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Zensho Holdings CoZSHOF 72 Degree of Operating Leverage is 0.74 as of Mar. 2026. GuruFocus rates ZSHOF with a GF Score™ of 72/100 and a GF Value™ of $46.43 (Fairly Valued). The stock has 6 warning signs investors should review. Among 359 Restaurants companies, Zensho Holdings Co ranks better than 54.04% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Zensho Holdings Co's Degree of Operating Leverage for the quarter that ended in Mar. 2026 was 0.74. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Zensho Holdings Co's Degree of Operating Leverage or its related term are showing as below:
ZSHOF's Degree of Operating Leverage is ranked better than 54.04% of 359
companies
in the Restaurants industry
Industry Median: 1.09
vs ZSHOF: 0.74
Zensho Holdings Co (OTCPK:ZSHOF) Degree of Operating Leverage Explanation
Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.
A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.
Be Aware
The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.
Zensho Holdings Co Degree of Operating Leverage Related Terms
Zensho Holdings Co Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Zensho Holdings Co's Degree of Operating Leverage 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.
Zensho Holdings Co Degree of Operating Leverage Chart
ZSHOF vs MCD, SBUX, CMG: Degree of Operating Leverage Comparison
For the Restaurants subindustry, Zensho Holdings Co's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage 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.
Zensho Holdings Co Degree of Operating Leverage vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Zensho Holdings Co's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Zensho Holdings Co's Degree of Operating Leverage 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.
** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Operating Leverage of 0.74 mean?
Zensho Holdings Co (ZSHOF) has a Degree of Operating Leverage of 0.74 as of Mar. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Zensho Holdings Co and its competitors. According to the industry distribution chart, Zensho Holdings Co ranks #165 out of 359 companies in the Restaurants industry, placing it in the top 46%.
Is Zensho Holdings Co's Degree of Operating Leverage too high?
Zensho Holdings Co's current Degree of Operating Leverage is 0.74. The Restaurants industry median Degree of Operating Leverage is 1.09. Zensho Holdings Co's value of 0.74 is 32.1% below this industry median. Based on the distribution chart, Zensho Holdings Co ranks #165 out of 359 companies in the Restaurants industry, which is above the industry midpoint. Overall, Zensho Holdings Co has a GF Score™ of 72/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Zensho Holdings Co's Degree of Operating Leverage compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Zensho Holdings Co ranks #165 out of 359 companies for Degree of Operating Leverage. This puts Zensho Holdings Co in the upper half of its industry. The industry median Degree of Operating Leverage is 1.09. Zensho Holdings Co's value of 0.74 is 32.1% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for a Restaurants company?
The median Degree of Operating Leverage among Restaurants companies is 1.09, based on 359 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Zensho Holdings Co's current Degree of Operating Leverage of 0.74 is 32.1% below 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 Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Zensho Holdings Co and its competitors. For the Restaurants industry, the median Degree of Operating Leverage is 1.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zensho Holdings Co's current Degree of Operating Leverage is 0.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zensho Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, Zensho Holdings Co (ZSHOF) is currently considered Fairly Valued. The stock's GF Value™ is $46.43, compared to a current price of $57.66 — trading 24.2% above its estimated fair value. The current Degree of Operating Leverage is 0.74 and 32.1% below the Restaurants industry median of 1.09. Zensho Holdings Co's overall GF Score™ is 72/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For Zensho Holdings Co (ZSHOF), the current Degree of Operating Leverage is 0.74 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 Zensho Holdings Co (ZSHOF) Overvalued in 2026?
Based on GuruFocus' analysis, Zensho Holdings Co stock appears to be overvalued.
The current stock price of $57.66 is trading 24.2% above its estimated GF Value™ of $46.43.
GuruFocus considers Zensho Holdings Co to be Fairly Valued.
Key valuation signals for ZSHOF:
Degree of Operating Leverage: 0.74
GF Value™: $46.43 vs. price of $57.66 (24.2% above fair value)
Industry Position: 32.1% below the Restaurants median (#165 of 359)
No single metric tells the full story. See the ZSHOF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zensho Holdings Co Ltd is a Japan-based company engaged management of food service chain restaurants and the development of sales systems and food processing systems. It operates a wide range of food-related businesses through segments including Global Sukiya, Global Hama Sushi, Global Fast Food, Restaurant, and Retail. The group manages the domestic and international expansion of the beef bowl chain Sukiya and the sushi chain Hamazushi, develops various fast-food businesses, operates restaurants in Japan and overseas, and manages supermarkets and related retail operations.
72GF Score
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