The historical rank and industry rank for Meritage Hospitality Group's Pretax Margin % or its related term are showing as below:
MHGU'
s Pretax Margin % Range Over the Past 10 Years
Min: -8.42 Med: 3.52 Max: 4.04
Current: -8.42
MHGU's Pretax Margin % is ranked worse than 82.79% of 366
companies
in the Restaurants industry
Industry Median: 2.755
vs MHGU: -8.42
Meritage Hospitality Group (OTCPK:MHGU) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Meritage Hospitality Group Pretax Margin % Related Terms
Meritage Hospitality Group Pretax 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.
MHGU vs PETZ, GTIM, GENK: Pretax Margin % Comparison
For the Restaurants subindustry, Meritage Hospitality Group's Pretax Margin %, along with its competitors' market caps and Pretax 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.
Meritage Hospitality Group Pretax Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Meritage Hospitality Group's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Meritage Hospitality Group's Pretax 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.
Meritage Hospitality Group (MHGU) has a Pretax Margin % of -9.69% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Meritage Hospitality Group and its competitors. According to the industry distribution chart, Meritage Hospitality Group ranks #303 out of 366 companies in the Restaurants industry, placing it in the top 82.8%.
Is Meritage Hospitality Group's Pretax Margin % too high?
Meritage Hospitality Group's current Pretax Margin % is -9.69%. Based on the distribution chart, Meritage Hospitality Group ranks #303 out of 366 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 Pretax Margin % compare to PETZ and GTIM?
According to the Restaurants industry distribution chart, Meritage Hospitality Group ranks #303 out of 366 companies for Pretax Margin %. This places Meritage Hospitality Group in the lower half of its industry. The industry median Pretax Margin % is 2.76. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for a Restaurants company?
The median Pretax Margin % among Restaurants companies is 2.76, based on 366 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Meritage Hospitality Group and its competitors. For the Restaurants industry, the median Pretax Margin % is 2.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Meritage Hospitality Group's current Pretax Margin % is -9.69%. 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 $2.97 — trading 82.7% below its estimated fair value. The current Pretax Margin % is -9.69%. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Meritage Hospitality Group (MHGU), the current Pretax Margin % is -9.69% 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 $2.97 is trading 82.7% below its estimated GF Value™ of $17.13.
GuruFocus considers Meritage Hospitality Group to be Possible Value Trap.
Key valuation signals for MHGU:
Pretax Margin %: -9.69%
GF Value™: $17.13 vs. price of $2.97 (82.7% 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
Pretax Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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