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
Mitchells & Butlers had a gross margin of N/A% for the quarter that ended in Mar. 2026 => No sustainable 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.
Mitchells & Butlers Gross Margin % Related Terms
Mitchells & Butlers Gross Margin % Historical Data
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The historical data trend for Mitchells & Butlers'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.
MBPFF vs MCD, SBUX, CMG: Gross Margin % Comparison
For the Restaurants subindustry, Mitchells & Butlers'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.
Mitchells & Butlers Gross Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Mitchells & Butlers's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Mitchells & Butlers'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.
Mitchells & Butlers (MBPFF) has a Gross Margin % of 0.00% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Mitchells & Butlers and its competitors. Over the past decade, Mitchells & Butlers' Gross Margin % has ranged from 37.11 to 45.03. According to the industry distribution chart, Mitchells & Butlers ranks #227 out of 359 companies in the Restaurants industry, placing it in the top 63.2%.
Is Mitchells & Butlers' Gross Margin % too high?
Mitchells & Butlers' current Gross Margin % is 0.00%. Over the past 10 years, this metric has ranged from a low of 37.11 to a high of 45.03. Based on the distribution chart, Mitchells & Butlers ranks #227 out of 359 companies in the Restaurants industry, which is below the industry midpoint. Overall, Mitchells & Butlers has a GF Score™ of 81/100, reflecting its overall financial health beyond just this single metric.
How does Mitchells & Butlers' Gross Margin % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Mitchells & Butlers ranks #227 out of 359 companies for Gross Margin %. This places Mitchells & Butlers in the lower half of its industry. The industry median Gross Margin % is 45.71. Historically, Mitchells & Butlers' own Gross Margin % has ranged from 37.11 to 45.03 over the past decade. 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. 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 Mitchells & Butlers 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. Mitchells & Butlers's current Gross Margin % is 0.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mitchells & Butlers stock overvalued right now?
Mitchells & Butlers (MBPFF) has a current Gross Margin % of 0.00%. The stock's GF Value™ is $3.83, compared to a current price of $3.41 — trading 11% below its estimated fair value. The current Gross Margin % is 0.00%. Mitchells & Butlers' overall GF Score™ is 81/100 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 Mitchells & Butlers (MBPFF), the current Gross Margin % is 0.00% 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 Mitchells & Butlers (MBPFF) Overvalued in 2026?
Based on GuruFocus' analysis, Mitchells & Butlers stock appears to be undervalued.
The current stock price of $3.41 is trading 11% below its estimated GF Value™ of $3.83.
Key valuation signals for MBPFF:
Gross Margin %: 0.00%
GF Value™: $3.83 vs. price of $3.41 (11% below fair value)
No single metric tells the full story. See the MBPFF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mitchells & Butlers PLC operates and manages pubs and pub restaurants in the United Kingdom and Germany. The group's properties operate under the brands Vintage Inns, Stonehouse, Toby Carvery, Harvester, Sizzling Pub Co., All Bar One, Ember Inns, and others. Its geographic segments include the UK and Germany of which it generates the majority of its revenue from the UK.
81GF Score
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