The Kraft Heinz CoXSWX:KHC 59 Gross Margin % is 36.70% as of Mar. 2026, which is 9% above its 10-year median of 33.74. GuruFocus rates XSWX:KHC with a GF Score™ of 59/100 and a GF Value™ of CHF24.90. The stock has 1 warning sign investors should review. Among 1,902 Consumer Packaged Goods companies, The Kraft Heinz Co ranks better than 66.25% on this metric.
The historical rank and industry rank for The Kraft Heinz Co's Gross Margin % or its related term are showing as below:
XSWX:KHC'
s Gross Margin % Range Over the Past 10 Years
Min: 30.67 Med: 33.74 Max: 35.05
Current: 33.87
During the past 13 years, the highestGross Margin % of The Kraft Heinz Co was 35.05%. The lowest was 30.67%. And the median was 33.74%.
XSWX:KHC's Gross Margin % is ranked better than 66.25% of 1902
companies
in the Consumer Packaged Goods industry
Industry Median: 26.37
vs XSWX:KHC: 33.87
The Kraft Heinz Co had a gross margin of 36.70% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for The Kraft Heinz Co was -0.10% per year.
The Kraft Heinz Co (XSWX:KHC) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
The Kraft Heinz Co had a gross margin of 36.70% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
The Kraft Heinz Co Gross Margin % Related Terms
The Kraft Heinz Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for The Kraft Heinz Co's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
XSWX:KHC vs GIS, JBS, HRL: Gross Margin % Comparison
For the Packaged Foods subindustry, The Kraft Heinz Co's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
The Kraft Heinz Co Gross Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, The Kraft Heinz Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where The Kraft Heinz Co's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
The Kraft Heinz Co (XSWX:KHC) has a Gross Margin % of 36.70% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on The Kraft Heinz Co and its competitors. This is near median its historical median of 33.74. Over the past decade, The Kraft Heinz Co's Gross Margin % has ranged from 30.67 to 35.05. According to the industry distribution chart, The Kraft Heinz Co ranks #642 out of 1902 companies in the Consumer Packaged Goods industry, placing it in the top 33.8%.
Is The Kraft Heinz Co's Gross Margin % too high?
The Kraft Heinz Co's current Gross Margin % of 36.70% is near median its 10-year median of 33.74. Over the past 10 years, this metric has ranged from a low of 30.67 to a high of 35.05. The Consumer Packaged Goods industry median Gross Margin % is 26.37. The Kraft Heinz Co's value of 36.70% is 39.2% above this industry median. Based on the distribution chart, The Kraft Heinz Co ranks #642 out of 1902 companies in the Consumer Packaged Goods industry, which is above the industry midpoint. Overall, The Kraft Heinz Co has a GF Score™ of 59/100, reflecting its overall financial health beyond just this single metric.
How does The Kraft Heinz Co's Gross Margin % compare to GIS and JBS?
According to the Consumer Packaged Goods industry distribution chart, The Kraft Heinz Co ranks #642 out of 1902 companies for Gross Margin %. This puts The Kraft Heinz Co in the upper half of its industry. The industry median Gross Margin % is 26.37. The Kraft Heinz Co's value of 36.70% is 39.2% above this benchmark. Historically, The Kraft Heinz Co's own Gross Margin % has ranged from 30.67 to 35.05 over the past decade. While the company's 10-year median is 33.74 vs. the industry median of 26.37, The Kraft Heinz Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Consumer Packaged Goods company?
The median Gross Margin % among Consumer Packaged Goods companies is 26.37, based on 1,902 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Kraft Heinz Co's current Gross Margin % of 36.70% is 39.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on The Kraft Heinz Co and its competitors. For the Consumer Packaged Goods industry, the median Gross Margin % is 26.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Kraft Heinz Co's current Gross Margin % is 36.70%, which is near median its own 10-year median of 33.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Kraft Heinz Co stock overvalued right now?
The Kraft Heinz Co (XSWX:KHC) has a current Gross Margin % of 36.70%. The stock's GF Value™ is CHF24.90, compared to a current price of CHF18.27 — trading 26.6% below its estimated fair value. The current Gross Margin % is 36.70%, which is near median its 10-year median of 33.74 and 39.2% above the Consumer Packaged Goods industry median of 26.37. The Kraft Heinz Co's overall GF Score™ is 59/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For The Kraft Heinz Co (XSWX:KHC), the current Gross Margin % is 36.70% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is The Kraft Heinz Co (XSWX:KHC) Overvalued in 2026?
Based on GuruFocus' analysis, The Kraft Heinz Co stock appears to be undervalued.
The current stock price of CHF18.27 is trading 26.6% below its estimated GF Value™ of CHF24.90.
Key valuation signals for XSWX:KHC:
Gross Margin %: 36.70% (near median its 10-year median of 33.74)
GF Value™: CHF24.90 vs. price of CHF18.27 (26.6% below fair value)
Industry Position: 39.2% above the Consumer Packaged Goods median (#642 of 1902)
No single metric tells the full story. See the XSWX:KHC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
In July 2015, Kraft merged with Heinz to create one of North America's largest food and beverage manufacturers. Beyond its namesake brands, its portfolio includes Oscar Mayer, Velveeta, and Philadelphia. While the retail channel drives around 85% of its total sales, the firm also maintains a growing foodservice presence. Outside North America, Kraft Heinz's global reach encompasses a distribution network in Europe and emerging markets, which accounts for around 25% of its consolidated sales base. The company's products are sold in more than 190 countries and territories.
59GF Score
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