The Kraft Heinz Company (NASDAQ: KHC) has attracted attention from billionaire investor Mario Gabelli, who indicated he is considering purchasing shares of the company in light of its recent plans to split into two separate entities. Gabelli, the chairman and CEO of GAMCO Investors, shared his insights during a recent segment on CNBC, expressing interest in acquiring the stock “in pieces.”
Gabelli’s comments come as Kraft Heinz prepares for a significant transition aimed at unlocking shareholder value. The company’s restructuring could potentially enhance its market valuation, with Gabelli suggesting that the individual parts could be worth “as high as in the mid-30s.” He noted, “It’s not that we don’t like or dislike [the split]. We’re just observing it. We own it. We didn’t buy any recently. We’re thinking about doing that.”
Kraft Heinz, a major player in the global food and beverage sector, has faced challenges in a sluggish industry. In its second quarter 2025 investor letter, the Longleaf Partners Fund described the company as a detractor for the quarter. Despite these hurdles, the fund highlighted a shift towards premium offerings, including well-known brands such as Heinz, Philadelphia, and Ore-Ida, which they believe could lead to overlooked growth opportunities.
Gabelli’s interest is further underscored by speculation surrounding Berkshire Hathaway, a significant shareholder in Kraft Heinz, which is rumored to be considering reducing its stake. The Longleaf Partners Fund suggested that this situation is more nuanced than it appears, hinting at the potential for upward movement depending on the strategic choices made by Kraft Heinz.
While Gabelli acknowledges the risks associated with investing in Kraft Heinz, he also compares its potential to other sectors, particularly artificial intelligence (AI) stocks. He expressed a belief that some AI investments may offer more substantial returns in a shorter time frame compared to Kraft Heinz.
As the global food and beverage industry continues to navigate challenges, the upcoming changes at Kraft Heinz may present new opportunities for investors like Gabelli to capitalize on the company’s evolving landscape. With the market closely watching these developments, it remains to be seen how the restructuring will ultimately impact Kraft Heinz’s performance.