KHC Stock Surges as Kraft Heinz Announces Strategic Split - Analysts Bullish on Move

Kraft Heinz pulls the ultimate corporate maneuver—splitting itself in two while Wall Street scrambles to reposition.

The Breakdown

No legacy data, no historical baggage—just pure strategic repositioning. The market's reacting exactly how you'd expect when a food giant decides to cleave itself apart.

Analysts are leaning in, dissecting every angle of this corporate divorce. Some call it genius—others just another attempt to squeeze value from a stagnant portfolio. Because nothing says 'innovation' like splitting a company instead of, you know, actually innovating.

Active restructuring. Aggressive repositioning. Zero nostalgia. Exactly what you'd expect from a sector that'd rather divide than conquer.

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Wall Street is cautious about the consumer staples giant’s decision, as investors are concerned about the future growth potential of both businesses and the path back to profitability. Nearly a decade ago, Kraft Heinz was formed through the merger of Kraft Foods and Heinz.

On September 2, KHC stock fell nearly 7% as investors initially reacted negatively to the announcement. However, shares traded this morning as the market began to reassess the long-term benefits of the split.

Analysts Say ‘Hold’ KHC Stock for Now

Morgan Stanley analyst Megan Alexander upgraded KHC stock from a Sell rating to a “Hold” and raised the price target to $29 from $28, implying 11.5% upside. Alexander noted that her prior bearish thesis has “largely played out,” and current earnings estimates now appear “more reasonable.” She added that while earnings per share (EPS) growth is expected to remain under pressure in fiscal 2026, Kraft Heinz’s planned separation should help limit the downside.

Meanwhile, Mizuho Securities analyst John Baumgartner maintained his Hold rating and price target of $29, citing that the corporate split “likely strengthens the floor under the stock.” However, ongoing concerns about the company’s growth could cap near-term upside, he added.

At the same time, Jefferies analyst Scott Marks expressed concerns about “the true growth and margin potential for both new companies.” Marks reiterated his Hold rating on KHC stock with a $28 price target, implying 7.6% upside potential from current levels. He noted that profitability in the North American Grocery segment continues to decline, with brands facing long-term weaker consumption trends. Marks concluded that while the split may simplify the portfolio and enable more focused strategies, uncertainties remain around sustaining profitability.

Is KHC a Good Stock to Buy?

Overall, analysts remain cautious about Kraft Heinz’s long-term outlook. On TipRanks, KHC stock has a Hold consensus rating based on 14 Holds and one Sell rating. The average Kraft Heinz price target of $28.72 implies 10.4% upside potential from current levels. Year-to-date, KHC stock has lost 11.6%.