Hikari Food Service CoTSE:138A -0.37%19 Gross Margin % is 73.43% as of Nov. 2025, which is 2% above its 10-year median of 72.30. GuruFocus rates TSE:138A with a GF Score™ of 19/100. Among 352 Restaurants companies, Hikari Food Service Co ranks better than 93.47% on this metric.
TSE:138A's Gross Margin % is ranked better than 93.47% of 352
companies
in the Restaurants industry
Industry Median: 45.685
vs TSE:138A: 73.15
Hikari Food Service Co had a gross margin of 73.43% for the quarter that ended in Nov. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Hikari Food Service Co was 0.00% per year.
Hikari Food Service Co (TSE:138A) 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
Hikari Food Service Co had a gross margin of 73.43% for the quarter that ended in Nov. 2025 => 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.
Hikari Food Service Co Gross Margin % Related Terms
Hikari Food Service Co Gross Margin % Historical Data
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The historical data trend for Hikari Food Service Co'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.
TSE:138A vs MCD, SBUX, YUM: Gross Margin % Comparison
For the Restaurants subindustry, Hikari Food Service Co'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.
Hikari Food Service Co Gross Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Hikari Food Service Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hikari Food Service Co'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.
Hikari Food Service Co (TSE:138A) has a Gross Margin % of 73.43% as of Nov. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Hikari Food Service Co and its competitors. This is near median its historical median of 72.30. Over the past decade, Hikari Food Service Co's Gross Margin % has ranged from 70.03 to 73.42. According to the industry distribution chart, Hikari Food Service Co ranks #23 out of 352 companies in the Restaurants industry, placing it in the top 6.5%.
Is Hikari Food Service Co's Gross Margin % too high?
Hikari Food Service Co's current Gross Margin % of 73.43% is near median its 10-year median of 72.30. Over the past 10 years, this metric has ranged from a low of 70.03 to a high of 73.42. The Restaurants industry median Gross Margin % is 45.69. Hikari Food Service Co's value of 73.43% is 60.7% above this industry median. Based on the distribution chart, Hikari Food Service Co ranks #23 out of 352 companies in the Restaurants industry, which is in the top quartile — a strong position relative to peers. Overall, Hikari Food Service Co has a GF Score™ of 19/100, reflecting its overall financial health beyond just this single metric.
How does Hikari Food Service Co's Gross Margin % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Hikari Food Service Co ranks #23 out of 352 companies for Gross Margin %. This places Hikari Food Service Co in the top 7% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 45.69. Hikari Food Service Co's value of 73.43% is 60.7% above this benchmark. Historically, Hikari Food Service Co's own Gross Margin % has ranged from 70.03 to 73.42 over the past decade. While the company's 10-year median is 72.30 vs. the industry median of 45.69, Hikari Food Service Co has consistently been above 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 45.69, based on 352 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. Hikari Food Service Co's current Gross Margin % of 73.43% is 60.7% 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 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 Hikari Food Service Co and its competitors. For the Restaurants industry, the median Gross Margin % is 45.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hikari Food Service Co's current Gross Margin % is 73.43%, which is near median its own 10-year median of 72.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hikari Food Service Co stock overvalued right now?
Hikari Food Service Co (TSE:138A) has a current Gross Margin % of 73.43%. The current Gross Margin % is 73.43%, which is near median its 10-year median of 72.30 and 60.7% above the Restaurants industry median of 45.69. Hikari Food Service Co's overall GF Score™ is 19/100. 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 Hikari Food Service Co (TSE:138A), the current Gross Margin % is 73.43% as of Nov. 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.
Hikari Food Service Co Ltd is engaged in the restaurant business in Japan. It mainly provides standing bar-style izakaya restaurants. Some of its restaurants are, Daikoku, Fish Camellia, Kanayamaya Family, and Yakiniku Delux.
19GF Score
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