Kraft Heinz CEO Steve Cahillane warns that U.S. consumer affordability is reaching its limit. Low-income households currently report negative cash flow and are depleting their savings. McDonald's joined Kraft Heinz in issuing this warning despite cooling inflation.
The company is lowering prices on select products to combat a spending-driven sales slump. Kraft Heinz is also increasing promotional activity to attract budget-conscious shoppers.
Berkshire Hathaway remains the largest shareholder in the company. Recent earnings reports show a year-over-year decline in both revenue and earnings. Eighteen brokerage firms maintain a consensus rating of Reduce for the stock.