The One Group HospitalitySTKS +3.52%75 Gross Margin % is 20.32% as of Mar. 2026, which is 2% below its 10-year median of 20.79. GuruFocus rates STKS with a GF Score™ of 75/100 and a GF Value™ of $5.68 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 358 Restaurants companies, The One Group Hospitality ranks worse than 87.15% on this metric.
The One Group Hospitality (NAS:STKS) 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
The One Group Hospitality had a gross margin of 20.32% for the quarter that ended in Mar. 2026 => Competition eroding margins
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.
The One Group Hospitality Gross Margin % Related Terms
The One Group Hospitality 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.
STKS vs THCH, RAVE, BDL: Gross Margin % Comparison
For the Restaurants subindustry, The One Group Hospitality'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.
The One Group Hospitality Gross Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, The One Group Hospitality's Gross Margin % distribution charts can be found below:
* The bar in red indicates where The One Group Hospitality'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.
The One Group Hospitality (STKS) has a Gross Margin % of 20.32% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on The One Group Hospitality and its competitors. This is near median its historical median of 20.79. Over the past decade, The One Group Hospitality's Gross Margin % has ranged from 14.71 to 24.44. According to the industry distribution chart, The One Group Hospitality ranks #312 out of 358 companies in the Restaurants industry, placing it in the top 87.2%.
Is The One Group Hospitality's Gross Margin % too high?
The One Group Hospitality's current Gross Margin % of 20.32% is near median its 10-year median of 20.79. Over the past 10 years, this metric has ranged from a low of 14.71 to a high of 24.44. The Restaurants industry median Gross Margin % is 45.69. The One Group Hospitality's value of 20.32% is 55.5% below this industry median. Based on the distribution chart, The One Group Hospitality ranks #312 out of 358 companies in the Restaurants industry, which is in the bottom quartile relative to peers. Overall, The One Group Hospitality has a GF Score™ of 75/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does The One Group Hospitality's Gross Margin % compare to THCH and RAVE?
According to the Restaurants industry distribution chart, The One Group Hospitality ranks #312 out of 358 companies for Gross Margin %. This places The One Group Hospitality in the lower half of its industry. The industry median Gross Margin % is 45.69. The One Group Hospitality's value of 20.32% is 55.5% below this benchmark. Historically, The One Group Hospitality's own Gross Margin % has ranged from 14.71 to 24.44 over the past decade. While the company's 10-year median is 20.79 vs. the industry median of 45.69, The One Group Hospitality has consistently been below 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 358 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. The One Group Hospitality's current Gross Margin % of 20.32% is 55.5% 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 The One Group Hospitality 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. The One Group Hospitality's current Gross Margin % is 20.32%, which is near median its own 10-year median of 20.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The One Group Hospitality stock overvalued right now?
Based on GuruFocus' analysis, The One Group Hospitality (STKS) is currently considered Possible Value Trap. The stock's GF Value™ is $5.68, compared to a current price of $2.03 — trading 64.3% below its estimated fair value. The current Gross Margin % is 20.32%, which is near median its 10-year median of 20.79 and 55.5% below the Restaurants industry median of 45.69. The One Group Hospitality's overall GF Score™ is 75/100 with 7 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 The One Group Hospitality (STKS), the current Gross Margin % is 20.32% 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 The One Group Hospitality (STKS) Overvalued in 2026?
Based on GuruFocus' analysis, The One Group Hospitality stock appears to be undervalued.
The current stock price of $2.03 is trading 64.3% below its estimated GF Value™ of $5.68.
GuruFocus considers The One Group Hospitality to be Possible Value Trap.
Key valuation signals for STKS:
Gross Margin %: 20.32% (near median its 10-year median of 20.79)
GF Value™: $5.68 vs. price of $2.03 (64.3% below fair value)
Industry Position: 55.5% below the Restaurants median (#312 of 358)
No single metric tells the full story. See the STKS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The One Group Hospitality Inc is a restaurant company that develops, owns and operates, manages and licenses upscale and polished casual, high-energy restaurants and lounges and provides turn-key food and beverage (F&B) services for hospitality venues, including hotels, casinos, and other high-end locations internationally. The company operates through three segments: STK, Benihana and Grill Concepts. The company generates the vast majority of its revenue from the domestic market.
75GF Score
Get the complete analysis for STKS
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