Mario Gabelli, chairman and CEO of GAMCO Investors, has expressed interest in acquiring shares of the Kraft Heinz Company (NASDAQ: KHC). During a recent appearance on CNBC, Gabelli indicated he is contemplating purchasing the stock in portions, particularly in light of Kraft Heinz’s upcoming plan to split into two separate entities.
Gabelli noted, “Basically the split-up pieces can be worth as high as in the mid-30s.” He emphasized that while his firm has not recently added to its holdings, they are engaged in internal discussions about increasing their investment in Kraft Heinz. “We’re having an internal challenge and debate with our teammates. So, we’ll probably be more of a buyer of the pieces,” he added.
The Kraft Heinz Company has recently faced scrutiny, especially as the food and beverage industry overall has shown signs of sluggishness. Despite this, the company is shifting its focus towards premium products, including well-known brands like Heinz, Philadelphia, and Ore-Ida. This strategic pivot is seen as pivotal by some investors, who believe the market may be undervaluing these developments.
According to the Longleaf Partners Fund in its second quarter 2025 investor letter, Kraft Heinz was identified as a detractor for the quarter. The letter highlighted the potential upside from the ongoing exploration of strategic alternatives and noted that large shareholder Berkshire Hathaway might consider reducing its stake in the company. This situation, they suggested, is more complex than it appears at first glance.
While the Longleaf Partners Fund acknowledges the risks associated with investing in Kraft Heinz, they also express a belief that certain artificial intelligence stocks might offer greater potential for higher returns in a shorter time frame. Their analysis suggests that investors seeking significant upside might want to consider alternatives in the AI sector.
The prospect of Gabelli’s investment and the ongoing changes within Kraft Heinz underscores the dynamic nature of the food and beverage market. As the company navigates through a challenging landscape, it will be crucial to monitor how these strategic decisions unfold and impact stock performance moving forward.
Investors are advised to stay informed about developments regarding Kraft Heinz, particularly with respect to its planned restructuring and the implications it may have on share value. With market attention focused on both traditional food brands and emerging technologies, the coming months will likely be pivotal for the company and its stakeholders.
