Kraft Heinz Accounting Error, SEC Probe Feed Stock Sell-Off (1)

A seemingly minor accounting error and a related SEC investigation have added fuel to investor discontent after Kraft Heinz Co. announced the company would slash dividends and mark down billions from the value of two iconic food brands.

Kraft Heinz booked a $25 million increase to its cost of goods sold in the fourth quarter for costs that should have been reported in prior periods, the company announced Feb. 21.

The out-of-period adjustment was the result of an internal investigation Kraft Heinz launched after it received a subpoena from the Securities and Exchange Commission in October related to an investigation ...