Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Meritage Hospitality Group's 3-Year RORE % for the quarter that ended in Mar. 2026 was 127.70%.
The industry rank for Meritage Hospitality Group's 3-Year RORE % or its related term are showing as below:
MHGU's 3-Year RORE % is ranked better than 91.74% of 327
companies
in the Restaurants industry
Industry Median: 8.92
vs MHGU: 127.70
Meritage Hospitality Group (OTCPK:MHGU) 3-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Meritage Hospitality Group 3-Year RORE % Related Terms
Meritage Hospitality Group 3-Year RORE % 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 ARKR, NROM, GTIM: 3-Year RORE % Comparison
For the Restaurants subindustry, Meritage Hospitality Group's 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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 3-Year RORE % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Meritage Hospitality Group's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Meritage Hospitality Group's 3-Year RORE % 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.
In the calculation of 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.
Meritage Hospitality Group (MHGU) has a 3-Year RORE % of 127.70 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Meritage Hospitality Group and its competitors. According to the industry distribution chart, Meritage Hospitality Group ranks #27 out of 327 companies in the Restaurants industry, placing it in the top 8.3%.
Is Meritage Hospitality Group's 3-Year RORE % too high?
Meritage Hospitality Group's current 3-Year RORE % is 127.70. The Restaurants industry median 3-Year RORE % is 8.92. Meritage Hospitality Group's value of 127.70 is 1331.6% above this industry median. Based on the distribution chart, Meritage Hospitality Group ranks #27 out of 327 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 51/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Meritage Hospitality Group's 3-Year RORE % compare to ARKR and NROM?
According to the Restaurants industry distribution chart, Meritage Hospitality Group ranks #27 out of 327 companies for 3-Year RORE %. This places Meritage Hospitality Group in the top 8% of its industry — outperforming the majority of peers. The industry median 3-Year RORE % is 8.92. Meritage Hospitality Group's value of 127.70 is 1331.6% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for a Restaurants company?
The median 3-Year RORE % among Restaurants companies is 8.92, based on 327 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Meritage Hospitality Group's current 3-Year RORE % of 127.70 is 1331.6% above 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 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Meritage Hospitality Group and its competitors. For the Restaurants industry, the median 3-Year RORE % is 8.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Meritage Hospitality Group's current 3-Year RORE % is 127.70. 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 $17.16, compared to a current price of $2.95 — trading 82.8% below its estimated fair value. The current 3-Year RORE % is 127.70 and 1331.6% above the Restaurants industry median of 8.92. Meritage Hospitality Group's overall GF Score™ is 51/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Meritage Hospitality Group (MHGU), the current 3-Year RORE % is 127.70 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 $2.95 is trading 82.8% below its estimated GF Value™ of $17.16.
GuruFocus considers Meritage Hospitality Group to be Possible Value Trap.
Key valuation signals for MHGU:
3-Year RORE %: 127.70
GF Value™: $17.16 vs. price of $2.95 (82.8% below fair value)
Industry Position: 1331.6% above the Restaurants median (#27 of 327)
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.
51GF Score
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