TSX:AW's Gross Margin % is not ranked *
in the Restaurants industry.
Industry Median: 45.66 * Ranked among companies with meaningful Gross Margin % only.
A&W Food Services of Canada had a gross margin of N/A% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
A&W Food Services of Canada (TSX:AW) 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
A&W Food Services of Canada had a gross margin of N/A% for the quarter that ended in Mar. 2026 => 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.
A&W Food Services of Canada Gross Margin % Related Terms
A&W Food Services of Canada 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.
TSX:AW vs MCD, SBUX, YUM: Gross Margin % Comparison
For the Restaurants subindustry, A&W Food Services of Canada'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.
A&W Food Services of Canada Gross Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, A&W Food Services of Canada's Gross Margin % distribution charts can be found below:
* The bar in red indicates where A&W Food Services of Canada'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.
A&W Food Services of Canada (TSX:AW) has a Gross Margin % of 0.00% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on A&W Food Services of Canada and its competitors. Over the past decade, A&W Food Services of Canada's Gross Margin % has ranged from 81.67 to 84.93. According to the industry distribution chart, A&W Food Services of Canada ranks #999999 out of 355 companies in the Restaurants industry.
Is A&W Food Services of Canada's Gross Margin % too high?
A&W Food Services of Canada's current Gross Margin % is 0.00%. Over the past 10 years, this metric has ranged from a low of 81.67 to a high of 84.93. Based on the distribution chart, A&W Food Services of Canada ranks #999999 out of 355 companies in the Restaurants industry, which is in the bottom quartile relative to peers. Overall, A&W Food Services of Canada has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does A&W Food Services of Canada's Gross Margin % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, A&W Food Services of Canada ranks #999999 out of 355 companies for Gross Margin %. This places A&W Food Services of Canada in the lower half of its industry. The industry median Gross Margin % is 45.66. Historically, A&W Food Services of Canada's own Gross Margin % has ranged from 81.67 to 84.93 over the past decade. 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 45.66, based on 355 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. 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 A&W Food Services of Canada and its competitors. For the Restaurants industry, the median Gross Margin % is 45.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. A&W Food Services of Canada's current Gross Margin % is 0.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is A&W Food Services of Canada stock overvalued right now?
A&W Food Services of Canada (TSX:AW) has a current Gross Margin % of 0.00%. The current Gross Margin % is 0.00%. A&W Food Services of Canada's overall GF Score™ is 16/100 with 6 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 A&W Food Services of Canada (TSX:AW), the current Gross Margin % is 0.00% 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.
A&W Food Services of Canada Inc is in the business of developing and franchising quick service restaurants in Canada and owns the A&W trademarks used in the A&W quick service restaurant business in Canada. The Company also has one geographic segment as all assets and operations are in Canada.
16GF Score
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