Haidilao International HoldingFRA:8HI +0.59%83 Gross Margin % is 26.57% as of Dec. 2025, which is 1% below its 10-year median of 26.72. GuruFocus rates FRA:8HI with a GF Score™ of 83/100 and a GF Value™ of €1.98 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 353 Restaurants companies, Haidilao International Holding ranks worse than 79.32% on this metric.
Haidilao International Holding (FRA:8HI) 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
Haidilao International Holding had a gross margin of 26.57% for the quarter that ended in Dec. 2025 => 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.
Haidilao International Holding Gross Margin % Related Terms
Haidilao International Holding Gross Margin % 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.
Haidilao International Holding Gross Margin % Chart
FRA:8HI vs MCD, SBUX, YUM: Gross Margin % Comparison
For the Restaurants subindustry, Haidilao International Holding'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.
Haidilao International Holding Gross Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Haidilao International Holding's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Haidilao International Holding'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.
Haidilao International Holding (FRA:8HI) has a Gross Margin % of 26.57% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Haidilao International Holding and its competitors. This is near median its historical median of 26.72. Over the past decade, Haidilao International Holding's Gross Margin % has ranged from 19.09 to 33.10. According to the industry distribution chart, Haidilao International Holding ranks #280 out of 353 companies in the Restaurants industry, placing it in the top 79.3%.
Is Haidilao International Holding's Gross Margin % too high?
Haidilao International Holding's current Gross Margin % of 26.57% is near median its 10-year median of 26.72. Over the past 10 years, this metric has ranged from a low of 19.09 to a high of 33.10. The Restaurants industry median Gross Margin % is 45.71. Haidilao International Holding's value of 26.57% is 41.9% below this industry median. Based on the distribution chart, Haidilao International Holding ranks #280 out of 353 companies in the Restaurants industry, which is in the bottom quartile relative to peers. Overall, Haidilao International Holding has a GF Score™ of 83/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Haidilao International Holding's Gross Margin % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Haidilao International Holding ranks #280 out of 353 companies for Gross Margin %. This places Haidilao International Holding in the lower half of its industry. The industry median Gross Margin % is 45.71. Haidilao International Holding's value of 26.57% is 41.9% below this benchmark. Historically, Haidilao International Holding's own Gross Margin % has ranged from 19.09 to 33.10 over the past decade. While the company's 10-year median is 26.72 vs. the industry median of 45.71, Haidilao International Holding 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 353 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. Haidilao International Holding's current Gross Margin % of 26.57% is 41.9% 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 Haidilao International Holding 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. Haidilao International Holding's current Gross Margin % is 26.57%, which is near median its own 10-year median of 26.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Haidilao International Holding stock overvalued right now?
Based on GuruFocus' analysis, Haidilao International Holding (FRA:8HI) is currently considered Significantly Undervalued. The stock's GF Value™ is €1.98, compared to a current price of €1.20 — trading 39.4% below its estimated fair value. The current Gross Margin % is 26.57%, which is near median its 10-year median of 26.72 and 41.9% below the Restaurants industry median of 45.71. Haidilao International Holding's overall GF Score™ is 83/100 with 1 warning sign 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 Haidilao International Holding (FRA:8HI), the current Gross Margin % is 26.57% as of Dec. 2025. 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 Haidilao International Holding (FRA:8HI) Overvalued in 2026?
Based on GuruFocus' analysis, Haidilao International Holding stock appears to be undervalued.
The current stock price of €1.20 is trading 39.4% below its estimated GF Value™ of €1.98.
GuruFocus considers Haidilao International Holding to be Significantly Undervalued.
Key valuation signals for FRA:8HI:
Gross Margin %: 26.57% (near median its 10-year median of 26.72)
GF Value™: €1.98 vs. price of €1.20 (39.4% below fair value)
Industry Position: 41.9% below the Restaurants median (#280 of 353)
No single metric tells the full story. See the FRA:8HI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Haidilao International Holding Business Description
Haidilao, founded in Sichuan in 1998, is a prominent Chinese hot pot restaurant operator. Following the spinoff of its international unit Super Hi, Haidilao now focuses solely on managing restaurants in Greater China.By the end of 2024, the chain operated over 1,300 stores in Greater China, generating more than CNY 40 billion in systemwide sales, making it one of the largest restaurant operators in China. The majority of its restaurants are company-owned, with only a small fraction franchised.
83GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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