Kraft Heinz announced in September 2025 its intention to split into two separately listed companies, thereby reversing its 2015 megamerger, orchestrated by billionaire investor Warren Buffett.
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Kraft-Heinz announced Wednesday that it was suspending work on its previously announced plans to spin off the company.
CEO Steve Cahillane, who joined Kraft Heinz in January, said in a statement that many of the company’s problems were “fixable and within our control.”
“My number one priority is to return the business to profitable growth, which will require ensuring all resources are fully focused on executing our operational plan,” he said. “As a result, we believe it is prudent to suspend separation-related work and we will not experience any further dissynergies related to this year.”
Kraft Heinz also plans to invest $600 million to fuel the turnaround of its U.S. operations. The company plans to spend the money on its marketing, sales, and research and development. The investment will also serve “product superiority and selected pricing,” according to Cahillane.
In September, the company announced plans to break up, undoing much of the blockbuster $46 billion merger a decade ago that created one of the world’s largest food companies.
While investors initially cheered the merger, the luster faded as the combined company’s U.S. sales fell and several of its iconic brands, like Oscar Mayer and Maxwell House, were written off. For at least six years, Kraft Heinz has been in turnaround mode, trying to revive its U.S. business.
Warren Buffett, who helped craft the deal, said he was disappointed by the decision to part ways. Berkshire Hathawayunder new CEO Greg Abel, has since taken formal action to liquidate its 28% stake in Kraft Heinz.
“We support the decision by CEO Steve Cahillane and the Kraft Heinz Board of Directors, under Steve’s new leadership, to suspend work on the previously planned separation of the company. As a result, management can commit to strengthening Kraft Heinz’s ability to compete and serve its customers,” Abel said in a statement.
For years, Kraft Heinz underinvested in its brands, and executives appeared unwilling to change that strategy, Piper Sandler analyst Michael Lavery wrote in a note to clients Wednesday.
“That appears to have changed with the hiring of Steve Cahillane, who has reshaped KHC’s 2026 plans (and proposed the split) in a much more significant way than we expected in just the six weeks since he took over as KHC CEO,” Lavery said. “We still believe this is a ‘show me’ story, and that this is only the first step in putting KHC in a position for sustainable growth, which still seems unlikely in the near future.”
Kraft Heinz announced the hiring of Cahillane in December. He previously ran Kellogg until its own dissolution, then ran Kellanova, itself a spinoff, until its sale to Mars.
Not everyone on Wall Street was convinced by Wednesday’s reversal. Kraft Heinz shares fell as much as 5% in early trading before rebounding to trade essentially flat.
“Investors will view this unfavorably because it indicates that companies are not in a strong enough condition to operate on their own, and it is unclear when they will,” TD Cowen analyst Robert Moskow wrote in a note to clients Wednesday.
Wednesday’s announcement comes alongside the release of Kraft Heinz’s quarterly results. The company’s earnings topped Wall Street estimates, but its revenue fell short of analysts’ forecasts.