MHGU (Meritage Hospitality Group) EBIT: $-12.2 Mil (TTM As of Mar. 2026)


MHGU Meritage Hospitality Group Inc MHGU
45 GF Score
Price $2.98
GF Value $17.12
Valuation Possible Value Trap
! 8 Warning Signs
View Full Analysis

What is Meritage Hospitality Group EBIT?

Meritage Hospitality Group MHGU +0.90% 45 EBIT is $-12.2 Mil as of Mar. 2026. GuruFocus rates MHGU with a GF Score™ of 45/100 and a GF Value™ of $17.12 (Possible Value Trap). The stock has 8 warning signs investors should review.

Meritage Hospitality Group's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2026 was $-5.7 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2026 was $-12.2 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Meritage Hospitality Group's annualized ROC % for the quarter that ended in Mar. 2026 was -1.84%. Meritage Hospitality Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was -4.55%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Meritage Hospitality Group's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was -2.12%.


Meritage Hospitality Group  (OTCPK:MHGU) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Meritage Hospitality Group's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=-22.744 * ( 1 - 25.78% )/( (925.657 + 913.748)/ 2 )
=-16.8805968/919.7025
=-1.84 %

where

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Meritage Hospitality Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-22.744/( ( (505.416 + max(-55.423, 0)) + (494.808 + max(-56.435, 0)) )/ 2 )
=-22.744/( ( 505.416 + 494.808 )/ 2 )
=-22.744/500.112
=-4.55 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1.788 + 5.062 + 5.746) - (68.019 + 0 + 0)
=-55.423

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(11.035 + 4.293 + 5.729) - (77.491 + 0 + 0.00099999999997635)
=-56.435

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Meritage Hospitality Group's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2026 )
=-12.175/573.409
=-2.12 %

* 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 EBIT Related Terms


Meritage Hospitality Group EBIT Historical Data

* Premium members only.

The historical data trend for Meritage Hospitality Group's EBIT 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.

Meritage Hospitality Group EBIT Chart

Meritage Hospitality Group Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 31.04 21.62 22.61 18.34 -7.96

Meritage Hospitality Group Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.56 2.60 -5.31 -3.79 -5.69

MHGU vs PETZ, GTIM, GENK: EBIT Comparison

For the Restaurants subindustry, Meritage Hospitality Group's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Meritage Hospitality Group's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Meritage Hospitality Group's EV-to-EBIT falls into.


MHGU
45GF Score
Meritage Hospitality Group Inc MHGU
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Meritage Hospitality Group EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $-12.2 Mil.

* 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.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of $-12.2 Mil mean?
Meritage Hospitality Group (MHGU) has a EBIT of $-12.2 Mil as of Mar. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Meritage Hospitality Group.
Is Meritage Hospitality Group's EBIT too high?
Meritage Hospitality Group's current EBIT is $-12.2 Mil. Overall, Meritage Hospitality Group has a GF Score™ of 45/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Meritage Hospitality Group's EBIT compare to PETZ and GTIM?
Meritage Hospitality Group's EBIT of $-12.2 Mil can be compared against companies in the Restaurants industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Restaurants company?
A good EBIT depends on the Restaurants industry context. However, EBIT 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 EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Meritage Hospitality Group. Meritage Hospitality Group's current EBIT is $-12.2 Mil. 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 $17.12, compared to a current price of $2.98 — trading 82.6% below its estimated fair value. The current EBIT is $-12.2 Mil. Meritage Hospitality Group's overall GF Score™ is 45/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For Meritage Hospitality Group (MHGU), the current EBIT is $-12.2 Mil 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 $2.98 is trading 82.6% below its estimated GF Value™ of $17.12. GuruFocus considers Meritage Hospitality Group to be Possible Value Trap.

Key valuation signals for MHGU:

  • EBIT: $-12.2 Mil
  • GF Value™: $17.12 vs. price of $2.98 (82.6% below fair value)
  • GF Score™: 45/100 with 8 warning signs

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 Business Description

Other Exchanges MHGUP.PFD:USA
Address 45 Ottawa Avenue SW, Suite 600, Grand Rapids, MI, USA, 49503
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.
45GF Score

Get the complete analysis for MHGU

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$2.98
Price
$17.12
GF Value