Biglari HoldingsBH +7.46%56 Gross Margin % is 39.39% as of Mar. 2026, which is 14% above its 10-year median of 34.69. GuruFocus rates BH with a GF Score™ of 56/100 and a GF Value™ of $240.80 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 359 Restaurants companies, Biglari Holdings ranks worse than 61.56% on this metric.
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
Biglari Holdings had a gross margin of 39.39% for the quarter that ended in Mar. 2026 => Competition eroding margins
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.
Biglari Holdings Gross Margin % Related Terms
Biglari Holdings Gross Margin % Historical Data
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The historical data trend for Biglari Holdings'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.
For the Restaurants subindustry, Biglari Holdings'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.
Biglari Holdings Gross Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Biglari Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Biglari Holdings'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.
Biglari Holdings (BH) has a Gross Margin % of 39.39% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Biglari Holdings and its competitors. This is 14% above median its historical median of 34.69. Over the past decade, Biglari Holdings' Gross Margin % has ranged from 18.16 to 42.53. According to the industry distribution chart, Biglari Holdings ranks #221 out of 359 companies in the Restaurants industry, placing it in the top 61.6%.
Is Biglari Holdings' Gross Margin % too high?
Biglari Holdings' current Gross Margin % of 39.39% is 14% above median its 10-year median of 34.69. Over the past 10 years, this metric has ranged from a low of 18.16 to a high of 42.53. The Restaurants industry median Gross Margin % is 45.71. Biglari Holdings' value of 39.39% is 13.8% below this industry median. Based on the distribution chart, Biglari Holdings ranks #221 out of 359 companies in the Restaurants industry, which is below the industry midpoint. Overall, Biglari Holdings has a GF Score™ of 56/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Biglari Holdings' Gross Margin % compare to BJRI and CBRL?
According to the Restaurants industry distribution chart, Biglari Holdings ranks #221 out of 359 companies for Gross Margin %. This places Biglari Holdings in the lower half of its industry. The industry median Gross Margin % is 45.71. Biglari Holdings' value of 39.39% is 13.8% below this benchmark. Historically, Biglari Holdings' own Gross Margin % has ranged from 18.16 to 42.53 over the past decade. While the company's 10-year median is 34.69 vs. the industry median of 45.71, Biglari Holdings has consistently been below 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 45.71, based on 359 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. Biglari Holdings's current Gross Margin % of 39.39% is 13.8% below 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 Biglari Holdings and its competitors. For the Restaurants industry, the median Gross Margin % is 45.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Biglari Holdings's current Gross Margin % is 39.39%, which is 14% above median its own 10-year median of 34.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Biglari Holdings stock overvalued right now?
Based on GuruFocus' analysis, Biglari Holdings (BH) is currently considered Significantly Overvalued. The stock's GF Value™ is $240.80, compared to a current price of $403.99 — trading 67.8% above its estimated fair value. The current Gross Margin % is 39.39%, which is 14% above median its 10-year median of 34.69 and 13.8% below the Restaurants industry median of 45.71. Biglari Holdings' overall GF Score™ is 56/100 with 4 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 Biglari Holdings (BH), the current Gross Margin % is 39.39% 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 Biglari Holdings (BH) Overvalued in 2026?
Based on GuruFocus' analysis, Biglari Holdings stock appears to be overvalued.
The current stock price of $403.99 is trading 67.8% above its estimated GF Value™ of $240.80.
GuruFocus considers Biglari Holdings to be Significantly Overvalued.
Key valuation signals for BH:
Gross Margin %: 39.39% (14% above median its 10-year median of 34.69)
GF Value™: $240.80 vs. price of $403.99 (67.8% above fair value)
Industry Position: 13.8% below the Restaurants median (#221 of 359)
No single metric tells the full story. See the BH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Biglari Holdings Inc is a holding company that owns subsidiaries in a range of businesses. The company's reportable segments include Restaurant Operations, Insurance Operations, and Oil and Gas Operations. Its restaurant operations include Steak n Shake and Western Sizzlin. Its insurance operations include First Guard, Southern Pioneer, and Biglari Reinsurance. Oil and gas operations include Southern Oil and Abraxas Petroleum. The company also reports segment information for Maxim. The majority of revenue is derived from the Restaurant Operations Segment.
56GF Score
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