Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Kafelaku Coffee HoldingHKSE:01869 -1.96% Gross Margin % is 56.49% as of Dec. 2025, which is 10% below its 10-year median of 62.98. The stock has 3 warning signs investors should review. Among 354 Restaurants companies, Kafelaku Coffee Holding ranks better than 68.93% 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
Kafelaku Coffee Holding had a gross margin of 56.49% for the quarter that ended in Dec. 2025 => 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.
Kafelaku Coffee Holding Gross Margin % Related Terms
Kafelaku Coffee 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.
HKSE:01869 vs MCD, SBUX, YUM: Gross Margin % Comparison
For the Restaurants subindustry, Kafelaku Coffee 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.
Kafelaku Coffee Holding Gross Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Kafelaku Coffee Holding's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Kafelaku Coffee 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.
Kafelaku Coffee Holding (HKSE:01869) has a Gross Margin % of 56.49% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Kafelaku Coffee Holding and its competitors. This is 10% below median its historical median of 62.98. Over the past decade, Kafelaku Coffee Holding's Gross Margin % has ranged from 58.08 to 70.60. According to the industry distribution chart, Kafelaku Coffee Holding ranks #110 out of 354 companies in the Restaurants industry, placing it in the top 31.1%.
Is Kafelaku Coffee Holding's Gross Margin % too high?
Kafelaku Coffee Holding's current Gross Margin % of 56.49% is 10% below median its 10-year median of 62.98. Over the past 10 years, this metric has ranged from a low of 58.08 to a high of 70.60. The Restaurants industry median Gross Margin % is 45.65. Kafelaku Coffee Holding's value of 56.49% is 23.8% above this industry median. Based on the distribution chart, Kafelaku Coffee Holding ranks #110 out of 354 companies in the Restaurants industry, which is above the industry midpoint.
How does Kafelaku Coffee Holding's Gross Margin % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Kafelaku Coffee Holding ranks #110 out of 354 companies for Gross Margin %. This puts Kafelaku Coffee Holding in the upper half of its industry. The industry median Gross Margin % is 45.65. Kafelaku Coffee Holding's value of 56.49% is 23.8% above this benchmark. Historically, Kafelaku Coffee Holding's own Gross Margin % has ranged from 58.08 to 70.60 over the past decade. While the company's 10-year median is 62.98 vs. the industry median of 45.65, Kafelaku Coffee Holding 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 45.65, 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. Kafelaku Coffee Holding's current Gross Margin % of 56.49% is 23.8% 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 Kafelaku Coffee Holding and its competitors. For the Restaurants industry, the median Gross Margin % is 45.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kafelaku Coffee Holding's current Gross Margin % is 56.49%, which is 10% below median its own 10-year median of 62.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kafelaku Coffee Holding stock overvalued right now?
Based on GuruFocus' analysis, Kafelaku Coffee Holding (HKSE:01869) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.08, compared to a current price of HK$0.05 — trading 37.5% below its estimated fair value. The current Gross Margin % is 56.49%, which is 10% below median its 10-year median of 62.98 and 23.8% above the Restaurants industry median of 45.65. 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 Kafelaku Coffee Holding (HKSE:01869), the current Gross Margin % is 56.49% 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.
Kafelaku Coffee Holding Ltd is an investment holding company. Along with its subsidiaries, it is principally engaged in providing food and beverage services in Hong Kong and the PRC, including Chinese catering services and coffee services. The group operates franchised coffee shops under the brand name Kafelaku Coffee and full-service Chinese restaurants. Its reportable operating segments are Food catering and Beverage. A majority of its revenue is generated from the Food catering segment, which represents restaurant operations delivering Cantonese cuisine, Chinese banquets, and dining services. The Beverage segment represents the group's coffee operations. Geographically, it derives maximum revenue from the People's Republic of China (PRC).
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
HKSE:01869 has been successfully added to your 
