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A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Meritage Hospitality Group's Debt-to-EBITDA or its related term are showing as below:
MHGU'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 3.62 Med: 12.25 Max: 96.08
Current: 96.08
During the past 13 years, the highest Debt-to-EBITDA Ratio of Meritage Hospitality Group was 96.08. The lowest was 3.62. And the median was 12.25.
MHGU's Debt-to-EBITDA is ranked worse than 99.67% of 299
companies
in the Restaurants industry
Industry Median: 2.91
vs MHGU: 96.08
Meritage Hospitality Group (OTCPK:MHGU) Debt-to-EBITDA Explanation
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Meritage Hospitality Group Debt-to-EBITDA Related Terms
Meritage Hospitality Group Debt-to-EBITDA Historical Data
* 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.
MHGU vs ARKR, NROM, GTIM: Debt-to-EBITDA Comparison
For the Restaurants subindustry, Meritage Hospitality Group's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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.
Meritage Hospitality Group Debt-to-EBITDA vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Meritage Hospitality Group's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Meritage Hospitality Group's Debt-to-EBITDA 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.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
Meritage Hospitality Group (MHGU) has a Debt-to-EBITDA of -152.02 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Meritage Hospitality Group. Over the past decade, Meritage Hospitality Group's Debt-to-EBITDA has ranged from 3.62 to 96.08. According to the industry distribution chart, Meritage Hospitality Group ranks #298 out of 299 companies in the Restaurants industry, placing it in the top 99.7%.
Is Meritage Hospitality Group's Debt-to-EBITDA too high?
Meritage Hospitality Group's current Debt-to-EBITDA is -152.02. Over the past 10 years, this metric has ranged from a low of 3.62 to a high of 96.08. Based on the distribution chart, Meritage Hospitality Group ranks #298 out of 299 companies in the Restaurants industry, which is in the bottom quartile relative to peers. Overall, Meritage Hospitality Group has a GF Score™ of 51/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Meritage Hospitality Group's Debt-to-EBITDA compare to ARKR and NROM?
According to the Restaurants industry distribution chart, Meritage Hospitality Group ranks #298 out of 299 companies for Debt-to-EBITDA. This places Meritage Hospitality Group in the lower half of its industry. The industry median Debt-to-EBITDA is 2.91. Historically, Meritage Hospitality Group's own Debt-to-EBITDA has ranged from 3.62 to 96.08 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Restaurants company?
The median Debt-to-EBITDA among Restaurants companies is 2.91, based on 299 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Meritage Hospitality Group. For the Restaurants industry, the median Debt-to-EBITDA is 2.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Meritage Hospitality Group's current Debt-to-EBITDA is -152.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Meritage Hospitality Group stock overvalued right now?
Based on GuruFocus' analysis, Meritage Hospitality Group (MHGU) is currently considered Possible Value Trap. The stock's GF Value™ is $17.24, compared to a current price of $2.23 — trading 87.1% below its estimated fair value. The current Debt-to-EBITDA is -152.02. Meritage Hospitality Group's overall GF Score™ is 51/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Meritage Hospitality Group (MHGU), the current Debt-to-EBITDA is -152.02 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 Meritage Hospitality Group (MHGU) Overvalued in 2026?
Based on GuruFocus' analysis, Meritage Hospitality Group stock appears to be undervalued.
The current stock price of $2.23 is trading 87.1% below its estimated GF Value™ of $17.24.
GuruFocus considers Meritage Hospitality Group to be Possible Value Trap.
Key valuation signals for MHGU:
Debt-to-EBITDA: -152.02
GF Value™: $17.24 vs. price of $2.23 (87.1% below fair value)
No single metric tells the full story. See the MHGU stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Meritage Hospitality Group Inc is engaged in operating quick-service and casual dining restaurants across various states in the United States. It operates Wendy's quick-service restaurants across various states under franchise agreements with its franchisor. It also operates independent restaurants under three concepts throughout Michigan, which include Morning Belle restaurants, Stan's Tacos restaurant, and Blue Porch Bar & Grill restaurant. It is focused on the future development and long-term growth of its Morning Belle brand.
51GF Score
Get the complete analysis for MHGU
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