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Guzman y GomezASX:GYG -0.28%8 Gross Margin % is 80.91% as of Jun. 2026, which is 7% above its 10-year median of 75.47. GuruFocus rates ASX:GYG with a GF Score™ of 8/100. The stock has 3 warning signs investors should review. Among 354 Restaurants companies, Guzman y Gomez ranks better than 96.89% on this metric.
Guzman y Gomez (ASX:GYG) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Guzman y Gomez had a gross margin of 80.91% for the quarter that ended in Jun. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Guzman y Gomez Gross Margin % Related Terms
Guzman y Gomez Gross Margin % Historical Data
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The historical data trend for Guzman y Gomez's Gross 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.
ASX:GYG vs MCD, SBUX, CMG: Gross Margin % Comparison
For the Restaurants subindustry, Guzman y Gomez's Gross Margin %, along with its competitors' market caps and Gross 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.
Guzman y Gomez Gross Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Guzman y Gomez's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Guzman y Gomez's Gross Margin % 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Guzman y Gomez (ASX:GYG) has a Gross Margin % of 80.91% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Guzman y Gomez and its competitors. This is near median its historical median of 75.47. Over the past decade, Guzman y Gomez's Gross Margin % has ranged from 72.82 to 76.41. According to the industry distribution chart, Guzman y Gomez ranks #11 out of 354 companies in the Restaurants industry, placing it in the top 3.1%.
Is Guzman y Gomez's Gross Margin % too high?
Guzman y Gomez's current Gross Margin % of 80.91% is near median its 10-year median of 75.47. Over the past 10 years, this metric has ranged from a low of 72.82 to a high of 76.41. The Restaurants industry median Gross Margin % is 45.58. Guzman y Gomez's value of 80.91% is 77.5% above this industry median. Based on the distribution chart, Guzman y Gomez ranks #11 out of 354 companies in the Restaurants industry, which is in the top quartile — a strong position relative to peers. Overall, Guzman y Gomez has a GF Score™ of 8/100, reflecting its overall financial health beyond just this single metric.
How does Guzman y Gomez's Gross Margin % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Guzman y Gomez ranks #11 out of 354 companies for Gross Margin %. This places Guzman y Gomez in the top 3% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 45.58. Guzman y Gomez's value of 80.91% is 77.5% above this benchmark. Historically, Guzman y Gomez's own Gross Margin % has ranged from 72.82 to 76.41 over the past decade. While the company's 10-year median is 75.47 vs. the industry median of 45.58, Guzman y Gomez 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 Gross Margin % for a Restaurants company?
The median Gross Margin % among Restaurants companies is 45.58, based on 354 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Guzman y Gomez's current Gross Margin % of 80.91% is 77.5% 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Guzman y Gomez and its competitors. For the Restaurants industry, the median Gross Margin % is 45.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Guzman y Gomez's current Gross Margin % is 80.91%, which is near median its own 10-year median of 75.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Guzman y Gomez stock overvalued right now?
Guzman y Gomez (ASX:GYG) has a current Gross Margin % of 80.91%. The current Gross Margin % is 80.91%, which is near median its 10-year median of 75.47 and 77.5% above the Restaurants industry median of 45.58. Guzman y Gomez's overall GF Score™ is 8/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Guzman y Gomez (ASX:GYG), the current Gross Margin % is 80.91% as of Jun. 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.
Guzman y Gomez is a Mexican-inspired quick-service restaurant operator and franchisor. Most stores are in Australia. Underpinning the company's growth outlook is an ambitious plan to reach a network of more than 1000 Australian stores over the next 20-plus years. At the end of fiscal 2025, its footprint stood at a around 200. Guzman also has a presence in Singapore and Japan through master franchise agreements.
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