Notice: Kraft Heinz Pauses Planned Split as New CEO Cahillane Pledges $600 Million Turnaround

Kraft Heinz announced on 11 February 2026 that it is pausing work on its previously announced plans to split into two separately traded companies, CNBC reported. The decision reverses the September 2025 announcement to break up the company, which would have undone much of the blockbuster $46 billion merger from a decade ago that created one of the world's biggest food companies.

What the company announced

Chief executive Steve Cahillane, who joined Kraft Heinz in January 2026, said many of the company's issues are "fixable and within our control." He stated: "My number one priority is returning the business to profitable growth, which will require ensuring all resources are fully focused on the execution of our operating plan. As a result, we believe it is prudent to pause work related to the separation and we will no longer incur related dis-synergies this year."

• Planned split into two companies paused indefinitely
• $600 million investment pledged for US business turnaround (marketing, sales, R&D, product superiority and select pricing)
• Steve Cahillane joined as CEO in January 2026; hiring announced December 2025
• Cahillane previously led Kellogg's breakup and headed Kellanova until its sale to Mars
• Original split announced September 2025, reversing the 2015 $46 billion Kraft-Heinz merger
• Berkshire Hathaway (28% stake) under new CEO Greg Abel supports the pause
• Shares fell as much as 5% in early trading before recovering to flat

Investor and analyst reaction

Greg Abel, CEO of Berkshire Hathaway — which has held a 28% stake and had begun formal steps toward unwinding it — said: "We support CEO Steve Cahillane and the Kraft Heinz Board of Directors' decision, under Steve's new leadership, to pause work on the company's previously planned separation. As a result, management can commit to strengthening Kraft Heinz's ability to compete and serve customers."

Piper Sandler analyst Michael Lavery noted that Cahillane "has reshaped KHC's 2026 plans (and proposed split) much more significantly than we had expected in just the six weeks since he started as KHC's CEO." However, TD Cowen analyst Robert Moskow warned: "Investors will view this negatively because it indicates that the businesses are not in strong enough condition to operate on a standalone basis, and it is uncertain when they will."

Background

The 2015 merger of Kraft Foods and H.J. Heinz was masterminded by Warren Buffett and Brazilian private equity firm 3G Capital. While investors initially cheered the deal, the combined company's US sales slipped and it wrote down many iconic brands including Oscar Mayer and Maxwell House. Kraft Heinz has been in turnaround mode for at least six years. The announcement came alongside quarterly earnings that topped Wall Street estimates on profit but missed on revenue.

Company details

The Kraft Heinz Company (NASDAQ: KHC), headquartered in Chicago, Illinois and Pittsburgh, Pennsylvania. Official website: kraftheinzcompany.com.