KHCCAUTIOUS

KHC Gross Margin Analysis

32.4%

Updated 153h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue left after paying direct production costs, so 36.7% means KHC keeps $0.367 of each sales dollar before other expenses.

Sector Performance

25th percentile

KHC

32.4%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

36.7%(Aug 2026)

↓ Declining

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Deep Analysis

Gross margin is the percentage of revenue left after paying direct production costs, so 36.7% means KHC keeps $0.367 of each sales dollar before other expenses.

That sits below the sector median of 44.3%, putting KHC in the 34th percentile among its peers, meaning most competitors retain a larger share of revenue. The trend is not available: the year-over-year change is N/A, the quarter-over-quarter change is N/A, and the last eight quarters show no direction. Without historical data, the level alone suggests KHC operates with thinner pricing power or higher input costs than the typical sector firm, adding uncertainty about future profitability. This combination of a below-median margin and no visible trend raises the risk that KHC’s competitive position is weaker than peers, though it does not confirm deterioration. That supports the overall CAUTIOUS verdict, since the margin currently offers no evidence of improvement and instead points to below-average operational efficiency.

Frequently Asked Questions

What does the Gross Margin tell investors about KHC?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

Who are KHC's closest peers by Gross Margin?

The closest peers by Gross Margin include: LVS (46.9%), ORLY (51.4%), MPWR (55.2%), NEM (56.0%), REI (56.0%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.