Domino's Pizza EnterprisesASX:DMP -1.69%67 Operating Margin % is 13.41% as of Dec. 2025, which is 14% below its 10-year median of 15.65. GuruFocus rates ASX:DMP with a GF Score™ of 67/100 and a GF Value™ of A$29.91 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 365 Restaurants companies, Domino's Pizza Enterprises ranks better than 82.19% on this metric.
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.
Domino's Pizza Enterprises Operating Margin % Related Terms
Domino's Pizza Enterprises Operating 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.
ASX:DMP vs MCD, SBUX, CMG: Operating Margin % Comparison
For the Restaurants subindustry, Domino's Pizza Enterprises'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.
Domino's Pizza Enterprises Operating Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Domino's Pizza Enterprises's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Domino's Pizza Enterprises'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.
Domino's Pizza Enterprises's Operating Margin % for the fiscal year that ended in Jun. 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.
Domino's Pizza Enterprises (ASX:DMP) has a Operating Margin % of 13.41% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Domino's Pizza Enterprises and its competitors. This is 14% below median its historical median of 15.65. Over the past decade, Domino's Pizza Enterprises' Operating Margin % has ranged from 10.79 to 18.84. According to the industry distribution chart, Domino's Pizza Enterprises ranks #65 out of 365 companies in the Restaurants industry, placing it in the top 17.8%.
Is Domino's Pizza Enterprises' Operating Margin % too high?
Domino's Pizza Enterprises' current Operating Margin % of 13.41% is 14% below median its 10-year median of 15.65. Over the past 10 years, this metric has ranged from a low of 10.79 to a high of 18.84. The Restaurants industry median Operating Margin % is 4.26. Domino's Pizza Enterprises' value of 13.41% is 214.8% above this industry median. Based on the distribution chart, Domino's Pizza Enterprises ranks #65 out of 365 companies in the Restaurants industry, which is in the top quartile — a strong position relative to peers. Overall, Domino's Pizza Enterprises has a GF Score™ of 67/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Domino's Pizza Enterprises' Operating Margin % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Domino's Pizza Enterprises ranks #65 out of 365 companies for Operating Margin %. This places Domino's Pizza Enterprises in the top 18% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 4.26. Domino's Pizza Enterprises' value of 13.41% is 214.8% above this benchmark. Historically, Domino's Pizza Enterprises' own Operating Margin % has ranged from 10.79 to 18.84 over the past decade. While the company's 10-year median is 15.65 vs. the industry median of 4.26, Domino's Pizza Enterprises 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 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. Domino's Pizza Enterprises's current Operating Margin % of 13.41% is 214.8% 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 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 Domino's Pizza Enterprises 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. Domino's Pizza Enterprises's current Operating Margin % is 13.41%, which is 14% below median its own 10-year median of 15.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Domino's Pizza Enterprises stock overvalued right now?
Based on GuruFocus' analysis, Domino's Pizza Enterprises (ASX:DMP) is currently considered Possible Value Trap. The stock's GF Value™ is A$29.91, compared to a current price of A$15.72 — trading 47.4% below its estimated fair value. The current Operating Margin % is 13.41%, which is 14% below median its 10-year median of 15.65 and 214.8% above the Restaurants industry median of 4.26. Domino's Pizza Enterprises' overall GF Score™ is 67/100 with 7 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 Domino's Pizza Enterprises (ASX:DMP), the current Operating Margin % is 13.41% 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 Domino's Pizza Enterprises (ASX:DMP) Overvalued in 2026?
Based on GuruFocus' analysis, Domino's Pizza Enterprises stock appears to be undervalued.
The current stock price of A$15.72 is trading 47.4% below its estimated GF Value™ of A$29.91.
GuruFocus considers Domino's Pizza Enterprises to be Possible Value Trap.
Key valuation signals for ASX:DMP:
Operating Margin %: 13.41% (14% below median its 10-year median of 15.65)
GF Value™: A$29.91 vs. price of A$15.72 (47.4% below fair value)
Industry Position: 214.8% above the Restaurants median (#65 of 365)
No single metric tells the full story. See the ASX:DMP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Domino's Pizza Enterprises operates fast-food pizza outlets and franchise service. The company holds the exclusive master franchise rights for the Domino's brand and network in Australia, New Zealand, Japan, Singapore, Malaysia, Taiwan, Germany, France, Belgium, Luxembourg, Cambodia, and the Netherlands. The Domino's brand is owned by NYSE-listed Domino's Pizza Inc.
67GF Score
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