KHCKraft Heinz
Is the business good?
The checks split: nothing decisive, though margins compressing.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating margin has narrowed over the past few years, profitability per dollar of sales is eroding.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is KHC?
Kraft Heinz earns −4.8% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 14 points below what the capital costs: growth destroys value
- Operating margin
- −13%
Operating margin · Packaged Foods median 7.6% · 12 months to Q2 2026
- Share count, year on year
- +0.08%
Share count, year on year · flat: no meaningful dilution
- Gross margin
- 33%
Gross margin
| Year | Operating margin |
|---|---|
| FY2020 | 8.1% |
| FY2021 | 13% |
| FY2022 | 14% |
| FY2023 | 17% |
| FY2024 | 6.5% |
| FY2025 | −19% |
Details›
- Gross margin12 months to Q2 2026
- 33%
- Operating margin12 months to Q2 2026
- −13%
- Net margin12 months to Q2 2026
- −14%
- Free cash flow margin
- 15%
- Revenue, trailing twelve months
- $24.9B
- Free cash flow, trailing twelve months
- $3.82B
- Net income, trailing twelve months
- −$3.40B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- −4.8%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Packaged Foods
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