Your "proceeds" from the sale amounts to $561 of cash and $2,469.93 in stock for a total of $3,030.93.
So $3,03093 - $695.98 = $-2,334.95. That's the gain based on all the proceeds. But the gain you realize and report in your income tax return is the lesser of the cash or the gain based on the proceeds, so you will report a long term or short term gain - based on your holding period of Kraft - of $561. That is you will report a basis figure of $0 against the cash proceeds.
Since you "used up" none of your Kraft basis the entire basis of $695.98 carries over to your new Heinz stock, as does the original holding period.
