Sometimes the best plan is to abandon the plan altogether. That's the message from Kraft Heinz (KHC) this weekend, after new CEO Steve Cahillane told investors he's scrapping the Kraft-Heinz breakup that was announced just last September. Five weeks into the job, Cahillane has decided the company's problems can be fixed internally rather than through a corporate divorce.

What makes this particularly interesting is that Berkshire Hathaway's Greg Abel came out in support of the decision. According to reports from CNBC, Abel said Berkshire backs both the board and Cahillane's choice to redirect attention toward competing more effectively and serving customers. That's a diplomatic way of saying "let's try actually running the business better before we blow it up."

Why Berkshire's Opinion Actually Matters

Berkshire isn't just another shareholder offering commentary from the cheap seats. The Omaha-based conglomerate owns 27.5% of Kraft Heinz, a position currently valued at around $8.1 billion. When you're the largest holder by that margin, your strategic preferences tend to carry weight.

And here's the thing: Warren Buffett was never a fan of the split idea to begin with. He told CNBC he was "disappointed" by the announcement and offered this brutally honest assessment: "It certainly didn't turn out to be a brilliant idea to put them together, but I don't think taking it apart will fix it." That's Buffett-speak for "we made a mistake, but let's not compound it with another one."

The Numbers Behind the Strategy Reversal

The fourth-quarter results help explain why Cahillane is choosing operational fixes over structural surgery. Adjusted earnings per share fell 20.2% to 67 cents, while revenue came in at $6.354 billion, missing the $6.376 billion Wall Street estimate. Net sales dropped 3.4%, and organic net sales declined 4.2%. Not exactly the kind of momentum that makes you want to add the complexity of a corporate separation on top.

Instead, management is deploying $600 million across marketing, sales, research and development, product upgrades, and selective pricing moves. The investment is aimed at accelerating progress in the company's Taste Elevation portfolio and supporting a recovery in the struggling U.S. business.

Regionally, North America revenue fell 5.4% to $4.70 billion, while International Developed Markets climbed 1.8% to $930 million and Emerging Markets grew 4.3% to $724 million. The company also declared its regular quarterly dividend of 40 cents per share, payable March 27, 2026, to shareholders of record as of March 6, 2026.

A Brutal Decade for Berkshire's Investment

The guidance for fiscal 2026 paints a picture of a company still fighting headwinds. Kraft Heinz expects adjusted EPS between $1.98 and $2.10, while organic net sales are projected to decline 1.5% to 3.5%. Management noted an estimated 100-basis-point drag from incremental SNAP headwinds, reflecting the impact of changes to government assistance programs on consumer spending.

This situation highlights the ongoing scrutiny around Berkshire's sizable Kraft Heinz position, which has been nothing short of painful. Since the 2015 merger that valued shares at $73.73, the investment has lost a staggering $16.10 billion in value. Shares recently hit a 52-week low of $22.35, and Berkshire's stake has shrunk from $23.99 billion to just $7.89 billion. That's the kind of decline that makes even the most patient investor question the thesis.

The numbers illustrate both the extent of the financial downturn and the impact of shifting consumer preferences away from processed foods. This backdrop adds urgency to management's pivot toward growth strategies, particularly as Berkshire's new leadership under Abel may signal a fresh look at long-held investments.

What Happens Next

As CNBC reported, Berkshire previously filed an SEC registration that would allow it to resell up to 99.9% of the 325.6 million shares it held as of September 30. That filing raised eyebrows about potential exits. The decision to keep Kraft Heinz intact may reduce the chances those sales actually happen, though the option remains on the table.

Kraft Heinz board chair John T. Cahill endorsed the strategic shift, pointing to Cahillane's experience with brand turnarounds and large-scale transformations. He said pausing the separation to prioritize growth creates "a clear glidepath back to profitable growth." Whether that glidepath materializes will determine if Cahillane's bet on operational improvement over restructuring pays off, and whether Berkshire finally sees some upside from what Buffett himself admits wasn't a brilliant move.