Is Kraft Heinz (KHC) The Best Stock to Buy On The Dip?

We just covered the 10 Best Stocks to Buy Now According to Warren Buffett. Kraft Heinz Co (NASDAQ:KHC) ranks #9 (see the 5 best stocks to buy now here).

Kraft Heinz Co (NASDAQ:KHC) has been one of the losers in the Berkshire portfolio. The stock is down about 40% over the past five years. Berkshire Hathaway’s new CEO Greg Abel called the stock’s performance “disappointing” in a recent CNBC interview. He said Berkshire now plans to keep its stake in the company, dropping its earlier plan to sell after Kraft Heinz Co (NASDAQ:KHC) proposed a split. The change came after Kraft paused the split.

Kraft Heinz Co (NASDAQ:KHC) bull case has some ifs, buts and requires patience. The company plans a $600 million reinvestment plan to modernize its brands and regain market share. CEO Steve Cahillane plans to invest in marketing, R&D, and product quality to make the company’s brand stick with modern customers. Kraft Heinz Co (NASDAQ:KHC) also expects to surpass $2.5 billion in gross efficiencies by the end of 2026.

While Abel didn’t sound too enthusiastic about Kraft Heinz Co (NASDAQ:KHC) in the CNBC interview, he did praise the company’s plan not to split. Here is what he said:

“So, for Steve to come in and say we’re pausing it, there’s opportunities within Kraft Heinz to fix things and get the business back on track and then he’ll evaluate things — we thought that was absolutely the right approach.”

Longleaf Partners Fund explained why they are optimistic about KHC for the long term in their investor letter. Read it here.

While we acknowledge the potential of KHC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy.

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