Kraft Heinz Pauses Plans to Split into 2 Companies, Says its Problems are ‘Fixable’

Kraft Heinz said Wednesday it’s pausing its plans to split into two companies.

Steve Cahillane, a former Kellogg Co. chief who became CEO of Kraft Heinz on Jan. 1, said he wants to ensure that all of the company’s resources are focused on profitable growth.

“I have seen that the opportunity is larger than expected and that many of our challenges are fixable and within our control,” Cahillane said in a statement.

The company’s shares were flat in morning trading Wednesday as Kraft Heinz reported lower quarterly and annual results. Investors are likely concerned that Kraft Heinz believes its businesses aren’t strong enough to stand on their own, said Robert Moskow, an analyst with TD Cowen, in a research note.

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