Shares of Kraft Heinz Co. KHC, -1.29% dropped 1.8% in premarket trade Monday, after the branded foods company said it will restate the financial statements in its annual reports for 2016 and 2017, and for each quarterly period for the first nine months of 2018, as it continues to investigate “certain misstatements.”
The company said the investigation is “substantially complete,” but said it still could not file its 2018 annual report, and will not be able to file its 10-Q quarterly report for the first quarter on time. The company previously disclosed it received a subpoena from the Securities and Exchange Commission related to its accounting policies, procedures and internal controls related to its procurement area. Over the weekend, Warren Buffett, who’s Berkshire Hathaway Inc. is Kraft Heinz’s largest shareholder, said a dispute between Kraft and its auditor prevented Berkshire from reflecting Kraft’s performance in its latest earnings report. “There’s something going on,” Buffett said on CNBC. The stock has tumbled 24.3% year to date, while the S&P 500 SPX, +0.96% has gained 17.5%.