Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Meritage Hospitality Group's
Operating Income
for the
three
months ended in Mar. 2026 was $-5.7 Mil. Meritage Hospitality Group's Interest Expense for the
three
months ended in Mar. 2026 was $-3.3 Mil.
did not have earnings to cover the interest expense.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Meritage Hospitality Group's Interest Coverage or its related term are showing as below:
MHGU's Interest Coverage is not ranked *
in the Restaurants industry.
Industry Median: 6.45 * Ranked among companies with meaningful Interest Coverage only.
Meritage Hospitality Group (OTCPK:MHGU) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Meritage Hospitality Group Interest Coverage Related Terms
Meritage Hospitality Group Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
Meritage Hospitality Group Interest Coverage Chart
MHGU vs PETZ, GTIM, GENK: Interest Coverage Comparison
For the Restaurants subindustry, Meritage Hospitality Group's Interest Coverage, along with its competitors' market caps and Interest Coverage 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.
Meritage Hospitality Group Interest Coverage vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Meritage Hospitality Group's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Meritage Hospitality Group's Interest Coverage falls into.
Meritage Hospitality Group Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Meritage Hospitality Group did not have earnings to cover the interest expense.
* 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.
What does a Interest Coverage of 0 (At Loss) mean?
Meritage Hospitality Group (MHGU) has a Interest Coverage of 0 (At Loss) as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Meritage Hospitality Group and its competitors. According to the industry distribution chart, Meritage Hospitality Group ranks #999999 out of 262 companies in the Restaurants industry.
Is Meritage Hospitality Group's Interest Coverage too high?
Meritage Hospitality Group's current Interest Coverage is 0 (At Loss). Based on the distribution chart, Meritage Hospitality Group ranks #999999 out of 262 companies in the Restaurants industry, which is in the bottom quartile relative to peers. Overall, Meritage Hospitality Group has a GF Score™ of 45/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Meritage Hospitality Group's Interest Coverage compare to PETZ and GTIM?
According to the Restaurants industry distribution chart, Meritage Hospitality Group ranks #999999 out of 262 companies for Interest Coverage. This places Meritage Hospitality Group in the lower half of its industry. The industry median Interest Coverage is 6.45. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Restaurants company?
The median Interest Coverage among Restaurants companies is 6.45, based on 262 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Meritage Hospitality Group and its competitors. For the Restaurants industry, the median Interest Coverage is 6.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Meritage Hospitality Group's current Interest Coverage is 0 (At Loss). However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Meritage Hospitality Group stock overvalued right now?
Based on GuruFocus' analysis, Meritage Hospitality Group (MHGU) is currently considered Possible Value Trap. The stock's GF Value™ is $17.13, compared to a current price of $2.98 — trading 82.6% below its estimated fair value. The current Interest Coverage is 0 (At Loss). Meritage Hospitality Group's overall GF Score™ is 45/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Meritage Hospitality Group (MHGU), the current Interest Coverage is 0 (At Loss) 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 Meritage Hospitality Group (MHGU) Overvalued in 2026?
Based on GuruFocus' analysis, Meritage Hospitality Group stock appears to be undervalued.
The current stock price of $2.98 is trading 82.6% below its estimated GF Value™ of $17.13.
GuruFocus considers Meritage Hospitality Group to be Possible Value Trap.
Key valuation signals for MHGU:
Interest Coverage: 0 (At Loss)
GF Value™: $17.13 vs. price of $2.98 (82.6% below fair value)
No single metric tells the full story. See the MHGU stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Meritage Hospitality Group Inc is engaged in operating quick-service and casual dining restaurants across various states in the United States. It operates Wendy's quick-service restaurants across various states under franchise agreements with its franchisor. It also operates independent restaurants under three concepts throughout Michigan, which include Morning Belle restaurants, Stan's Tacos restaurant, and Blue Porch Bar & Grill restaurant. It is focused on the future development and long-term growth of its Morning Belle brand.
45GF Score
Get the complete analysis for MHGU
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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