Why is Kraft Heinz splitting into two companies?

Kraft Heinz is splitting to allow new, focused entities to better manage and revitalize its mature brand portfolios.

What brands will be in the new Kraft Heinz companies?

One company will feature Heinz and Philadelphia; the other will include Oscar Mayer and Lunchables.

Is Kraft Heinz stock still a good investment with its dividend?

Kraft Heinz offers a high 6.3% dividend yield supported by strong free cash flow, despite past underperformance.

Home / Business and Economy / Kraft Heinz Splits: Can Two Be Better Than One?

Kraft Heinz Splits: Can Two Be Better Than One?

6 Dec, 2025

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Summary

Kraft Heinz plans to split into two independent companies.
The company faces challenges with mature, less-favored brands.
A high-yield dividend of 6.3% is supported by strong free cash flow.

Kraft Heinz Splits: Can Two Be Better Than One?

Kraft Heinz is set to split into two distinct companies, an ambitious move to address its long-standing underperformance. The conglomerate, known for household names like Kraft, Heinz, and Oscar Mayer, has struggled to achieve top-line growth due to a portfolio dominated by mature brands that have fallen out of favor with evolving consumer tastes.

Since 2020, Kraft Heinz has reported minimal revenue increases, with its 2024 revenue of $25.8 billion representing a 3% decrease from the prior year. The proposed split will create two businesses: one centered around Heinz, Kraft Macaroni and Cheese, and Philadelphia Cream Cheese, and the other led by Oscar Meyer, Lunchables, and Kraft Singles.