Kraft Heinz is pausing its plan to split, focusing instead on improving its financials before deciding the future of brands like Oscar Mayer, Kraft Mac & Cheese, and Heinz Ketchup.

• Why it matters: Breaking up is hard to do, especially if smaller competitors are capturing consumers taste buds.

State of play: Kraft Heinz said instead of splitting its growth brands and legacy staples, it would invest $600 million in marketing, sales and R&D, in a bid to return to profitable growth.

• "We're getting back to where we ought to be," newly installed CEO Steve Cahillane told investors on an earnings call this morning.
• The company's plan is to be on firmer footing by 2027 and decide then how it wants to move forward.

Investors seemed torn on the news today.

• Berkshire Hathaway — the company's biggest shareholder, which was against the original decision to split — said today it supported the pause.
• TD Cowen analyst Robert Moskow said investors would likely view it negatively, as it indicates the businesses aren't strong enough to stand on their own.

Kraft shares — which were also responding to earnings that showed an 11.5% drop in adjusted operating income for the year — opened trading down over 5% before rebounding to close with a small gain.

• They're down over 15% over the past 12 months.

The big picture: Shoppers are more cost-conscious, more skeptical of processed foods and hungrier for protein, shaking up Big Food's largest portfolios.

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McDonald's extended its U.S. sales streak to three quarters, posting broad-based growth as its value push resonates with price-conscious diners, Axios' Kelly Tyko writes.

By the numbers: Global comparable sales rose 5.7% in the fourth quarter, with gains across all segments.

• U.S. comparable sales climbed 6.8%.

⚠️ Flashback: In November, McDonald's said it was absorbing part of the cost of its $5 and $8 meal promotions to win back cash-strapped diners — a rare move that underscored the pressure on low-income consumers.

🗣️ CEO Chris Kempczinski today said that the company's "value leadership is working," pointing to improved traffic and affordability scores.

Between the lines: Loyalty is emerging as a key growth engine.

• Across 70 markets, systemwide sales to loyalty members rose 20% to nearly $37 billion, with 90-day active users up 19% to nearly 210 million.

Popular promotions helped too, like the return of McDonald's Monopoly game and its holiday Grinch meal.

• 🧦 Fun fact: The Grinch campaign delivered McDonald's highest single sales day in history and briefly made it the world's largest seller of socks, executives said.

🍺 Heineken is cutting up to 6,000 jobs as beer sales slump. The company's CEO said AI productivity savings is also a factor. (CNBC)

📺 Activist investor Ancora Partners disclosed around a $200 million stake in Warner Bros. Discovery and argued the company should pick Paramount over Netflix. (Axios)

💉Moderna shares plunged after the FDA refused to consider reviewing the company's flu vaccine for market approval. (Reuters)

Developers are hatching plans to build an ultra-luxury private golf course near my hometown in Michigan that will be limited initially to no more than 50 members, according to Crain's Detroit Business.

• Even the super-exclusive Augusta National Golf Club, where the Masters is played, is believed to have about 300 members.

⛳️ State of play: Business partners James Housler and Scott Kovanda have hired famed golf architect Gil Hanse to design Frontier Club, which will be located in Lodi Township between Ann Arbor and Saline, where I went to high school.

• The exclusive club would be targeted at the "jet set" with on-site lodging and dining.
• It would not be open to outside play or professional tournaments, Crain's reports.

💭 Nathan's thought bubble: The developers did not disclose expected pricing or membership criteria, but I wouldn't be surprised if we're talking about six-figure initiation fees.

• That would put it on par with some of the highest-end courses in the world.