Tung Lok Restaurants(2000)SGX:540 Gross Margin % is 73.46% as of Mar. 2026, which is 2% above its 10-year median of 71.76. The stock has 2 warning signs investors should review. Among 354 Restaurants companies, Tung Lok Restaurants(2000) ranks better than 92.94% on this metric.
Tung Lok Restaurants(2000) (SGX:540) 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
Tung Lok Restaurants(2000) had a gross margin of 73.46% for the quarter that ended in Mar. 2026 => 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.
Tung Lok Restaurants(2000) Gross Margin % Related Terms
Tung Lok Restaurants(2000) 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.
SGX:540 vs MCD, SBUX, YUM: Gross Margin % Comparison
For the Restaurants subindustry, Tung Lok Restaurants(2000)'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.
Tung Lok Restaurants(2000) Gross Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Tung Lok Restaurants(2000)'s Gross Margin % distribution charts can be found below:
* The bar in red indicates where Tung Lok Restaurants(2000)'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.
Tung Lok Restaurants(2000) (SGX:540) has a Gross Margin % of 73.46% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Tung Lok Restaurants(2000) and its competitors. This is near median its historical median of 71.76. Over the past decade, Tung Lok Restaurants(2000)'s Gross Margin % has ranged from 70.70 to 72.77. According to the industry distribution chart, Tung Lok Restaurants(2000) ranks #25 out of 354 companies in the Restaurants industry, placing it in the top 7.1%.
Is Tung Lok Restaurants(2000)'s Gross Margin % too high?
Tung Lok Restaurants(2000)'s current Gross Margin % of 73.46% is near median its 10-year median of 71.76. Over the past 10 years, this metric has ranged from a low of 70.70 to a high of 72.77. The Restaurants industry median Gross Margin % is 45.69. Tung Lok Restaurants(2000)'s value of 73.46% is 60.8% above this industry median. Based on the distribution chart, Tung Lok Restaurants(2000) ranks #25 out of 354 companies in the Restaurants industry, which is in the top quartile — a strong position relative to peers.
How does Tung Lok Restaurants(2000)'s Gross Margin % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Tung Lok Restaurants(2000) ranks #25 out of 354 companies for Gross Margin %. This places Tung Lok Restaurants(2000) in the top 7% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 45.69. Tung Lok Restaurants(2000)'s value of 73.46% is 60.8% above this benchmark. Historically, Tung Lok Restaurants(2000)'s own Gross Margin % has ranged from 70.70 to 72.77 over the past decade. While the company's 10-year median is 71.76 vs. the industry median of 45.69, Tung Lok Restaurants(2000) 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 45.69, 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. Tung Lok Restaurants(2000)'s current Gross Margin % of 73.46% is 60.8% 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 Tung Lok Restaurants(2000) and its competitors. For the Restaurants industry, the median Gross Margin % is 45.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tung Lok Restaurants(2000)'s current Gross Margin % is 73.46%, which is near median its own 10-year median of 71.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tung Lok Restaurants(2000) stock overvalued right now?
Based on GuruFocus' analysis, Tung Lok Restaurants(2000) (SGX:540) is currently considered Possible Value Trap. The stock's GF Value™ is S$0.09, compared to a current price of S$0.05 — trading 40% below its estimated fair value. The current Gross Margin % is 73.46%, which is near median its 10-year median of 71.76 and 60.8% above the Restaurants industry median of 45.69. 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 Tung Lok Restaurants(2000) (SGX:540), the current Gross Margin % is 73.46% 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.
Tung Lok Restaurants(2000) Ltd operates restaurant chains. In addition, the company also provides outdoor events catering services. Its restaurants include LingZhi Vegetarian, Dancing Crab, TungLok Teahouse, Slappy Cakes, My Humble House, and TungLok Signatures. The company generates the majority of its revenue from Singapore. It operates in the business segments namely; Restaurant, Catering, Manufacturing, and Other. The Restaurant segment generates the majority of revenue for the company.
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