The latest Kraft Heinz (NASDAQ:KHC) news sees the company’s stock take a step backwards, declining more than 2% today as a top analyst noted that the brand’s financial situation has experienced some turmoil recently.

The Chicago, Ill.-based food business was covered by Guggenheim Securities analyst Laurent Grandet on Monday, who said the following: “In our view, Patricio faces a monumental challenge to put Kraft Heinz on a path to success as a standalone company.” This could be a complicated situation in which the company’s financial situation could be more complicated than originally thought moving forward.

“The company finds itself in a precarious situation where (1) the balance sheet is constrained by a high debt burden, (2) the brands are in dire need of heavy investment, (3) the organization lacks enthusiasm and the appropriate level of talent, and (4) the cash flow isn’t sufficient to fund all those urgencies concurrently,” Grandet adds.

Once July 1 rolls around, Kraft Heinz will have a new CEO in Miguel Patricio, a veteran marketer who will take over for the outgoing CEO Bernardo Hees. The latter is an executive who focused on cutting costs, and played a key role in leading the company since its 2015 merger.

The business has faced two straight years of poor sales growth, as well as a $15 billion write-down to the Kraft and Oscar-Meyer trademarks. The stock has suffered too, falling 50% over the past year.

KHC stock is down about 2.4% on Monday following the news.