Kraft Heinz shares pop after internal probe ends, SEC review continues

By Food and BeverageFOXBusiness

Warren Buffett: We paid too much for Kraft Heinz

Berkshire Hathaway CEO Warren Buffett tells FOX Business' Liz Claman that he paid too much for Kraft Heinz.

Kraft Heinz shares opened higher on Wall Street on Monday after the food and beverage firm disclosed that it completed an internal investigation into its procurement operations.

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KHCKRAFT HEINZ COMPANY30.68-0.12-0.39%

A separate probe by the Securities and Exchange Commission remains ongoing, but the Chicago-based company’s own investigation spurred new policies to “strengthen internal control over financial reporting,” Kraft said in a statement on Friday.

The firm now expects to report first-quarter earnings, which were twice delayed by the internal review, by the end of July.

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In its annual report, Kraft said it undervalued the cost of products sold by $208 million, including $175 million in misstatements. The errors were not “quantitatively material” but warranted a correction, the company argued.

Last month, Kraft said it would restate financial reports for the past three years due to the discrepancies, which the firm attributed to multiple employees. An internal review into who was responsible for the misstatements continues.

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Alongside the completion of its own investigation into the financial reporting, Kraft also elected Joao Castro-Neves, the former CEO of Anheuser-Busch, to replace outgoing board member Marcel Herrmann Telles.