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
Xiabuxiabu Catering Management (China) Hldgs Co had a gross margin of 32.26% for the quarter that ended in Dec. 2025 => 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.
Xiabuxiabu Catering Management (China) Hldgs Co Gross Margin % Related Terms
Xiabuxiabu Catering Management (China) Hldgs Co 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.
Xiabuxiabu Catering Management (China) Hldgs Co Gross Margin % Chart
Xiabuxiabu Catering Management (China) Hldgs Co Annual Data
* 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.
Xiabuxiabu Catering Management (China) Hldgs Co Gross Margin % vs Restaurants Industry
* 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.
Xiabuxiabu Catering Management (China) Hldgs Co (XIAXF) has a Gross Margin % of 32.26% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Xiabuxiabu Catering Management (China) Hldgs Co and its competitors. This is near median its historical median of 33.14. Over the past decade, Xiabuxiabu Catering Management (China) Hldgs Co's Gross Margin % has ranged from 28.40 to 40.86. According to the industry distribution chart, Xiabuxiabu Catering Management (China) Hldgs Co ranks #253 out of 358 companies in the Restaurants industry, placing it in the top 70.7%.
Is Xiabuxiabu Catering Management (China) Hldgs Co's Gross Margin % too high?
Xiabuxiabu Catering Management (China) Hldgs Co's current Gross Margin % of 32.26% is near median its 10-year median of 33.14. Over the past 10 years, this metric has ranged from a low of 28.40 to a high of 40.86. The Restaurants industry median Gross Margin % is 45.69. Xiabuxiabu Catering Management (China) Hldgs Co's value of 32.26% is 29.4% below this industry median. Based on the distribution chart, Xiabuxiabu Catering Management (China) Hldgs Co ranks #253 out of 358 companies in the Restaurants industry, which is below the industry midpoint. Overall, Xiabuxiabu Catering Management (China) Hldgs Co has a GF Score™ of 48/100, reflecting its overall financial health beyond just this single metric.
How does Xiabuxiabu Catering Management (China) Hldgs Co's Gross Margin % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Xiabuxiabu Catering Management (China) Hldgs Co ranks #253 out of 358 companies for Gross Margin %. This places Xiabuxiabu Catering Management (China) Hldgs Co in the lower half of its industry. The industry median Gross Margin % is 45.69. Xiabuxiabu Catering Management (China) Hldgs Co's value of 32.26% is 29.4% below this benchmark. Historically, Xiabuxiabu Catering Management (China) Hldgs Co's own Gross Margin % has ranged from 28.40 to 40.86 over the past decade. While the company's 10-year median is 33.14 vs. the industry median of 45.69, Xiabuxiabu Catering Management (China) Hldgs Co 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. Xiabuxiabu Catering Management (China) Hldgs Co's current Gross Margin % of 32.26% is 29.4% 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 Xiabuxiabu Catering Management (China) Hldgs Co 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. Xiabuxiabu Catering Management (China) Hldgs Co's current Gross Margin % is 32.26%, which is near median its own 10-year median of 33.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Xiabuxiabu Catering Management (China) Hldgs Co stock overvalued right now?
Xiabuxiabu Catering Management (China) Hldgs Co (XIAXF) has a current Gross Margin % of 32.26%. The stock's GF Value™ is $0.47, compared to a current price of $0.14 — trading 70.7% below its estimated fair value. The current Gross Margin % is 32.26%, which is near median its 10-year median of 33.14 and 29.4% below the Restaurants industry median of 45.69. Xiabuxiabu Catering Management (China) Hldgs Co's overall GF Score™ is 48/100 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 Xiabuxiabu Catering Management (China) Hldgs Co (XIAXF), the current Gross Margin % is 32.26% 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 Xiabuxiabu Catering Management (China) Hldgs Co (XIAXF) Overvalued in 2026?
Based on GuruFocus' analysis, Xiabuxiabu Catering Management (China) Hldgs Co stock appears to be undervalued.
The current stock price of $0.14 is trading 70.7% below its estimated GF Value™ of $0.47.
Key valuation signals for XIAXF:
Gross Margin %: 32.26% (near median its 10-year median of 33.14)
GF Value™: $0.47 vs. price of $0.14 (70.7% below fair value)
Industry Position: 29.4% below the Restaurants median (#253 of 358)
No single metric tells the full story. See the XIAXF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Xiabuxiabu Catering Management (China) Hldgs Co Business Description
Xiabuxiabu Catering Management (China) Hldgs Co Ltd is a China-based multi-brand restaurant operator. The group has two reportable segments: Xiabuxiabu and Coucou. The Xiabuxiabu segment is engaged in restaurant operations and related services under the Xiabuxiabu brand. The Coucou segment is engaged in restaurant operations and related services under the Coucou brand. It generates the majority of its revenue from the Xiabuxiabu segment.
48GF Score
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