KHCCAUTIOUS

Gross Margin

36.7%

Updated 80h ago

Sector Performance

34th percentile

KHC

36.7%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

Gross margin, the percentage of revenue a company retains after paying the direct costs of producing its products, is currently 36.7% for KHC.

This sits below the sector median of 44.4% and places KHC at the 34th percentile among its sector peers, meaning two-thirds of peers have a higher gross margin. The metric has been stable over the last eight quarters; year-over-year change is not available, but the quarter-over-quarter change is a +6.7% improvement from the prior quarter. The combination of a below-median margin with a stable trend suggests limited near-term deterioration risk but also no signal of competitive advantage, implying an average-to-modest opportunity rather than a clear catalyst. This performance supports the overall CAUTIOUS verdict because the margin is persistently weaker than most peers, reinforcing the need for caution on profitability.

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: WHR (12.7%), JBHT (12.6%), DVN (12.1%), F (11.9%), GM (11.5%).

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.