Billionaire investor Mario Gabelli has expressed interest in purchasing shares of the Kraft Heinz Company (NASDAQ: KHC) as the company plans to reorganize into two separate entities. Speaking on a recent program on CNBC, Gabelli indicated he would be a “buyer” of Kraft Heinz in parts, reflecting confidence in the company’s potential despite broader challenges in the food and beverage sector.
Gabelli highlighted the anticipated value of Kraft Heinz’s split, suggesting that the components could reach valuations in the mid-$30 range. He stated, “Basically, the split up pieces can be worth as high as in the mid-30s. So you like the financial engineering? It’s not we don’t like or dislike. We’re just observing it.” Gabelli confirmed that while his firm, GAMCO Investors, currently holds shares, they have not made recent purchases but are in discussions about future investments.
The interest from Gabelli coincides with comments from the Longleaf Partners Fund, which noted Kraft Heinz’s challenges during the second quarter of 2025. The firm referred to the company as a detractor in their performance metrics but acknowledged a strategic shift towards premium brands such as Heinz, Philadelphia, and Ore-Ida. This shift, according to their analysis, is being overlooked by the market.
Amid speculation regarding Berkshire Hathaway, a significant shareholder, potentially reducing its stake, the Longleaf Partners Fund indicated that the situation is complex. They believe the exploration of strategic alternatives could yield positive outcomes for Kraft Heinz in the future.
While acknowledging the risks associated with investing in Kraft Heinz, the fund’s commentary suggested that several artificial intelligence stocks might offer higher returns in a shorter timeframe. They pointed out the potential for significant upside in AI investments compared to Kraft Heinz.
As the market watches closely, Gabelli’s insights and the ongoing developments surrounding Kraft Heinz highlight the dynamic nature of investment strategies in response to corporate restructuring. Investors will be keen to see how the company’s planned split unfolds and the impact it may have on its stock performance in the forthcoming months.
