MHGU (Meritage Hospitality Group) ROCE %: -4.64% (As of Mar. 2026)

What is Meritage Hospitality Group ROCE %?

Meritage Hospitality Group MHGU +0.90% 45 ROCE % is -4.64% as of Mar. 2026. GuruFocus rates MHGU with a GF Score™ of 45/100 and a GF Value™ of $17.12 (Possible Value Trap). The stock has 8 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Meritage Hospitality Group's annualized ROCE % for the quarter that ended in Mar. 2026 was -4.64%.

Meritage Hospitality Group (OTCPK:MHGU) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Meritage Hospitality Group ROCE % Related Terms

Meritage Hospitality Group ROCE % Historical Data

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The historical data trend for Meritage Hospitality Group's ROCE % 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.

Meritage Hospitality Group ROCE % Chart

Meritage Hospitality Group Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Dec25

ROCE %

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4.96

3.27

3.32

2.67

-1.37

Meritage Hospitality Group Quarterly Data
	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25	Jun25	Sep25	Dec25	Mar26
ROCE %	Get a 7-Day Free Trial															-1.52	1.56	-3.21	-2.64	-4.64

45GF Score

Meritage Hospitality Group Inc MHGU

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Meritage Hospitality Group ROCE % Calculation

Meritage Hospitality Group's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2025 )		(A: Dec. 2024 )		(A: Dec. 2025 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2025 )		(A: Dec. 2024 )		(A: Dec. 2025 )
	=	-7.957	/	( ( (810.165 - 136.61)	+	(754.76 - 262.981) )	/ 2 )
	=	-7.957	/	( (673.555	+	491.779)	/ 2 )
	=	-7.957	/	582.667
	=	-1.37 %

Meritage Hospitality Group's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2026 )		(Q: Dec. 2025 )		(Q: Mar. 2026 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2026 )		(Q: Dec. 2025 )		(Q: Mar. 2026 )
	=	-22.744	/	( ( (754.76 - 262.981)	+	(760.548 - 271) )	/ 2 )
	=	-22.744	/	( ( 491.779	+	489.548 )	/ 2 )
	=	-22.744	/	490.6635
	=	-4.64 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

Frequently Asked Questions Learn more about ROCE % →

What does a ROCE % of -4.64% mean?

Meritage Hospitality Group (MHGU) has a ROCE % of -4.64% as of Mar. 2026.

Is Meritage Hospitality Group's ROCE % too high?

Meritage Hospitality Group's current ROCE % is -4.64%. 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 ROCE % compare to PETZ and GTIM?

Meritage Hospitality Group's ROCE % of -4.64% can be compared against companies in the Restaurants industry. The industry median ROCE % is 6.01. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good ROCE % for a Restaurants company?

The median ROCE % among Restaurants companies is 6.01, based on 353 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % 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 ROCE % mean?

A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Restaurants industry, the median ROCE % is 6.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Meritage Hospitality Group's current ROCE % is -4.64%. 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 $17.12, compared to a current price of $2.98 — trading 82.6% below its estimated fair value. The current ROCE % is -4.64%. 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 ROCE % calculated?

ROCE % is calculated from a company's financial statements. For Meritage Hospitality Group (MHGU), the current ROCE % is -4.64% 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 $17.12. GuruFocus considers Meritage Hospitality Group to be Possible Value Trap.

Key valuation signals for MHGU:

ROCE %: -4.64%
GF Value™: $17.12 vs. price of $2.98 (82.6% 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

Industry Consumer Cyclical Restaurants

Comparable Companies PETZ GTIM GENK CCHH REBN NROM BTBD VSTD ARKR CHSN MCD SBUX LSE:CPG CMG YUM TSX:QSR TSX:QSP.UN DRI YUMC TXRH

Other Exchanges MHGUP.PFD:USA

Address 45 Ottawa Avenue SW, Suite 600, Grand Rapids, MI, USA, 49503

Website https://www.meritagehospitality.com

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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$2.98

Price

$17.12

GF Value

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