TH InternationalTHCH -9.38%52 Gross Margin % is 12.42% as of Mar. 2026, which is 280% above its 10-year median of 3.27. GuruFocus rates THCH with a GF Score™ of 52/100 and a GF Value™ of $2.93 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 359 Restaurants companies, TH International ranks worse than 90.25% on this metric.
The historical rank and industry rank for TH International's Gross Margin % or its related term are showing as below:
THCH'
s Gross Margin % Range Over the Past 10 Years
Min: -29.95 Med: 3.27 Max: 15.9
Current: 15.43
During the past 7 years, the highestGross Margin % of TH International was 15.90%. The lowest was -29.95%. And the median was 3.27%.
THCH's Gross Margin % is ranked worse than 90.25% of 359
companies
in the Restaurants industry
Industry Median: 45.71
vs THCH: 15.43
TH International had a gross margin of 12.42% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for TH International was 54.20% per year.
TH International (NAS:THCH) 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
TH International had a gross margin of 12.42% 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.
TH International Gross Margin % Related Terms
TH International Gross Margin % Historical Data
* Premium members only.
The historical data trend for TH International'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.
THCH vs BDL, STKS, NDLS: Gross Margin % Comparison
For the Restaurants subindustry, TH International'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.
TH International Gross Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, TH International's Gross Margin % distribution charts can be found below:
* The bar in red indicates where TH International'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.
TH International (THCH) has a Gross Margin % of 12.42% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on TH International and its competitors. This is 280% above median its historical median of 3.27. According to the industry distribution chart, TH International ranks #324 out of 359 companies in the Restaurants industry, placing it in the top 90.3%.
Is TH International's Gross Margin % too high?
TH International's current Gross Margin % of 12.42% is 280% above median its 10-year median of 3.27. The Restaurants industry median Gross Margin % is 45.71. TH International's value of 12.42% is 72.8% below this industry median. Based on the distribution chart, TH International ranks #324 out of 359 companies in the Restaurants industry, which is in the bottom quartile relative to peers. Overall, TH International has a GF Score™ of 52/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does TH International's Gross Margin % compare to BDL and STKS?
According to the Restaurants industry distribution chart, TH International ranks #324 out of 359 companies for Gross Margin %. This places TH International in the lower half of its industry. The industry median Gross Margin % is 45.71. TH International's value of 12.42% is 72.8% below this benchmark. While the company's 10-year median is 3.27 vs. the industry median of 45.71, TH International 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 45.71, 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. TH International's current Gross Margin % of 12.42% is 72.8% 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 TH International 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. TH International's current Gross Margin % is 12.42%, which is 280% above median its own 10-year median of 3.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TH International stock overvalued right now?
Based on GuruFocus' analysis, TH International (THCH) is currently considered Possible Value Trap. The stock's GF Value™ is $2.93, compared to a current price of $1.45 — trading 50.5% below its estimated fair value. The current Gross Margin % is 12.42%, which is 280% above median its 10-year median of 3.27 and 72.8% below the Restaurants industry median of 45.71. TH International's overall GF Score™ is 52/100 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 TH International (THCH), the current Gross Margin % is 12.42% 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 TH International (THCH) Overvalued in 2026?
Based on GuruFocus' analysis, TH International stock appears to be undervalued.
The current stock price of $1.45 is trading 50.5% below its estimated GF Value™ of $2.93.
GuruFocus considers TH International to be Possible Value Trap.
Key valuation signals for THCH:
Gross Margin %: 12.42% (280% above median its 10-year median of 3.27)
GF Value™: $2.93 vs. price of $1.45 (50.5% below fair value)
Industry Position: 72.8% below the Restaurants median (#324 of 359)
No single metric tells the full story. See the THCH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
TH International Ltd is the exclusive master franchisee in China for Tim Hortons, a world-wide coffee and bakery shop brand. Through the Tim Hortons brand, the firm offers freshly brewed coffee, tea, and other beverages, bakery & sides, and sandwiches. The Company operated under a single reportable segment, Tim Hortons. The company's revenue is derived from sales of food, beverages, and packaged products by company-owned and operated stores, franchise fees, and revenue from other franchise support activities. Its geographic revenue is derived from operations in the PRC.
52GF Score
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