Reborn Coffee (Reborn Coffee) Gross Margin % : 71.58% (As of Dec. 2023)

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What is Reborn Coffee Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Reborn Coffee's Gross Profit for the three months ended in Dec. 2023 was $1.29 Mil. Reborn Coffee's Revenue for the three months ended in Dec. 2023 was $1.80 Mil. Therefore, Reborn Coffee's Gross Margin % for the quarter that ended in Dec. 2023 was 71.58%.

The historical rank and industry rank for Reborn Coffee's Gross Margin % or its related term are showing as below:

REBN' s Gross Margin % Range Over the Past 10 Years
Min: -54.98 Med: 62.5 Max: 68.72
Current: 68.72

During the past 5 years, the highest Gross Margin % of Reborn Coffee was 68.72%. The lowest was -54.98%. And the median was 62.50%.

REBN's Gross Margin % is ranked better than
84.55% of 343 companies
in the Restaurants industry
Industry Median: 47.41 vs REBN: 68.72

Reborn Coffee had a gross margin of 71.58% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Reborn Coffee was 0.00% per year.

Reborn Coffee Gross Margin % Historical Data

The historical data trend for Reborn Coffee's Gross Margin % 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.

* Premium members only.

Reborn Coffee Gross Margin % Chart

Reborn Coffee Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

-51.78

-54.98

62.50

65.50

68.69

Reborn Coffee Quarterly Data
	Dec19	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial										65.97	67.11	65.17	70.08	71.58

Competitive Comparison of Reborn Coffee's Gross Margin %

For the Restaurants subindustry, Reborn Coffee's Gross Margin %, along with its competitors' market caps and Gross 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.

Reborn Coffee's Gross Margin % Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Reborn Coffee's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Reborn Coffee's Gross Margin % falls into.

Reborn Coffee Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Reborn Coffee's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	4.1	/	5.954
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(5.954 - 1.864)	/	5.954
	=	68.69 %

Reborn Coffee's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	1.3	/	1.798
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1.798 - 0.511)	/	1.798
	=	71.58 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Reborn Coffee (NAS:REBN) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Reborn Coffee had a gross margin of 71.58% for the quarter that ended in Dec. 2023 => Durable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Reborn Coffee Gross Margin % Related Terms

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Reborn Coffee (Reborn Coffee) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Reborn Coffee Inc (NAS:REBN) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

580 N. Berry Street, Brea, CA, USA, 92821

Website

https://www.reborncoffee.com

Reborn Coffee Inc is an operator and franchisor of retail locations and kiosks that focus on serving specialty-roasted coffee. The company operates in one reportable segment, consisting of both the wholesale and retail sales of coffee, water, and other beverages.

Executives

Nasim Andy Farouk Muhamad	director	NO 21 JALAN SETIABAKTI 9, BUKIT DAMANSARA, KUALA LUMPUR N8 50490
Jay Kim	director, 10 percent owner, officer: CEO	6940 BEACH BLVD SUITE D-705, BUENA PARK CA 90621
Jinwoo Kim	officer: Chief Financial Officer	580 N. BERRY STREET, BREA CA 92821
Hannah Goh	director	580 N. BERRY STREET, BREA CA 92821
Dennis R. Egidi	director	580 N. BERRY STREET, BREA CA 92821
Sehan Kim	director	580 N. BERRY STREET, BREA CA 92821
Farooq M. Arjomand	director, 10 percent owner	580 N. BERRY STREET, BREA CA 92821