This Warren Buffett stock is reportedly considering a big move

Warren Buffett Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) There are many well-known common names in its portfolio. But not all of them have done well in recent years. A great example of that is Craft Heinz (NASDAQ: KHC). Despite being well-known in the food industry, it was a brutal investment to hold. Its stock has fallen 17% over the past five years.

Business is not going well, growth is stagnant, and investors are worried about the future as consumers are perfect for healthier food choices. And it is reportedly considering disbanding its business. Here’s why it can be good for investors:

According to Wall Street JournalCraft is considering ejecting a significant portion of its business, which is worth around $20 billion. Currently, the total market capitalization of the stock is approximately $34 billion. Details are not yet known exactly as to which brands are the business, but the company reportedly considers having one business focused on spreads and sauces, while the other could include processed meats, cheeses and other core products.

It may take weeks for details to be organized, and there may be no breakup. However, in recent years, the stock and company performance is very low, so the shakeup may be in place. For example, the company’s sources and spreads are staple foods for households around the world and could have better growth potential than businesses focusing on processed foods related to health risks.

Kraft’s topline doesn’t give investors much reason to be optimistic. Although it has been relatively stable in recent years, its annual revenue is around $26 billion, which is not particularly exciting Growth Investorespecially considering that many of the company’s brands are synonymous with diet that is less healthy.

Future-looking investors know that this downward trend could last in the future as consumers eat healthier. And while the stock offers a high dividend yield of 5.5% today, it may not be enough to own it, especially if the loss of the stock is greater than offsetting dividend income. Furthermore, the risk is that if the company’s top and bottom lines fall in the future, dividends may not prove sustainable.