Cooks Coffee CoAQSE:COOK 16 Operating Margin % is 2.59% as of Sep. 2025. GuruFocus rates AQSE:COOK with a GF Score™ of 16/100 and a GF Value™ of £0.19 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 365 Restaurants companies, Cooks Coffee Co ranks better than 50.96% on this metric.
Cooks Coffee Co Ltd has recorded a loss in operating income at least once over the past 3 years.
Cooks Coffee Co (AQSE:COOK) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
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 Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) 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.
Cooks Coffee Co Operating Margin % Related Terms
Cooks Coffee Co Operating Margin % Historical Data
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The historical data trend for Cooks Coffee Co's Operating 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.
AQSE:COOK vs MCD, SBUX, CMG: Operating Margin % Comparison
For the Restaurants subindustry, Cooks Coffee Co's Operating Margin %, along with its competitors' market caps and Operating 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.
Cooks Coffee Co Operating Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Cooks Coffee Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Cooks Coffee Co's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Cooks Coffee Co's Operating Margin % for the fiscal year that ended in Mar. 2025 is calculated as
* 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.
Cooks Coffee Co (AQSE:COOK) has a Operating Margin % of 2.59% as of Sep. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Cooks Coffee Co and its competitors. According to the industry distribution chart, Cooks Coffee Co ranks #179 out of 365 companies in the Restaurants industry, placing it in the top 49%.
Is Cooks Coffee Co's Operating Margin % too high?
Cooks Coffee Co's current Operating Margin % is 2.59%. The Restaurants industry median Operating Margin % is 4.26. Cooks Coffee Co's value of 2.59% is 39.2% below this industry median. Based on the distribution chart, Cooks Coffee Co ranks #179 out of 365 companies in the Restaurants industry, which is above the industry midpoint. Overall, Cooks Coffee Co has a GF Score™ of 16/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Cooks Coffee Co's Operating Margin % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Cooks Coffee Co ranks #179 out of 365 companies for Operating Margin %. This puts Cooks Coffee Co in the upper half of its industry. The industry median Operating Margin % is 4.26. Cooks Coffee Co's value of 2.59% is 39.2% 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 Operating Margin % for a Restaurants company?
The median Operating Margin % among Restaurants companies is 4.26, based on 365 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cooks Coffee Co's current Operating Margin % of 2.59% is 39.2% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Cooks Coffee Co and its competitors. For the Restaurants industry, the median Operating Margin % is 4.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cooks Coffee Co's current Operating Margin % is 2.59%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cooks Coffee Co stock overvalued right now?
Based on GuruFocus' analysis, Cooks Coffee Co (AQSE:COOK) is currently considered Possible Value Trap. The stock's GF Value™ is £0.19, compared to a current price of £0.07 — trading 63.2% below its estimated fair value. The current Operating Margin % is 2.59% and 39.2% below the Restaurants industry median of 4.26. Cooks Coffee Co's overall GF Score™ is 16/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Cooks Coffee Co (AQSE:COOK), the current Operating Margin % is 2.59% as of Sep. 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 Cooks Coffee Co (AQSE:COOK) Overvalued in 2026?
Based on GuruFocus' analysis, Cooks Coffee Co stock appears to be undervalued.
The current stock price of £0.07 is trading 63.2% below its estimated GF Value™ of £0.19.
GuruFocus considers Cooks Coffee Co to be Possible Value Trap.
Key valuation signals for AQSE:COOK:
Operating Margin %: 2.59%
GF Value™: £0.19 vs. price of £0.07 (63.2% below fair value)
Industry Position: 39.2% below the Restaurants median (#179 of 365)
No single metric tells the full story. See the AQSE:COOK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cooks Coffee Co Ltd is engaged in the food and beverage industry, focusing on operating a network of cafes internationally via franchised operations. The company's geographical segments are Global franchising and retail, United Kingdom and Ireland franchising, and New Zealand which derives the Royalties and Product Sales to Franchisees in these geographical locations, and it generates a majority of its revenue from the United Kingdom and Ireland Franchising segment.
16GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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