KHC Gross Margin Analysis

Gross margin measures the percentage of revenue left after paying direct production costs, and KHC's current 32.4% is well below the sector median of 46.9%, placing it at the 25th percentile among peers.

With no year-over-year figure available, the only trend data shows a sharp quarterly drop: the margin fell from 36.7% to 32.4%, a quarter-over-quarter change of -11.7%. This single sequential decline, though limited to two data points, signals deteriorating pricing power or rising input costs at a level already far behind the typical competitor. The combination of a low level and a falling trend raises the risk of continued margin compression and earnings disappointment. This supports the CAUTIOUS overall verdict, as the weaker margin profile and its negative momentum are consistent with a guarded outlook.

Frequently Asked Questions