MHGU (Meritage Hospitality Group) Moat Score: 4/10 (As of Jun. 29, 2026)


MHGU Meritage Hospitality Group Inc MHGU
45 GF Score
Price $2.85
GF Value $17.13
Valuation Possible Value Trap
! 8 Warning Signs
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What is Meritage Hospitality Group Moat Score?

Meritage Hospitality Group MHGU -4.10% 45 Moat Score is 4 as of Jun. 29, 2026. GuruFocus rates MHGU with a GF Score™ of 45/100 and a GF Value™ of $17.13 (Possible Value Trap). The stock has 8 warning signs investors should review. Among 369 Restaurants companies, Meritage Hospitality Group ranks better than 88.35% on this metric.

Meritage Hospitality Group has the Moat Score of 4, which implies that the company might have Narrow Moat - Discernible but modest moat.

Meritage Hospitality Group has Narrow Moat: MHGU benefits from a modest moat due to its franchise operations in the hospitality sector. It has some brand strength and customer loyalty through its association with established brands. However, it faces significant competition and lacks strong pricing power or proprietary technology.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Meritage Hospitality Group might have Narrow Moat - Discernible but modest moat.

Meritage Hospitality Group  (OTCPK:MHGU) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Meritage Hospitality Group Moat Score Related Terms

MHGU vs ARKR, NROM, GTIM: Moat Score Comparison

For the Restaurants subindustry, Meritage Hospitality Group's Moat Score, along with its competitors' market caps and Moat Score 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 Moat Score vs Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Meritage Hospitality Group's Moat Score distribution charts can be found below:

* The bar in red indicates where Meritage Hospitality Group's Moat Score falls into.


MHGU
45GF Score
Meritage Hospitality Group Inc MHGU
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 4 mean?
Meritage Hospitality Group (MHGU) has a Moat Score of 4 as of Jun. 29, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Meritage Hospitality Group ranks #43 out of 369 companies in the Restaurants industry, placing it in the top 11.7%.
Is Meritage Hospitality Group's Moat Score too high?
Meritage Hospitality Group's current Moat Score is 4. Based on the distribution chart, Meritage Hospitality Group ranks #43 out of 369 companies in the Restaurants industry, which is in the top quartile — a strong position 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 Moat Score compare to ARKR and NROM?
According to the Restaurants industry distribution chart, Meritage Hospitality Group ranks #43 out of 369 companies for Moat Score. This places Meritage Hospitality Group in the top 12% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Restaurants company?
A good Moat Score depends on the Restaurants industry context. However, Moat Score 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 Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Meritage Hospitality Group's current Moat Score is 4. 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 $2.85 — trading 83.4% below its estimated fair value. The current Moat Score is 4. 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 Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Meritage Hospitality Group (MHGU), the current Moat Score is 4 as of Jun. 29, 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 $2.85 is trading 83.4% below its estimated GF Value™ of $17.13. GuruFocus considers Meritage Hospitality Group to be Possible Value Trap.

Key valuation signals for MHGU:

  • Moat Score: 4
  • GF Value™: $17.13 vs. price of $2.85 (83.4% below fair value)
  • GF Score™: 45/100 with 8 warning signs

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 Business Description

Other Exchanges MHGUP.PFD:USA
Address 45 Ottawa Avenue SW, Suite 600, Grand Rapids, MI, USA, 49503
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

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Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$2.85
Price
$17.13
GF Value