Choice Hotels International (FRA:CZH) Operating Income: €372 Mil (TTM As of Mar. 2026)

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FRA:CZH Choice Hotels International Inc FRA:CZH
85 GF Score
Price €92.50
GF Value €119.22
! 4 Warning Signs
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What is Choice Hotels International Operating Income?

Choice Hotels International FRA:CZH -2.63% 85 Operating Income is €372 Mil as of Mar. 2026. GuruFocus rates FRA:CZH with a GF Score™ of 85/100 and a GF Value™ of €119.22. The stock has 4 warning signs investors should review.

Choice Hotels International's Operating Income for the three months ended in Mar. 2026 was €52 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was €372 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Choice Hotels International's Operating Income for the three months ended in Mar. 2026 was €52 Mil. Choice Hotels International's Revenue for the three months ended in Mar. 2026 was €295 Mil. Therefore, Choice Hotels International's Operating Margin % for the quarter that ended in Mar. 2026 was 17.70%.

Good Sign:

Choice Hotels International Inc operating margin is expanding. Margin expansion is usually a good sign.

Choice Hotels International's 5-Year average Growth Rate for Operating Margin % was 3.80% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Choice Hotels International's annualized ROC % for the quarter that ended in Mar. 2026 was 5.89%. Choice Hotels International's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 30.06%.


Choice Hotels International  (FRA:CZH) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Choice Hotels International's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=208.536 * ( 1 - 33.01% )/( (2377.583 + 2365.689)/ 2 )
=139.6982664/2371.636
=5.89 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=2492.145 - 166.907 - ( 38.427 - max(0, 399.067 - 346.722+38.427))
=2377.583

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=2547.067 - 201.458 - ( 37.949 - max(0, 375.4 - 355.32+37.949))
=2365.689

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Choice Hotels International's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=187.78/( ( (620.825 + max(-175.983, 0)) + (628.372 + max(-118.008, 0)) )/ 2 )
=187.78/( ( 620.825 + 628.372 )/ 2 )
=187.78/624.5985
=30.06 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(177.197 + 0 + 38.744) - (166.907 + 85.996 + 139.021)
=-175.983

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(210.637 + 0 + 46.755) - (201.458 + 97.618 + 76.324)
=-118.008

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Choice Hotels International's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2026 )/Revenue (Q: Mar. 2026 )
=52.134/294.597
=17.70 %

* 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.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Choice Hotels International Operating Income Related Terms


Choice Hotels International Operating Income Historical Data

* Premium members only.

The historical data trend for Choice Hotels International's Operating Income 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.

Choice Hotels International Operating Income Chart

Choice Hotels International Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 379.84 473.82 398.48 459.36 386.95

Choice Hotels International Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 74.03 108.33 122.61 89.00 52.13
FRA:CZH
85GF Score
Choice Hotels International Inc FRA:CZH
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Choice Hotels International Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €372 Mil.

* 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.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of €372 Mil mean?
Choice Hotels International (FRA:CZH) has a Operating Income of €372 Mil as of Mar. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Choice Hotels International and its competitors.
Is Choice Hotels International's Operating Income too high?
Choice Hotels International's current Operating Income is €372 Mil. Overall, Choice Hotels International has a GF Score™ of 85/100, reflecting its overall financial health beyond just this single metric.
How does Choice Hotels International's Operating Income compare to WH and CVEO?
Choice Hotels International's Operating Income of €372 Mil can be compared against companies in the Travel & Leisure industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Travel & Leisure company?
A good Operating Income depends on the Travel & Leisure industry context. However, Operating Income 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 Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Choice Hotels International and its competitors. Choice Hotels International's current Operating Income is €372 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Choice Hotels International stock overvalued right now?
Choice Hotels International (FRA:CZH) has a current Operating Income of €372 Mil. The stock's GF Value™ is €119.22, compared to a current price of €92.50 — trading 22.4% below its estimated fair value. The current Operating Income is €372 Mil. Choice Hotels International's overall GF Score™ is 85/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Choice Hotels International (FRA:CZH), the current Operating Income is €372 Mil 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 Choice Hotels International (FRA:CZH) Overvalued in 2026?

Based on GuruFocus' analysis, Choice Hotels International stock appears to be undervalued. The current stock price of €92.50 is trading 22.4% below its estimated GF Value™ of €119.22.

Key valuation signals for FRA:CZH:

  • Operating Income: €372 Mil
  • GF Value™: €119.22 vs. price of €92.50 (22.4% below fair value)
  • GF Score™: 85/100 with 4 warning signs

No single metric tells the full story. See the FRA:CZH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Choice Hotels International Business Description

Other Exchanges CHH:USACZH:Germany
Address 915 Meeting Street, Suite 600, North Bethesda, MD, USA, 20852
At year-end 2025, Choice Hotels operated 657,000 rooms across the economy, midscale, upscale, and extended-stay segments. Comfort Inn and Comfort Suites are the largest brands (27% of the company's total rooms), while Ascend and Cambria (10%) are lifestyle and select-service brands, and WoodSpring (5%) is the company's largest extended-stay brand. Choice closed on its Radisson acquisition in August 2022, which added about 70,000 rooms. Franchises account for 100% of total revenue, and the United States represented 78% of total rooms in 2025.
85GF Score

Get the complete analysis for FRA:CZH

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€92.50
Price
€119.22
GF Value