Chagee HoldingsCHA -2.98%22 Gross Margin % is 41.58% as of Mar. 2026, which is 6% below its 10-year median of 44.15. GuruFocus rates CHA with a GF Score™ of 22/100. The stock has 2 warning signs investors should review. Among 359 Restaurants companies, Chagee Holdings ranks worse than 52.92% 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
Chagee Holdings had a gross margin of 41.58% for the quarter that ended in Mar. 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.
Chagee Holdings Gross Margin % Related Terms
Chagee Holdings Gross Margin % Historical Data
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The historical data trend for Chagee 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, Chagee 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.
Chagee Holdings Gross Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Chagee Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Chagee 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.
Chagee Holdings (CHA) has a Gross Margin % of 41.58% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Chagee Holdings and its competitors. This is near median its historical median of 44.15. Over the past decade, Chagee Holdings' Gross Margin % has ranged from 27.07 to 45.84. According to the industry distribution chart, Chagee Holdings ranks #190 out of 359 companies in the Restaurants industry, placing it in the top 52.9%.
Is Chagee Holdings' Gross Margin % too high?
Chagee Holdings' current Gross Margin % of 41.58% is near median its 10-year median of 44.15. Over the past 10 years, this metric has ranged from a low of 27.07 to a high of 45.84. The Restaurants industry median Gross Margin % is 45.71. Chagee Holdings' value of 41.58% is 9% below this industry median. Based on the distribution chart, Chagee Holdings ranks #190 out of 359 companies in the Restaurants industry, which is below the industry midpoint. Overall, Chagee Holdings has a GF Score™ of 22/100, reflecting its overall financial health beyond just this single metric.
How does Chagee Holdings' Gross Margin % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Chagee Holdings ranks #190 out of 359 companies for Gross Margin %. This places Chagee Holdings in the lower half of its industry. The industry median Gross Margin % is 45.71. Chagee Holdings' value of 41.58% is 9% below this benchmark. Historically, Chagee Holdings' own Gross Margin % has ranged from 27.07 to 45.84 over the past decade. While the company's 10-year median is 44.15 vs. the industry median of 45.71, Chagee 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. Chagee Holdings's current Gross Margin % of 41.58% is 9% 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 Chagee 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. Chagee Holdings's current Gross Margin % is 41.58%, which is near median its own 10-year median of 44.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chagee Holdings stock overvalued right now?
Chagee Holdings (CHA) has a current Gross Margin % of 41.58%. The current Gross Margin % is 41.58%, which is near median its 10-year median of 44.15 and 9% below the Restaurants industry median of 45.71. Chagee Holdings' overall GF Score™ is 22/100 with 2 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 Chagee Holdings (CHA), the current Gross Margin % is 41.58% 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.
Chagee Holdings Ltd is a premium tea drinks brand. It is engaged in the sales of freshly-made tea drinks, related raw materials, packaging, teahouse equipment, and other supplies in the People's Republic of China.
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