McDonald's Holdings Co (Japan) (OTCPK:MDNDF) 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
McDonald's Holdings Co (Japan) had a gross margin of 18.67% for the quarter that ended in Dec. 2025 => No sustainable 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.
McDonald's Holdings Co (Japan) Gross Margin % Related Terms
McDonald's Holdings Co (Japan) Gross Margin % 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.
McDonald's Holdings Co (Japan) Gross Margin % Chart
MDNDF vs MCD, SBUX, CMG: Gross Margin % Comparison
For the Restaurants subindustry, McDonald's Holdings Co (Japan)'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.
McDonald's Holdings Co (Japan) Gross Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, McDonald's Holdings Co (Japan)'s Gross Margin % distribution charts can be found below:
* The bar in red indicates where McDonald's Holdings Co (Japan)'s Gross Margin % 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.
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.
McDonald's Holdings Co (Japan) (MDNDF) has a Gross Margin % of 18.67% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on McDonald's Holdings Co (Japan) and its competitors. This is near median its historical median of 19.73. Over the past decade, McDonald's Holdings Co (Japan)'s Gross Margin % has ranged from 13.83 to 21.68. According to the industry distribution chart, McDonald's Holdings Co (Japan) ranks #300 out of 359 companies in the Restaurants industry, placing it in the top 83.6%.
Is McDonald's Holdings Co (Japan)'s Gross Margin % too high?
McDonald's Holdings Co (Japan)'s current Gross Margin % of 18.67% is near median its 10-year median of 19.73. Over the past 10 years, this metric has ranged from a low of 13.83 to a high of 21.68. The Restaurants industry median Gross Margin % is 45.71. McDonald's Holdings Co (Japan)'s value of 18.67% is 59.2% below this industry median. Based on the distribution chart, McDonald's Holdings Co (Japan) ranks #300 out of 359 companies in the Restaurants industry, which is in the bottom quartile relative to peers. Overall, McDonald's Holdings Co (Japan) has a GF Score™ of 74/100, reflecting its overall financial health beyond just this single metric.
How does McDonald's Holdings Co (Japan)'s Gross Margin % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, McDonald's Holdings Co (Japan) ranks #300 out of 359 companies for Gross Margin %. This places McDonald's Holdings Co (Japan) in the lower half of its industry. The industry median Gross Margin % is 45.71. McDonald's Holdings Co (Japan)'s value of 18.67% is 59.2% below this benchmark. Historically, McDonald's Holdings Co (Japan)'s own Gross Margin % has ranged from 13.83 to 21.68 over the past decade. While the company's 10-year median is 19.73 vs. the industry median of 45.71, McDonald's Holdings Co (Japan) has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Restaurants company?
The median Gross Margin % among Restaurants companies is 45.71, based on 359 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. McDonald's Holdings Co (Japan)'s current Gross Margin % of 18.67% is 59.2% 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on McDonald's Holdings Co (Japan) and its competitors. For the Restaurants industry, the median Gross Margin % is 45.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. McDonald's Holdings Co (Japan)'s current Gross Margin % is 18.67%, which is near median its own 10-year median of 19.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is McDonald's Holdings Co (Japan) stock overvalued right now?
McDonald's Holdings Co (Japan) (MDNDF) has a current Gross Margin % of 18.67%. The stock's GF Value™ is $37.86, compared to a current price of $42.00 — trading 10.9% above its estimated fair value. The current Gross Margin % is 18.67%, which is near median its 10-year median of 19.73 and 59.2% below the Restaurants industry median of 45.71. McDonald's Holdings Co (Japan)'s overall GF Score™ is 74/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For McDonald's Holdings Co (Japan) (MDNDF), the current Gross Margin % is 18.67% as of Dec. 2025. 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 McDonald's Holdings Co (Japan) (MDNDF) Overvalued in 2026?
Based on GuruFocus' analysis, McDonald's Holdings Co (Japan) stock appears to be overvalued.
The current stock price of $42.00 is trading 10.9% above its estimated GF Value™ of $37.86.
Key valuation signals for MDNDF:
Gross Margin %: 18.67% (near median its 10-year median of 19.73)
GF Value™: $37.86 vs. price of $42.00 (10.9% above fair value)
Industry Position: 59.2% below the Restaurants median (#300 of 359)
No single metric tells the full story. See the MDNDF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
McDonald's Holdings Co (Japan) Business Description
McDonald's Holdings Co (Japan) Ltd has a license to operate McDonald's fast-food restaurants in Japan. It is engaged in the operation and management of hamburger restaurant chains under the McDonald's brand. The company pays royalties for licensed rights and, in Japan, provides sub-licenses for its know-how and trademarks to franchisees operating its franchise restaurants, from whom it earns royalty income.
74GF Score
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