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Yummy Town (Cayman) Holdings (ROCO:2726) 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
Yummy Town (Cayman) Holdings had a gross margin of 54.90% 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.
Yummy Town (Cayman) Holdings Gross Margin % Related Terms
Yummy Town (Cayman) Holdings 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.
ROCO:2726 vs MCD, SBUX, YUM: Gross Margin % Comparison
For the Restaurants subindustry, Yummy Town (Cayman) 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.
Yummy Town (Cayman) Holdings Gross Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Yummy Town (Cayman) Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Yummy Town (Cayman) 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.
Yummy Town (Cayman) Holdings (ROCO:2726) has a Gross Margin % of 54.90% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Yummy Town (Cayman) Holdings and its competitors. This is near median its historical median of 52.33. Over the past decade, Yummy Town (Cayman) Holdings' Gross Margin % has ranged from 40.54 to 60.69. According to the industry distribution chart, Yummy Town (Cayman) Holdings ranks #97 out of 355 companies in the Restaurants industry, placing it in the top 27.3%.
Is Yummy Town (Cayman) Holdings' Gross Margin % too high?
Yummy Town (Cayman) Holdings' current Gross Margin % of 54.90% is near median its 10-year median of 52.33. Over the past 10 years, this metric has ranged from a low of 40.54 to a high of 60.69. The Restaurants industry median Gross Margin % is 45.34. Yummy Town (Cayman) Holdings' value of 54.90% is 21.1% above this industry median. Based on the distribution chart, Yummy Town (Cayman) Holdings ranks #97 out of 355 companies in the Restaurants industry, which is above the industry midpoint. Overall, Yummy Town (Cayman) Holdings has a GF Score™ of 51/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Yummy Town (Cayman) Holdings' Gross Margin % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Yummy Town (Cayman) Holdings ranks #97 out of 355 companies for Gross Margin %. This puts Yummy Town (Cayman) Holdings in the upper half of its industry. The industry median Gross Margin % is 45.34. Yummy Town (Cayman) Holdings' value of 54.90% is 21.1% above this benchmark. Historically, Yummy Town (Cayman) Holdings' own Gross Margin % has ranged from 40.54 to 60.69 over the past decade. While the company's 10-year median is 52.33 vs. the industry median of 45.34, Yummy Town (Cayman) Holdings 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 45.34, based on 355 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. Yummy Town (Cayman) Holdings's current Gross Margin % of 54.90% is 21.1% 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 Yummy Town (Cayman) Holdings and its competitors. For the Restaurants industry, the median Gross Margin % is 45.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Yummy Town (Cayman) Holdings's current Gross Margin % is 54.90%, which is near median its own 10-year median of 52.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Yummy Town (Cayman) Holdings stock overvalued right now?
Based on GuruFocus' analysis, Yummy Town (Cayman) Holdings (ROCO:2726) is currently considered Possible Value Trap. The stock's GF Value™ is NT$18.22, compared to a current price of NT$8.66 — trading 52.5% below its estimated fair value. The current Gross Margin % is 54.90%, which is near median its 10-year median of 52.33 and 21.1% above the Restaurants industry median of 45.34. Yummy Town (Cayman) Holdings' overall GF Score™ is 51/100 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 Yummy Town (Cayman) Holdings (ROCO:2726), the current Gross Margin % is 54.90% 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 Yummy Town (Cayman) Holdings (ROCO:2726) Overvalued in 2026?
Based on GuruFocus' analysis, Yummy Town (Cayman) Holdings stock appears to be undervalued.
The current stock price of NT$8.66 is trading 52.5% below its estimated GF Value™ of NT$18.22.
GuruFocus considers Yummy Town (Cayman) Holdings to be Possible Value Trap.
Key valuation signals for ROCO:2726:
Gross Margin %: 54.90% (near median its 10-year median of 52.33)
GF Value™: NT$18.22 vs. price of NT$8.66 (52.5% below fair value)
Industry Position: 21.1% above the Restaurants median (#97 of 355)
No single metric tells the full story. See the ROCO:2726 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Yummy Town (Cayman) Holdings Corporation is an investment holding company. The company and its subsidiaries are mainly engaged in the catering business and the collection of franchise fees and royalties. The company operates in two segments namely Catering, and Trade. The maximum revenue is from the Catering segment.
51GF Score
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