The Kraft Heinz Company (KHC) Fell Due to Sluggish Food and Beverage Industry

Longleaf Partners, managed by Southeastern Asset Management, released its “Partners Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund returned 5.33% in the second quarter, compared to the S&P 500’s 10.94% return and the Russell 1000 Value’s 3.79% return. The firm’s stock price performance was volatile, but its confidence in future returns grew as the quarter progressed. Since markets have recovered and portfolio holdings remain high-quality and discounted, the firm believes maintaining its current cautious stance, as reflected in the recent strong results during turbulent times, is prudent, despite not fully matching recent market highs. For more information on the fund’s best picks in 2025, please check its top five holdings.

In its second quarter 2025 investor letter, Longleaf Partners Fund highlighted stocks such as The Kraft Heinz Company (NASDAQ:KHC). The Kraft Heinz Company (NASDAQ:KHC) manufactures and markets food and beverage products. The one-month return of The Kraft Heinz Company (NASDAQ:KHC) was 12.48%, and its shares lost 12.44% of their value over the last 52 weeks. On July 23, 2025, The Kraft Heinz Company (NASDAQ:KHC) stock closed at $28.94 per share, with a market capitalization of $34.252 billion.

Longleaf Partners Fund stated the following regarding The Kraft Heinz Company (NASDAQ:KHC) in its second quarter 2025 investor letter:

“The Kraft Heinz Company (NASDAQ:KHC) – Global food and beverage producer Kraft Heinz was a detractor for the quarter. Despite a sluggish food and beverage industry, the company’s performance is underpinned by a quality mix shift towards premium offerings like Heinz, Philadelphia and Ore-Ida, among other power brands, that we believe the market is overlooking. There is also speculation that large shareholder Berkshire Hathway is considering decreasing its position, although we believe this situation is more nuanced. Further upside could materialize from the outcome of an ongoing strategic alternatives exploration.”

The Kraft Heinz Company (KHC) Is Removing Synthetic Dyes From Its Food, Says Jim Cramer

A closeup of an assembly line worker inspecting a newly produced jar of condiments and sauces.

The Kraft Heinz Company (NASDAQ:KHC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 46 hedge fund portfolios held The Kraft Heinz Company (NASDAQ:KHC) at the end of the first quarter, which was 43 in the previous quarter. While we acknowledge the risk and potential of The Kraft Heinz Company (NASDAQ:KHC) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than The Kraft Heinz Company (NASDAQ:KHC) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered The Kraft Heinz Company (NASDAQ:KHC) and shared the list of best alternative meat stocks to invest in according to analysts. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.