM— That is not the limit of major brands under the Kraft Heinz umbrella, which also includes Velveeta, Oscar Mayer, and Philadelphia Cream Cheese. Berkshire began investing in Heinz in 2013, and its shares were transferred to Kraft Heinz after the merger. It looked like a perfect marriage at the time. Heinz ketchup and Kraft mayonnaise can be found in pantries or refrigerators worldwide. That's why Berkshire's investment in Kraft Heinz looked like a classic buy-and-hold play. It aligned with Buffett's philosophy of investing in iconic brands with a strong market share, such as Coca-Cola (NYSE: KO) and Chevron (NYSE: CVX). Kraft Heinz is currently paying a 5.97% dividend, which is a very respectable yield by any definition. However, a deeper look at Kraft Heinz may explain why major shareholders could be looking to push the eject button. Trending: 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. You can Kraft Heinz's dividend seems impressive at first glance, but it hasn't resulted in the same payout Kraft Heinz shareholders have grown accustomed to. That's because Kraft Heinz stock has been mired in a deep slump since August 2024, when it was trading in the $35 range. The yield for 2024 was 4.73%, but Kraft Heinz stock closed out the year trading around $30 and paid around $1.41 per share. Kraft Heinz shares hit a 52-week low of $25.53 in early July and then rebounded to $28.68 before retreating to around $27 in recent sessions. The 5.97% dividend is impressive on paper. However, passive income investors can't rely on a high-yield dividend if the company's share price doesn't pull out of its slump. Unfortunately for Kraft Heinz, there is no easy way out of its current difficulties. Yes, the company's main products have a strong market share, but the underlying business fundamentals are working against Kraft Heinz. Kiplinger estimates that Kraft Heinz took on $33 billion in debt to complete their $45 billion merger, and it also reports that $20 billion of that debt remains unpaid. That kind of debt load can become an anchor on any company's stock, including Kraft debt's negative effect on Kraft Heinz's stock performance becomes even clearer when examining its stock-price performance since the merger. Kraft Heinz shares were trading around $46 in the honeymoon period after the merger and peaked in the $90 range in mid-2017. Since then, its share price has plunged nearly 70% to the current level. All things considered, it's not a pretty picture, even with a dividend approaching 6%. There is even speculation that Kraft Heinz could be headed for a breakup. With all that swirling in the background, it's not hard to see why Buffett and Berkshire Hathaway may be preparing to liquidate its Kraft Heinz shares, or at least a large portion of them. A massive stock dump by Berkshire could be the straw that broke the camel's back. Read Next: $100k+ in investable assets? – no cost, no obligation. Image: Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Is Warren Buffett About To Dump The Highest-Yielding Dividend Stock In Berkshire Hathaway's Portfolio? originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
Is Warren Buffett About To Dump The Highest-Yielding Dividend Stock In Berkshire Hathaway's Portfolio?
Warren Buffett has affinity for dividend stocks, and Kraft Heinz (NASDAQ: KHC) is the highest-yielding dividend stock in his portfolio. Unfortunately for Buffett, Berkshire Hathaway (NYSE: BRK.A, BRK.B) took a $3.76 billion loss on its stake in Kraft Heinz in Q2. Could that lead to Buffett dumping Kraft Heinz entirely? Kraft merged with Heinz in 2015 to become one of America's largest food and beverage manufacturers. Both names are instantly recognizable all over the world for mayonnaise and ketchup. Don't Miss: The same firms that backed Uber, Venmo and eBay are investing in this pre-IPO company disrupting a $1.8T market — Accredited Investors: Grab Pre-IPO Shares of the AI Company Powering Hasbro, Sephora & MGM— That is not the limit of major brands under the Kraft Heinz umbrella, which also includes Velveeta, Oscar Mayer, and Philadelphia Cream Cheese. Berkshire began investing in Heinz in 2013, and its shares were transferred to Kraft Heinz after the merger. It looked like a perfect marriage at the time. Heinz ketchup and Kraft mayonnaise can be found in pantries or refrigerators worldwide. That's why Berkshire's investment in Kraft Heinz looked like a classic buy-and-hold play. It aligned with Buffett's philosophy of investing in iconic brands with a strong market share, such as Coca-Cola (NYSE: KO) and Chevron (NYSE: CVX). Kraft Heinz is currently paying a 5.97% dividend, which is a very respectable yield by any definition. However, a deeper look at Kraft Heinz may explain why major shareholders could be looking to push the eject button. Trending: 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. You can Kraft Heinz's dividend seems impressive at first glance, but it hasn't resulted in the same payout Kraft Heinz shareholders have grown accustomed to. That's because Kraft Heinz stock has been mired in a deep slump since August 2024, when it was trading in the $35 range. The yield for 2024 was 4.73%, but Kraft Heinz stock closed out the year trading around $30 and paid around $1.41 per share. Kraft Heinz shares hit a 52-week low of $25.53 in early July and then rebounded to $28.68 before retreating to around $27 in recent sessions. The 5.97% dividend is impressive on paper. However, passive income investors can't rely on a high-yield dividend if the company's share price doesn't pull out of its slump. Unfortunately for Kraft Heinz, there is no easy way out of its current difficulties. Yes, the company's main products have a strong market share, but the underlying business fundamentals are working against Kraft Heinz. Kiplinger estimates that Kraft Heinz took on $33 billion in debt to complete their $45 billion merger, and it also reports that $20 billion of that debt remains unpaid. That kind of debt load can become an anchor on any company's stock, including Kraft debt's negative effect on Kraft Heinz's stock performance becomes even clearer when examining its stock-price performance since the merger. Kraft Heinz shares were trading around $46 in the honeymoon period after the merger and peaked in the $90 range in mid-2017. Since then, its share price has plunged nearly 70% to the current level. All things considered, it's not a pretty picture, even with a dividend approaching 6%. There is even speculation that Kraft Heinz could be headed for a breakup. With all that swirling in the background, it's not hard to see why Buffett and Berkshire Hathaway may be preparing to liquidate its Kraft Heinz shares, or at least a large portion of them. A massive stock dump by Berkshire could be the straw that broke the camel's back. Read Next: $100k+ in investable assets? – no cost, no obligation. Image: Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Is Warren Buffett About To Dump The Highest-Yielding Dividend Stock In Berkshire Hathaway's Portfolio? originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
Yahoo
2 days ago
- Business
- Yahoo
Is Berkshire Hathaway Stock a Buy, Sell, or Hold After Earnings?
Berkshire Hathaway (BRK.A) shares experienced a decline after Warren Buffett's conglomerate reported a slight drop in operating earnings, alongside an ongoing selloff of stocks and a cessation of buybacks. The Omaha-based giant saw operating earnings decrease by 3.8% in the second quarter of fiscal 2025. Railroad, energy, manufacturing, service, and retail sectors all posted increased profits year-over-year (YOY), but a decline in insurance underwriting weighed down overall results. Both Class A and B shares of Berkshire fell nearly 3% on Aug. 4 following the earnings release. More News from Barchart Supermicro's Earnings Selloff Explained: Should You Buy SMCI Stock Now? Amazon's $36M Bet on Quantum Computing: What Investors Need to Know AMD Stock Slips After Q2 Earnings, But Here's Why It's a Buying Opportunity Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. Adding to the noise was the substantial write-down of Berkshire's underperforming Kraft Heinz (KHC) stake, marking the conglomerate's first-ever $3.8 billion loss from its 27% stake. The move coincided with reports of Kraft Heinz considering a spinoff of its grocery business. Furthermore, Buffett's cash reserves remained near a record high of $344.1 billion. Berkshire continued its trend as a net seller of stocks for the 11th consecutive quarter, divesting $4.5 billion in equities in the first half of 2025. Interestingly, despite a substantial market correction, Berkshire refrained from any stock repurchases through July 21. While some view this period with apprehension, it does present a potential buying opportunity for others. About Berkshire Hathaway Stock Headquartered in Omaha, Nebraska, Berkshire Hathaway (BRK.B) commands a market capitalization of $1 trillion. The conglomerate and its subsidiaries operate across diverse sectors, including insurance, reinsurance, utilities, energy, freight rail transportation, manufacturing, services, and retailing. Despite its resilience, BRK-B stock has seen pressure in recent months. Over the past 52 weeks, the stock has risen 8%, but the last three months tell a different story, with shares falling 11%. What's more, the stock's 3% dip in just the past month reflects growing caution among investors following the latest earnings data. From a valuation standpoint, the stock is not cheap. BRK-B currently trades at 22.6 times forward adjusted earnings and 2.7 times sales, keeping it well above the industry average. A Closer Look at Berkshire Hathaway's Q2 Earnings On Aug. 2, Berkshire Hathaway posted its Q2 earnings, revealing a 3.8% YOY decline in operating profit to $11.2 billion. The figure reflects results from its wholly owned businesses, including insurance, railroads, energy, manufacturing, and retail. Insurance underwriting income fell 12% from the previous year's quarter to $2 billion, while the Other segment reported a 96% YOY decline to $32 million. However, the broader picture showed pockets of strength. Insurance investment income jumped 1.4% to $3.4 billion. Burlington Northern Santa Fe (BNSF), the company's railroad unit, reported earnings of $1.5 billion as well, reflecting 19.5% growth from the prior year. Manufacturing, service, and retailing revenues together saw a 6.5% uptick to $3.6 billion, while Berkshire Hathaway Energy delivered $702 million in profit, rising 7.2% compared to the same period last year. These gains illustrate how the company's diversified base can provide balance even when one segment stumbles. Looking ahead, analysts expect Berkshire Hathaway's Q3 2025 EPS to decline 18.4% YOY to $3.82. Full-year EPS is forecast to decline 6.7% from the year-ago value to $20.53. However, for fiscal 2026, the bottom line is projected to grow 5% to $21.56. What Do Analysts Expect for Berkshire Hathaway Stock? While recent numbers paint a mixed picture, analysts continue to express cautious optimism around Berkshire Hathaway. The company's deep bench of subsidiaries, many of which stand to benefit from the rise of artificial intelligence (AI) and automation, remains a structural advantage. Over time, these efficiencies could lift margins and earnings across sectors. Berkshire's broad diversification also acts as a built-in hedge against economic shocks. With the threat of a downturn looming and U.S. tariffs yet to fully take effect, investors may increasingly turn to stable, cash-rich businesses. Berkshire's $344 billion in cash positions it to take advantage of dislocations while offering downside protection. As of now, analysts maintain a "Moderate Buy" rating on BRK-B. Of the six analysts covering the stock, two recommend a 'Strong Buy' while four advise to 'Hold.' BRK-B's average price target of $539.25 represents potential upside of 16%. On the more bullish end, the Street-high target of $597 represents 29% potential upside from current levels. On the date of publication, Aanchal Sugandh did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Inicia sesión para acceder a tu cartera de valores
Chicago Tribune
2 days ago
- Business
- Chicago Tribune
Editorial: Brandon Johnson and friends think it's ‘a privilege to do business in Chicago.' Wrong.
In the later years of Richard M. Daley's mayoralty and especially during the tenure of Rahm Emanuel, the city of Chicago served as a magnet for corporate headquarters relocations, particularly from the suburbs. United Airlines moved its headquarters to Willis Tower from Elk Grove Village, shifting thousands of employees to the city. Kraft Heinz consolidated its base in Chicago from Northfield. McDonald's moved its home office to the West Loop from its longtime base in west suburban Oak Brook in 2018. These are just a few of the examples. At the time of these moves, the city was perceived as hot. Even companies that didn't go so far as to relocate their headquarters to Chicago opened satellite offices in the city, believing that they needed a physical presence to attract younger workers. The era we're talking about wasn't that long ago — less than a decade — but it feels like ancient history. Post-pandemic, downtown Chicago lost its mojo and, unlike New York City, has failed to recover adequately in the midst of relentless fiscal crises and poor municipal leadership. Chicago's progressive mayor, Brandon Johnson, routinely describes the corporate decision-makers in his city as the 'ultra-rich' (when he refers to them at all). With Johnson declaring on Tuesday that the city's finances are at a 'point of no return' — whatever that means — the mayor and his progressive allies believe they may have found the answer to their seemingly never-ending quest for massive revenue infusions that affect only the wealthy. A heretofore obscure advocacy group, the so-called Institute for the Public Good, has proposed a new city tax on companies and other large employers that would require them to pay 5% of their total payroll for anyone working in the city who makes $200,000 or more (including noncash compensation like stock options). The group estimates such a levy would generate $1.5 billion a year. Voila! A Chicago budget deficit now topping $1 billion in 2026 would disappear thanks to something this group pitches as a 'tax on the privilege of doing business in Chicago.' The group in a July release said the initiative was based on a similar tax Seattle passed several years ago. Seattle's 'JumpStart tax,' as that city branded the levy, 'has exceeded revenue expectations since 2020 — generating $1.2 billion in four years,' the group claimed. What the Institute for the Public Good neglected to disclose was that revenue from the JumpStart tax fell short of projections in 2024, with Mayor Bruce Harrell acknowledging that major corporations had moved 'thousands of high-paying jobs' out of Seattle to evade the tax. Amazon, for example, shifted jobs from Seattle to Bellevue, Washington. 'Large corporations should pay their fair share … but we also must recognize businesses will make choices based on their bottom line,' Harrell said. Indeed. That's how a competitive economy works. Its rules apply to municipalities just as much as they apply in the business world. The predictable corporate response to Seattle's tax, it should be noted, came even though the rates Seattle is charging are considerably less than the 5% Johnson and some progressive aldermanic allies are contemplating. In addition, the state of Washington doesn't charge an income tax on individuals or businesses. Illinois, of course, already charges a corporate income tax exceeding 9% — the second highest in the country. Imagine how much more quickly Chicago corporate employers would respond to such an egregious tax given the tax burden they already shoulder 'for the privilege of doing business in Chicago.' Such a tax would be aimed straight at the heart of companies that in the past have stuck by this city through thick and thin. Think Northern Trust. Think law firms like Jenner & Block. And, yes, United Airlines. So far, at least. For the last several years, there's been speculation about a potential United headquarters move to Denver, where the company acquired 113 acres near one of its hubs and has major growth plans. United has denied plans to move, but a tax along these lines easily could have Chicago's hometown airline calling another city home. Who could blame them? This tax could also be such a boon for the likes of Evanston that it boosts the market for high-rise office towers, soon to be filled with new offices for companies that used to base their high earners in Chicago. Suburban municipalities will be licking their lips. Already, Chicago in recent years has lost an alarming number of major corporate headquarters to locales perceived as friendlier to business. Three years ago, Caterpillar moved to Texas. Boeing decamped for the Washington, D.C., suburbs the same year. And, perhaps most famously, Citadel, one of the nation's most prominent hedge funds and market makers, left Chicago — where it was born — for Miami in 2022. Citadel's workforce once numbered 1,100 in downtown Chicago, most of whom were compensated above the $200,000 threshold Mayor Johnson now wants to tax. In a few short years, Citadel's Chicago headcount now is at just 250, we understand. Once company bosses make up their minds that the 'privilege of doing business' in a certain place is no longer worth the expense and headache, it doesn't take long for them to act. Progressives who lack respect for billionaires like Citadel CEO Ken Griffin may feel they can afford to sniff at the loss of hundreds of his highly paid employees. But the departure of those 850 Citadel workers has meant hundreds of millions in lost spending power, including tax receipts. Keep chasing folks like that out of town, and that 5% tax soon will need to be raised to something like 7.5% and surely more later. That's how once-flourishing cities like Chicago end up circling the drain.
Yahoo
3 days ago
- Business
- Yahoo
Kraft Heinz (KHC) Launches Limited Edition Ketchup Smoothie With Smoothie King
Kraft Heinz, in collaboration with Smoothie King, recently launched the innovative HEINZ Tomato Ketchup Smoothie, marking a bold entry into the beverage sector. This move underscores a commitment to quality and consumer engagement. Over the past month, KHC's share price experienced a 4.52% increase, aligning with broader market trends, as major indices like the S&P 500 and Nasdaq also posted gains. Despite concerns about tariffs and potential economic impacts, KHC's dividend declarations and share buybacks, along with its partnership with Live Nation, likely added further weight to the company's positive share price trajectory amidst optimal market conditions. We've spotted 2 warning signs for Kraft Heinz you should be aware of. The best AI stocks today may lie beyond giants like Nvidia and Microsoft. Find the next big opportunity with these 20 smaller AI-focused companies with strong growth potential through early-stage innovation in machine learning, automation, and data intelligence that could fund your retirement. The recent partnership between Kraft Heinz and Smoothie King to launch the HEINZ Tomato Ketchup Smoothie could potentially boost consumer engagement and diversify revenue streams. Given the anticipation of product innovation as a driver for growth, this venture aligns well with the company's efforts to capture evolving consumer tastes. However, over the past five years, Kraft Heinz's total return was a 3.34% decline, reflecting underlying challenges in sustaining long-term growth. One year performance reveals underperformance compared to both the US market, which had a 22.4% increase, and the US Food industry, which experienced a 12% decrease. The company's forecasted growth, fueled by initiatives in emerging markets and e-commerce, faces potential uplift with increased market presence from this collaboration. Analysts project a revenue growth of 1% annually and foresee earnings improving to US$3.5 billion by 2028. However, challenges remain with a current high level of debt and weak core market performance. The current share price of US$27.26 is below the consensus price target of US$30.52, presenting a potential upside of approximately 11.4%. But given the limited scope of recent positive impacts on revenue and earnings forecasts, investors should remain cautious, weighing this new venture against broader financial and competitive risks. Examine Kraft Heinz's earnings growth report to understand how analysts expect it to perform. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include KHC. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
