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GSBR Research

We are an independent equity research provider focused on covering global markets. The aim of the research is to provide an unbiased view of the fundamentals of the company.

Event-Driven

<ul>
<li>Kraft Heinz’s decision to split into Global Taste Elevation Co. and North American Grocery Co. is a strategic move intended to recalibrate the Company amid flattening growth.</li>
<li>We value Kraft Heinz on a sum-of-the-parts (SOTP) basis. Global Taste Elevation is valued at 10x 2025E adjusted EBITDA, while North America Grocery is valued at 7.8x 2025E adjusted EBITDA.</li>
<li>We expect the spin-off to unlock value for shareholders as Global Taste Elevation Co will get better multiple post separation.</li>
</ul>


Kraft Heinz’s decision to split into Global Taste Elevation Co. and North American Grocery Co. is a strategic move intended to recalibrate the Company amid flattening growth.
We value Kraft Heinz on a sum-of-the-parts (SOTP) basis. Global Taste Elevation is valued at 10x 2025E adjusted EBITDA, while North America Grocery is valued at 7.8x 2025E adjusted EBITDA.
We expect the spin-off to unlock value for shareholders as Global Taste Elevation Co will get better multiple post separation.


Kraft Heinz (Nasdaq: KHC) Spin-Off to Create Value; See Upside From Current Levels

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<ul><li>On September 2, 2025, Kraft Heinz (KHC) announced that it will be breaking up into two companies.</li><li>The news comes a decade after the infamous merger of two of the biggest names in packaged foods that was orchestrated by Warren Buffett and Brazilian private equity firm 3G Capital Partners.</li><li>North American Grocery Co would encompass many of the traditional Kraft products.</li></ul>

On September 2, 2025, Kraft Heinz (KHC) announced that it will be breaking up into two companies.The news comes a decade after the infamous merger of two of the biggest names in packaged foods that was orchestrated by Warren Buffett and Brazilian private equity firm 3G Capital Partners.North American Grocery Co would encompass many of the traditional Kraft products.

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Kraft Heinz’s decision to split into two independent companies by 2026 marks a dramatic unraveling of the 2015 megamerger orchestrated by Warren Buffett’s Berkshire Hathaway and 3G Capital.</li><li>Once heralded as a union of food titans to unlock economies of scale, the split reflects a strategic pivot to specialization over breadth.</li><li>The new structure will separate the $15 billion global “Taste Elevation” unit—home to iconic brands like Heinz ketchup and Kraft Mac & Cheese—from the $10 billion North American grocery staples business that includes Oscar Mayer, Lunchables, and Kraft Singles.</li></ul>

Kraft Heinz’s decision to split into two independent companies by 2026 marks a dramatic unraveling of the 2015 megamerger orchestrated by Warren Buffett’s Berkshire Hathaway and 3G Capital.Once heralded as a union of food titans to unlock economies of scale, the split reflects a strategic pivot to specialization over breadth.The new structure will separate the $15 billion global “Taste Elevation” unit—home to iconic brands like Heinz ketchup and Kraft Mac & Cheese—from the $10 billion North American grocery staples business that includes Oscar Mayer, Lunchables, and Kraft Singles.

Kraft Heinz’s Big Breakup: A $25 Billion Shake-Up That May Not Please Warren Buffett!

<ul><li>Kraft Heinz reported results for the second quarter that were consistent with expectations, showcasing an improvement in year-over-year top-line performance.</li><li>This was driven by strategic investments in product superiority and manufacturing capabilities.</li><li>The company emphasized initiatives aimed at enhancing long-term shareholder value, though it remains cautious about the impact of strategic transactions, such as potential business separations, which could lead to increased costs and dis-synergies.</li></ul>

Kraft Heinz reported results for the second quarter that were consistent with expectations, showcasing an improvement in year-over-year top-line performance.This was driven by strategic investments in product superiority and manufacturing capabilities.The company emphasized initiatives aimed at enhancing long-term shareholder value, though it remains cautious about the impact of strategic transactions, such as potential business separations, which could lead to increased costs and dis-synergies.

Kraft Heinz Company: Brand Growth System Expansion To Achieve Sustainable Volume Growth & Enhance Brand Appeal!

<ul><li>Kraft Heinz (KHC) is currently evaluating a plan to spin off a significant portion of its grocery business into a new, distinct entity. The WSJ reported that this transaction is likely to occur.</li><li><p>The news comes a decade after the infamous merger of two of the biggest names in packaged foods that was orchestrated by Warren Buffett and Brazilian private equity firm 3G Capital Partners.</p></li><li>This new entity, which can be referred to as “SpinCo,” would encompass many of the traditional Kraft products. The remaining company, or “RemainCo,” would strategically focus its operations on faster-growing segments, specifically sauces, spreads, and condiments.</li></ul>

Kraft Heinz (KHC) is currently evaluating a plan to spin off a significant portion of its grocery business into a new, distinct entity. The WSJ reported that this transaction is likely to occur.The news comes a decade after the infamous merger of two of the biggest names in packaged foods that was orchestrated by Warren Buffett and Brazilian private equity firm 3G Capital Partners.This new entity, which can be referred to as “SpinCo,” would encompass many of the traditional Kraft products. The remaining company, or “RemainCo,” would strategically focus its operations on faster-growing segments, specifically sauces, spreads, and condiments.

United States

The Kraft Heinz Company provides food services. The Company offers foods including ketchup, sauces, meals, snacks, and other food products.

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Kraft Heinz Co (KHC US)

Kraft Heinz (Nasdaq: KHC) Spin-Off to Create Value; See Upside From Current Levels

Kraft Heinz's split into two companies should unlock shareholder value. Our estimate suggests upside from current levels.

GSBR Research

Weekly Update (CON, HNZ, BRSL)

On September 2, 2025, Kraft Heinz (KHC) announced that it will be breaking up into two companies. The news comes a decade after....

Richard Howe

Kraft Heinz’s Big Breakup: A $25 Billion Shake-Up That May Not Please Warren Buffett!

Kraft Heinz’s decision to split into two independent companies by 2026 marks a dramatic unraveling of the 2015 megamerger orchestrated by Warren...

Baptista Research

Kraft Heinz Company: Brand Growth System Expansion To Achieve Sustainable Volume Growth & Enhance Brand Appeal!

Kraft Heinz reported results for the second quarter that were consistent with expectations, showcasing an improvement in year-over-year top-line...

Baptista Research

Weekly Update (AAF, NLOP, KHC)

Kraft Heinz (KHC) is currently evaluating a plan to spin off a significant portion of its grocery business into a new, distinct entity. The WSJ...

Richard Howe

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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Kraft Heinz (Nasdaq: KHC) Spin-Off to Create Value; See Upside From Current Levels

​Kraft Heinz's split into two companies should unlock shareholder value. Our estimate suggests upside from current levels.

GSBR Research

Weekly Update (CON, HNZ, BRSL)

On September 2, 2025, Kraft Heinz (KHC) announced that it will be breaking up into two companies. The news comes a decade after....

Richard Howe

Kraft Heinz’s Big Breakup: A $25 Billion Shake-Up That May Not Please Warren Buffett!

Kraft Heinz’s decision to split into two independent companies by 2026 marks a dramatic unraveling of the 2015 megamerger orchestrated by Warren...

Baptista Research

Kraft Heinz Company: Brand Growth System Expansion To Achieve Sustainable Volume Growth & Enhance Brand Appeal!

Kraft Heinz reported results for the second quarter that were consistent with expectations, showcasing an improvement in year-over-year top-line...

Baptista Research

Weekly Update (AAF, NLOP, KHC)

Kraft Heinz (KHC) is currently evaluating a plan to spin off a significant portion of its grocery business into a new, distinct entity. The WSJ...

Richard Howe

Kraft Heinz's split into two companies should unlock shareholder value. Our estimate suggests upside from current levels.