The Kraft Heinz CoXSWX:KHC 59 Operating Margin % is 19.15% as of Mar. 2026, which is 6% below its 10-year median of 20.30. 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 1,951 Consumer Packaged Goods companies, The Kraft Heinz Co ranks better than 90.42% on this metric.
The historical rank and industry rank for The Kraft Heinz Co's Operating Margin % or its related term are showing as below:
XSWX:KHC'
s Operating Margin % Range Over the Past 10 Years
Min: 17.17 Med: 20.3 Max: 23.42
Current: 18.4
XSWX:KHC's Operating Margin % is ranked better than 90.42% of 1951
companies
in the Consumer Packaged Goods industry
Industry Median: 5.26
vs XSWX:KHC: 18.40
The Kraft Heinz Co's 5-Year Average Operating Margin % Growth Rate was -0.90% per year.
The Kraft Heinz Co (XSWX:KHC) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
The Kraft Heinz Co Operating Margin % Related Terms
The Kraft Heinz Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for The Kraft Heinz Co's Operating 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: Operating Margin % Comparison
For the Packaged Foods subindustry, The Kraft Heinz Co's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, The Kraft Heinz Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where The Kraft Heinz Co's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
The Kraft Heinz Co's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
The Kraft Heinz Co (XSWX:KHC) has a Operating Margin % of 19.15% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on The Kraft Heinz Co and its competitors. This is near median its historical median of 20.30. Over the past decade, The Kraft Heinz Co's Operating Margin % has ranged from 17.17 to 23.42. According to the industry distribution chart, The Kraft Heinz Co ranks #187 out of 1951 companies in the Consumer Packaged Goods industry, placing it in the top 9.6%.
Is The Kraft Heinz Co's Operating Margin % too high?
The Kraft Heinz Co's current Operating Margin % of 19.15% is near median its 10-year median of 20.30. Over the past 10 years, this metric has ranged from a low of 17.17 to a high of 23.42. The Consumer Packaged Goods industry median Operating Margin % is 5.26. The Kraft Heinz Co's value of 19.15% is 264.1% above this industry median. Based on the distribution chart, The Kraft Heinz Co ranks #187 out of 1951 companies in the Consumer Packaged Goods industry, which is in the top quartile — a strong position relative to peers. 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 Operating Margin % compare to GIS and JBS?
According to the Consumer Packaged Goods industry distribution chart, The Kraft Heinz Co ranks #187 out of 1951 companies for Operating Margin %. This places The Kraft Heinz Co in the top 10% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.26. The Kraft Heinz Co's value of 19.15% is 264.1% above this benchmark. Historically, The Kraft Heinz Co's own Operating Margin % has ranged from 17.17 to 23.42 over the past decade. While the company's 10-year median is 20.30 vs. the industry median of 5.26, 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 Operating Margin % for a Consumer Packaged Goods company?
The median Operating Margin % among Consumer Packaged Goods companies is 5.26, based on 1,951 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Kraft Heinz Co's current Operating Margin % of 19.15% is 264.1% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on The Kraft Heinz Co and its competitors. For the Consumer Packaged Goods industry, the median Operating Margin % is 5.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Kraft Heinz Co's current Operating Margin % is 19.15%, which is near median its own 10-year median of 20.30. 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 Operating Margin % of 19.15%. 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 Operating Margin % is 19.15%, which is near median its 10-year median of 20.30 and 264.1% above the Consumer Packaged Goods industry median of 5.26. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For The Kraft Heinz Co (XSWX:KHC), the current Operating Margin % is 19.15% 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:
Operating Margin %: 19.15% (near median its 10-year median of 20.30)
GF Value™: CHF24.90 vs. price of CHF18.27 (26.6% below fair value)
Industry Position: 264.1% above the Consumer Packaged Goods median (#187 of 1951)
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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