9. The Kraft Heinz Company (NASDAQ:KHC)
The Kraft Heinz Company (NASDAQ:KHC) is included in our list of the best Warren Buffett stocks.
Buffett added The Kraft Heinz Company (NASDAQ:KHC) to his portfolio in 2015, purchasing 325.63 million shares worth $22.98 billion, making the stock Warren Buffett’s 2nd-largest holding as of Q3 2015. However, Berkshire’s investment in the stock has shrunk to $7.90 billion as of Q4 2025, reflecting KHC’s share price decline over the years.
The Kraft Heinz Company (NASDAQ:KHC) enjoys the confidence of other hedge funds as well, with 57 out of 1,041 hedge funds remaining bullish on the stock. The combined hedge fund stake in the company totals $8.98 billion as of Q4 2025.
That strong sentiment reflects The Kraft Heinz Company (NASDAQ:KHC)’s portfolio value creation potential, consistent cash generation, improving brand momentum, and investor confidence in CEO Steve Cahillane’s ability to reposition the business.
In its Q4 2025 investor letter, Longleaf Partners Fund, a mutual fund managed by Southeastern Asset Management, highlighted that the market is overly focused on near-term weakness in North American growth while underestimating the value that could be unlocked through a separation of the higher-growth Global Taste Elevation segment from the more stable North American grocery portfolio. As of April 20, 2026, the stock is down roughly 8% year-to-date, following its 24% decline over the past year.
In a Substack newsletter published by SmallCap Value, a bullish thesis described the potential split as a way to eliminate the conglomerate discount, noting that brands such as Heinz, Primal Kitchen, and its condiments portfolio have stronger global positioning and runway in emerging markets.
At the same time, the legacy grocery portfolio continues to act as a dependable source of cash flow to support dividends.
Management’s own comments reinforce that setup.
The Kraft Heinz Company (NASDAQ:KHC)’s new CEO, Cahillane, said he found “underinvestment” but also “a lot of opportunities,” adding that some brands “truly respond to investment” and that he has “a lot of confidence” that Kraft Heinz can return to “solid profitable, organic, margin-enhancing growth.”
Meanwhile, Andre Maciel pointed to “good momentum” in sauces and cream cheese, said the company “flipped to market share growth” in the last 13 weeks (as of Q4 2025 earnings call), and noted momentum continued into 2026.
Together with operational upgrades in AI, manufacturing, and supply chain, the thesis centers on internal improvement, brand reinvestment, and portfolio optionality under CEO investors already view as a proven value creator.
“I came in with the expectation that I would find underinvestment, and indeed, I did find underinvestment. But I also found a lot of opportunities. I have a lot of confidence that we’re gonna be able to return this company to solid profitable, organic, margin-enhancing growth. We would hope to see meaningful results in the back half of the year… a change in trend and bending the trend in market share. As we think about 2027, you know, we would aim to be in a position where we return the company to growth.”
The Kraft Heinz Company (NASDAQ:KHC) produces and markets food and beverage products worldwide. Its portfolio is organized across several consumer-focused platforms, including Taste Elevation, Easy Ready Meals, Substantial Snacking, Desserts, Hydration, Cheese, Coffee, Meats, and other grocery categories.
