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
Pizza Pizza Royalty had a gross margin of 10.67% 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.
Pizza Pizza Royalty Gross Margin % Related Terms
Pizza Pizza Royalty Gross Margin % Historical Data
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The historical data trend for Pizza Pizza Royalty'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.
PZRIF vs MCD, SBUX, CMG: Gross Margin % Comparison
For the Restaurants subindustry, Pizza Pizza Royalty'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.
Pizza Pizza Royalty Gross Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Pizza Pizza Royalty's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Pizza Pizza Royalty'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.
Pizza Pizza Royalty (PZRIF) has a Gross Margin % of 10.67% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Pizza Pizza Royalty and its competitors. According to the industry distribution chart, Pizza Pizza Royalty ranks #228 out of 359 companies in the Restaurants industry, placing it in the top 63.5%.
Is Pizza Pizza Royalty's Gross Margin % too high?
Pizza Pizza Royalty's current Gross Margin % is 10.67%. The Restaurants industry median Gross Margin % is 45.71. Pizza Pizza Royalty's value of 10.67% is 76.7% below this industry median. Based on the distribution chart, Pizza Pizza Royalty ranks #228 out of 359 companies in the Restaurants industry, which is below the industry midpoint. Overall, Pizza Pizza Royalty has a GF Score™ of 60/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Pizza Pizza Royalty's Gross Margin % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Pizza Pizza Royalty ranks #228 out of 359 companies for Gross Margin %. This places Pizza Pizza Royalty in the lower half of its industry. The industry median Gross Margin % is 45.71. Pizza Pizza Royalty's value of 10.67% is 76.7% below this benchmark. 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. Pizza Pizza Royalty's current Gross Margin % of 10.67% is 76.7% 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 Pizza Pizza Royalty 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. Pizza Pizza Royalty's current Gross Margin % is 10.67%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pizza Pizza Royalty stock overvalued right now?
Based on GuruFocus' analysis, Pizza Pizza Royalty (PZRIF) is currently considered Possible Value Trap. The stock's GF Value™ is $24.03, compared to a current price of $9.25 — trading 61.5% below its estimated fair value. The current Gross Margin % is 10.67% and 76.7% below the Restaurants industry median of 45.71. Pizza Pizza Royalty's overall GF Score™ is 60/100 with 5 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 Pizza Pizza Royalty (PZRIF), the current Gross Margin % is 10.67% 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 Pizza Pizza Royalty (PZRIF) Overvalued in 2026?
Based on GuruFocus' analysis, Pizza Pizza Royalty stock appears to be undervalued.
The current stock price of $9.25 is trading 61.5% below its estimated GF Value™ of $24.03.
GuruFocus considers Pizza Pizza Royalty to be Possible Value Trap.
Key valuation signals for PZRIF:
Gross Margin %: 10.67%
GF Value™: $24.03 vs. price of $9.25 (61.5% below fair value)
Industry Position: 76.7% below the Restaurants median (#228 of 359)
No single metric tells the full story. See the PZRIF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pizza Pizza Royalty Corp through its subsidiary, Pizza Pizza Royalty Limited Partnership, owns and franchises quick-service restaurants under the Pizza Pizza and Pizza 73 brands. It receives the benefit of Pizza Pizza Royalty and Pizza 73 Royalty payable by PPL under the Pizza Pizza Licence and Royalty Agreement and the Pizza 73 Licence and Royalty Agreement, respectively, as well as royalty payments under the international agreement, indirectly through its interests in the partnership.
60GF 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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