Biglari HoldingsBH +0.79%56 Operating Margin % is 2.94% as of Mar. 2026, which is 51% below its 10-year median of 5.95. GuruFocus rates BH with a GF Score™ of 56/100 and a GF Value™ of $241.25 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 360 Restaurants companies, Biglari Holdings ranks better than 55.28% 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.
Biglari Holdings Operating Margin % Related Terms
Biglari Holdings Operating Margin % Historical Data
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The historical data trend for Biglari Holdings'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.
BH vs BJRI, PZZA, CBRL: Operating Margin % Comparison
For the Restaurants subindustry, Biglari Holdings'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.
Biglari Holdings Operating Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Biglari Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Biglari Holdings'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.
Biglari Holdings's Operating Margin % for the fiscal year that ended in Dec. 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.
Biglari Holdings (BH) has a Operating Margin % of 2.94% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Biglari Holdings and its competitors. This is 51% below median its historical median of 5.95. Over the past decade, Biglari Holdings' Operating Margin % has ranged from 0.24 to 12.42. According to the industry distribution chart, Biglari Holdings ranks #161 out of 360 companies in the Restaurants industry, placing it in the top 44.7%.
Is Biglari Holdings' Operating Margin % too high?
Biglari Holdings' current Operating Margin % of 2.94% is 51% below median its 10-year median of 5.95. Over the past 10 years, this metric has ranged from a low of 0.24 to a high of 12.42. The Restaurants industry median Operating Margin % is 4.40. Biglari Holdings' value of 2.94% is 33.2% below this industry median. Based on the distribution chart, Biglari Holdings ranks #161 out of 360 companies in the Restaurants industry, which is above the industry midpoint. Overall, Biglari Holdings has a GF Score™ of 56/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Biglari Holdings' Operating Margin % compare to BJRI and PZZA?
According to the Restaurants industry distribution chart, Biglari Holdings ranks #161 out of 360 companies for Operating Margin %. This puts Biglari Holdings in the upper half of its industry. The industry median Operating Margin % is 4.40. Biglari Holdings' value of 2.94% is 33.2% below this benchmark. Historically, Biglari Holdings' own Operating Margin % has ranged from 0.24 to 12.42 over the past decade. While the company's 10-year median is 5.95 vs. the industry median of 4.40, Biglari Holdings has consistently been below 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 4.40, based on 360 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. Biglari Holdings's current Operating Margin % of 2.94% is 33.2% 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 Biglari Holdings and its competitors. For the Restaurants industry, the median Operating Margin % is 4.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Biglari Holdings's current Operating Margin % is 2.94%, which is 51% below median its own 10-year median of 5.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Biglari Holdings stock overvalued right now?
Based on GuruFocus' analysis, Biglari Holdings (BH) is currently considered Significantly Overvalued. The stock's GF Value™ is $241.25, compared to a current price of $424.23 — trading 75.8% above its estimated fair value. The current Operating Margin % is 2.94%, which is 51% below median its 10-year median of 5.95 and 33.2% below the Restaurants industry median of 4.40. Biglari Holdings' overall GF Score™ is 56/100 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 Biglari Holdings (BH), the current Operating Margin % is 2.94% 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 Biglari Holdings (BH) Overvalued in 2026?
Based on GuruFocus' analysis, Biglari Holdings stock appears to be overvalued.
The current stock price of $424.23 is trading 75.8% above its estimated GF Value™ of $241.25.
GuruFocus considers Biglari Holdings to be Significantly Overvalued.
Key valuation signals for BH:
Operating Margin %: 2.94% (51% below median its 10-year median of 5.95)
GF Value™: $241.25 vs. price of $424.23 (75.8% above fair value)
Industry Position: 33.2% below the Restaurants median (#161 of 360)
No single metric tells the full story. See the BH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Biglari Holdings Inc is a holding company that owns subsidiaries in a range of businesses. The company's reportable segments include Restaurant Operations, Insurance Operations, and Oil and Gas Operations. Its restaurant operations include Steak n Shake and Western Sizzlin. Its insurance operations include First Guard, Southern Pioneer, and Biglari Reinsurance. Oil and gas operations include Southern Oil and Abraxas Petroleum. The company also reports segment information for Maxim. The majority of revenue is derived from the Restaurant Operations Segment.
56GF Score
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