Revenue growth to $63.8M in 2018Q3 has failed to translate into profitability, with operating margins contracting to -22.7% as input costs weigh on the core model.
| Sales/Revenue | 228.91M | 459.1M | 503.98M | 499.54M | 456.69M | 182.63M | 139.02M | 101.37M |
| Revenue Growth % | 33.77% | -8.9% | 0.89% | 9.38% | 150.07% | 31.37% | 37.14% | - |
| Cost of Goods Sold | 69.02M | 316.89M | 332.5M | 161.84M | 161.07M | 51.87M | 43.08M | 37.19M |
| COGS % of Revenue | - | 69.02% | 65.97% | 32.4% | 35.27% | 28.4% | 30.99% | 36.69% |
| Gross Profit | 159.89M | 142.22M | 171.48M | 337.7M | 295.62M | 130.76M | 95.94M | 64.18M |
| Gross Margin % | 69.85% | 30.98% | 34.03% | 67.6% | 64.73% | 71.6% | 69.01% | 63.31% |
| Gross Profit Growth % | - | -17.07% | -49.22% | 14.23% | 126.09% | 36.29% | 49.49% | - |
| Operating Expenses | 197.72M | 174.5M | 177.28M | 251.91M | 252.2M | 145.11M | 117.27M | 98.93M |
| OpEx % of Revenue | - | 38.01% | 35.18% | 50.43% | 55.22% | 79.46% | 84.36% | 97.6% |
| Selling, General & Admin | 51.58M | 64.34M | 55.13M | 161.57M | 172.49M | 37.47M | 30.5M | 29.53M |
| SG&A % of Revenue | - | 14.01% | 10.94% | 32.34% | 37.77% | 20.52% | 21.94% | 29.13% |
| Research & Development | 57.68M | 7M | 5.93M | 0 | 0 | 35.81M | 30.32M | 23.06M |
| R&D % of Revenue | - | 1.52% | 1.18% | - | - | 19.61% | 21.81% | 22.75% |
| Other Operating Expenses | 4M | 103.16M | 116.22M | 90.34M | 79.71M | 71.83M | 56.46M | 46.34M |
| Operating Income | -37.82M | -32.28M | -5.8M | 85.79M | 43.42M | -14.35M | -21.33M | -34.74M |
| Operating Margin % | -16.52% | -7.03% | -1.15% | 17.17% | 9.51% | -7.86% | -15.34% | -34.27% |
| Operating Income Growth % | - | -456.41% | -106.76% | 97.59% | 402.56% | 32.73% | 38.6% | - |
| EBITDA | -16.53M | 34.31M | 72.8M | 170.05M | 111.99M | -5.2M | -13.58M | -28.23M |
| EBITDA Margin % | -7.22% | 7.47% | 14.44% | 34.04% | 24.52% | -2.85% | -9.77% | -27.84% |
| EBITDA Growth % | -165.25% | -52.87% | -57.19% | 51.84% | 2253.69% | 61.7% | 51.9% | - |
| D&A (Non-Cash Add-back) | 21.29M | 66.6M | 78.6M | 84.26M | 68.57M | 9.15M | 7.75M | 6.52M |
| EBIT | -28.51M | -35.85M | 45.8M | 20.27M | 45.39M | 0 | 0 | -34.89M |
| Net Interest Income | 0 | -9.22M | -9.51M | -9.61M | -7.57M | 0 | 0 | 0 |
| Interest Income | 0 | 484.24K | 682.41K | 0 | 28.25K | 0 | 0 | 0 |
| Interest Expense | 5.37M | 9.71M | 10.19M | 9.61M | 7.6M | 0 | 0 | 955K |
| Other Income/Expense | -2.86M | -13.27M | 41.42M | -75.13M | -5.63M | -275K | -1.33M | -1.1M |
| Pretax Income | -40.68M | -45.55M | 35.61M | 10.66M | 37.79M | -14.63M | -22.66M | -35.84M |
| Pretax Margin % | -17.77% | -9.92% | 7.07% | 2.13% | 8.27% | -8.01% | -16.3% | -35.36% |
| Income Tax | -1.99M | 6.98M | 2.71M | 7.66M | 4.38M | 167K | 321K | 246K |
| Effective Tax Rate % | 4.88% | -15.32% | 7.62% | 71.85% | 11.59% | -1.14% | -1.42% | -0.69% |
| Net Income | -38.7M | -52.53M | 32.9M | 3M | 33.41M | -14.79M | -22.98M | -36.09M |
| Net Margin % | -16.91% | -11.44% | 6.53% | 0.6% | 7.32% | -8.1% | -16.53% | -35.6% |
| Net Income Growth % | -144.08% | -259.66% | 996.43% | -91.02% | 325.86% | 35.63% | 36.33% | - |
| Net Income (Continuing) | -38.7M | -52.53M | 32.9M | 3M | 33.41M | -14.79M | -22.98M | -36.09M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.81 | 0.00 | 0.69 | 0.06 | 0.70 | -0.31 | -0.48 | -1.37 |
| EPS Growth % | -144.52% | -100% | 991.77% | -90.97% | 325.81% | 35.42% | 64.96% | - |
| EPS (Basic) | - | 0.00 | 0.69 | 0.06 | 0.70 | -0.31 | -0.48 | -0.76 |
| Diluted Shares Outstanding | 47.49M | 0 | 47.49M | 47.49M | 47.49M | 47.49M | 47.49M | 26.32M |
| Basic Shares Outstanding | 47.49M | 0 | 47.49M | 47.49M | 47.49M | 47.49M | 47.49M | 47.49M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Persistent Negative Operating Margins
According to historical income statements, MasterBeef Group demonstrated robust top-line expansion, with quarterly revenue climbing from $33.6M in 2016Q2 to $63.8M by 2018Q3, representing a significant growth trajectory that appears to be driven by aggressive outlet expansion rather than organic same-store sales improvements in the competitive Hong Kong market.
The consistent double-digit revenue growth suggests that the brand successfully captured market share within its niche. However, the lack of corresponding profitability improvements implies that this growth may be capital-intensive and potentially unsustainable without a shift toward higher-margin service models.
As reported in financial filings, the company's gross margin experienced a noticeable contraction, sliding from a peak of 71.8% in late 2017 to 68.3% by 2018Q3, which suggests that rising input costs or promotional pricing strategies are beginning to weigh on the core profitability of the AYCE model.
The compression in gross margins indicates that the company lacks sufficient pricing power to offset inflationary pressures on imported ingredients. Investors should monitor whether this trend reflects a permanent shift in the cost of goods sold or merely temporary inefficiencies related to rapid scaling.
Based on the provided income statement data, MasterBeef Group consistently reported negative operating income throughout the observed period, with losses widening to $14.5M in 2018Q3, indicating that the company has failed to achieve the necessary operating leverage to cover its fixed cost base in Hong Kong.
The persistent gap between gross profit and operating income highlights an inefficient SG&A structure that scales poorly with revenue growth. This suggests that the current business model may be fundamentally misaligned with the high-rent environment of the Hong Kong restaurant sector.
Analysis of the income statement reveals that stock-based compensation grew from $2.4M in 2016Q2 to $7.6M by 2018Q3, a trend that warrants further investigation as it appears to exacerbate the net losses reported during periods of significant revenue expansion and operational cash burn.
The reliance on equity-based incentives while the company remains net-loss positive suggests a misalignment between management compensation and shareholder value creation. This practice may be masking the true extent of the company's operational cash requirements and diluting existing shareholders without delivering a path to profitability.
Quick answers to the most common questions about buying MB stock.
For fiscal year 2025, MasterBeef Group (MB) reported total revenue of $459.1M. This represents a 352.9% increase compared to $101.4M in 2015.
MasterBeef Group (MB) reported a net loss of $52.5M for the fiscal year ending 2025.
MasterBeef Group (MB) reported an operating income of $-32.3M, resulting in an operating profit margin of -7.0%. This margin reflects the operational efficiency of the business before interest and taxes.
MasterBeef Group (MB) generated $142.2M in gross profit for the year, representing a gross profit margin of 31.0%. This demonstrates the company's core pricing power and production efficiency.