Kraft Heinz (KHC) Faces Continued Pressure as Morgan Stanley Cuts Price Target

Vardah Gill

Mon, February 23, 2026 at 10:40 AM GMT+9 2 min read

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The Kraft Heinz Company (NASDAQ:KHC) is included among the 14 Best Warren Buffett Dividend Stocks to Buy.

Kraft Heinz (KHC) Faces Continued Pressure as Morgan Stanley Cuts Price Target

On February 17, Morgan Stanley analyst Megan Alexander Clapp lowered the firm’s price recommendation on The Kraft Heinz Company (NASDAQ:KHC) to $23 from $24. The analyst kept an Underweight rating on the stock. The analyst noted that while the company’s recent reset and continued backing from Berkshire Hathaway may reduce some near-term risk, there is still limited visibility into a sustained turnaround. She also lowered the firm’s FY26 and FY27 earnings estimates by 18%, reflecting higher planned investments as Kraft Heinz works to address ongoing pressure on its revenue growth.

A few days earlier, on February 12, Kraft Heinz said it expects capital spending of about $950 million in 2026, an increase from the previous year. This update came shortly after the company paused its plan to split into two separate businesses and instead chose to increase investment in its operations. CEO Steve Cahillane said the decision to halt the breakup was driven by worsening conditions in the food industry. The move is expected to save around $300 million in 2026. At the same time, Cahillane did not rule out a future separation, noting that the company’s challenges were “fixable and within our control.”

Rather than moving forward with the split, Kraft Heinz plans to focus on strengthening its core business, particularly in the U.S., where demand has been weak. The company announced a $600 million investment in marketing and research to help revive growth and improve performance.

The separation plan was first introduced in September, when Kraft Heinz proposed dividing the business into two companies. One entity would focus on grocery products, while the other would concentrate on sauces and spreads. The proposal followed years of slower-than-expected growth since the company was formed through a merger about a decade ago.

The Kraft Heinz Company (NASDAQ:KHC) produces and sells food and beverage products globally. Its portfolio is organized around eight key platforms: Taste Elevation, Easy Ready Meals, Substantial Snacking, Desserts, Hydration, Cheese, Coffee, and Meats.

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