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Meritage Hospitality GroupMHGU +12.50%56 Debt-to-Equity is 6.53 as of Mar. 2026, which is 29% above its 10-year median of 5.07. GuruFocus rates MHGU with a GF Score™ of 56/100 and a GF Value™ of $17.27 (Possible Value Trap). The stock has 8 warning signs investors should review. Among 318 Restaurants companies, Meritage Hospitality Group ranks worse than 96.54% on this metric.
A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for Meritage Hospitality Group's Debt-to-Equity or its related term are showing as below:
MHGU'
s Debt-to-Equity Range Over the Past 10 Years
Min: 2.52 Med: 5.07 Max: 6.84
Current: 6.53
During the past 13 years, the highest Debt-to-Equity Ratio of Meritage Hospitality Group was 6.84. The lowest was 2.52. And the median was 5.07.
MHGU's Debt-to-Equity is ranked worse than 96.54% of 318
companies
in the Restaurants industry
Industry Median: 0.905
vs MHGU: 6.53
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
Meritage Hospitality Group Debt-to-Equity Related Terms
Meritage Hospitality Group Debt-to-Equity 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 NROM, GTIM, PETZ: Debt-to-Equity Comparison
For the Restaurants subindustry, Meritage Hospitality Group's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity 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-Equity vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Meritage Hospitality Group's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where Meritage Hospitality Group's Debt-to-Equity 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.
Meritage Hospitality Group (MHGU) has a Debt-to-Equity of 6.53 as of Mar. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Meritage Hospitality Group and its competitors. This is 29% above median its historical median of 5.07. Over the past decade, Meritage Hospitality Group's Debt-to-Equity has ranged from 2.52 to 6.84. According to the industry distribution chart, Meritage Hospitality Group ranks #307 out of 318 companies in the Restaurants industry, placing it in the top 96.5%.
Is Meritage Hospitality Group's Debt-to-Equity too high?
Meritage Hospitality Group's current Debt-to-Equity of 6.53 is 29% above median its 10-year median of 5.07. Over the past 10 years, this metric has ranged from a low of 2.52 to a high of 6.84. The Restaurants industry median Debt-to-Equity is 0.91. Meritage Hospitality Group's value of 6.53 is 621.5% above this industry median. Based on the distribution chart, Meritage Hospitality Group ranks #307 out of 318 companies in the Restaurants industry, which is in the bottom quartile relative to peers. Overall, Meritage Hospitality Group has a GF Score™ of 56/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Meritage Hospitality Group's Debt-to-Equity compare to NROM and GTIM?
According to the Restaurants industry distribution chart, Meritage Hospitality Group ranks #307 out of 318 companies for Debt-to-Equity. This places Meritage Hospitality Group in the lower half of its industry. The industry median Debt-to-Equity is 0.91. Meritage Hospitality Group's value of 6.53 is 621.5% above this benchmark. Historically, Meritage Hospitality Group's own Debt-to-Equity has ranged from 2.52 to 6.84 over the past decade. While the company's 10-year median is 5.07 vs. the industry median of 0.91, Meritage Hospitality Group 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 Debt-to-Equity for a Restaurants company?
The median Debt-to-Equity among Restaurants companies is 0.91, based on 318 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Meritage Hospitality Group's current Debt-to-Equity of 6.53 is 621.5% 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 Debt-to-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Meritage Hospitality Group and its competitors. For the Restaurants industry, the median Debt-to-Equity is 0.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Meritage Hospitality Group's current Debt-to-Equity is 6.53, which is 29% above median its own 10-year median of 5.07. 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 $17.27, compared to a current price of $2.25 — trading 87% below its estimated fair value. The current Debt-to-Equity is 6.53, which is 29% above median its 10-year median of 5.07 and 621.5% above the Restaurants industry median of 0.91. Meritage Hospitality Group's overall GF Score™ is 56/100 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-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For Meritage Hospitality Group (MHGU), the current Debt-to-Equity is 6.53 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 $2.25 is trading 87% below its estimated GF Value™ of $17.27.
GuruFocus considers Meritage Hospitality Group to be Possible Value Trap.
Key valuation signals for MHGU:
Debt-to-Equity: 6.53 (29% above median its 10-year median of 5.07)
GF Value™: $17.27 vs. price of $2.25 (87% below fair value)
Industry Position: 621.5% above the Restaurants median (#307 of 318)
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.
56GF Score
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