What's going on?

On Friday, shares of Kraft Heinz (of mayo and ketchup fame) dipped 27% after the company revealed a trifecta of concerns in its fourth-quarter update late on Thursday (tweet this).

What does this mean?

First, Kraft Heinz�s quarterly earnings were short of analysts� expectations. Second, the company disclosed that US regulators are investigating some of its accounting policies (specifically, how it adds up the cost of buying goods and services). And third, Kraft Heinz posted a $13 billion loss after writing down (when a company admits that it�s overvalued its assets and lowers their value on paper) the value of its Kraft and Oscar Mayer brands by $15 billion.

Why should I care?

For markets: Cut too close to the bone.

Kraft Heinz’s second-largest shareholder is 3G Capital, which has a reputation for �zero-based budgeting� � where all company spending needs to be justified for each period, as opposed to working off of previous budgets. So it�s possible that Kraft Heinz hasn�t had the spending approved to splash on new trends � hurting the company as consumers grow more health conscious. Other historically unhealthy companies, meanwhile, are turning to healthier options � like Pepsi � or diversifying their businesses, like Coca-Cola. Investors in companies with 3G Capital behind the wheel may well question the value of its penny pinching in these changing times: sometimes it�s adapt or die.

The bigger picture: The world doesn�t revolve around Brexit.

Two years ago, rival food maker Unilever politely declined a $143 billion takeover offer from Kraft Heinz. 3G Capital has form when it comes to pushing for deals � whether wanted by the company being courted or not. So, likely to protect itself from further unwelcome advances, Unilever considered relocating its headquarters from the UK to the Netherlands � where laws are more favorable for avoiding hostile takeovers. At the time, many insisted that Brexit was the main motivation to up sticks � but perhaps it wasn’t.