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Pizza Pizza RoyaltyFRA:3IA -0.64%52 Operating Margin % is 98.19% as of Jun. 2026, which is 0% below its 10-year median of 98.23. GuruFocus rates FRA:3IA with a GF Score™ of 52/100 and a GF Value™ of €20.62 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 362 Restaurants companies, Pizza Pizza Royalty ranks better than 96.13% 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.
Pizza Pizza Royalty Operating Margin % Related Terms
Pizza Pizza Royalty Operating Margin % Historical Data
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The historical data trend for Pizza Pizza Royalty'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.
FRA:3IA vs MCD, SBUX, YUM: Operating Margin % Comparison
For the Restaurants subindustry, Pizza Pizza Royalty'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.
Pizza Pizza Royalty Operating Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Pizza Pizza Royalty's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Pizza Pizza Royalty'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.
Pizza Pizza Royalty'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.
Pizza Pizza Royalty (FRA:3IA) has a Operating Margin % of 98.19% as of Jun. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Pizza Pizza Royalty and its competitors. This is near median its historical median of 98.23. Over the past decade, Pizza Pizza Royalty's Operating Margin % has ranged from 25.92 to 98.63. According to the industry distribution chart, Pizza Pizza Royalty ranks #14 out of 362 companies in the Restaurants industry, placing it in the top 3.9%.
Is Pizza Pizza Royalty's Operating Margin % too high?
Pizza Pizza Royalty's current Operating Margin % of 98.19% is near median its 10-year median of 98.23. Over the past 10 years, this metric has ranged from a low of 25.92 to a high of 98.63. The Restaurants industry median Operating Margin % is 4.34. Pizza Pizza Royalty's value of 98.19% is 2165.1% above this industry median. Based on the distribution chart, Pizza Pizza Royalty ranks #14 out of 362 companies in the Restaurants industry, which is in the top quartile — a strong position relative to peers. Overall, Pizza Pizza Royalty has a GF Score™ of 52/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Pizza Pizza Royalty's Operating Margin % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Pizza Pizza Royalty ranks #14 out of 362 companies for Operating Margin %. This places Pizza Pizza Royalty in the top 4% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 4.34. Pizza Pizza Royalty's value of 98.19% is 2165.1% above this benchmark. Historically, Pizza Pizza Royalty's own Operating Margin % has ranged from 25.92 to 98.63 over the past decade. While the company's 10-year median is 98.23 vs. the industry median of 4.34, Pizza Pizza Royalty 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 4.34, based on 362 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. Pizza Pizza Royalty's current Operating Margin % of 98.19% is 2165.1% 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 Pizza Pizza Royalty and its competitors. For the Restaurants industry, the median Operating Margin % is 4.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pizza Pizza Royalty's current Operating Margin % is 98.19%, which is near median its own 10-year median of 98.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pizza Pizza Royalty stock overvalued right now?
Based on GuruFocus' analysis, Pizza Pizza Royalty (FRA:3IA) is currently considered Significantly Undervalued. The stock's GF Value™ is €20.62, compared to a current price of €7.80 — trading 62.2% below its estimated fair value. The current Operating Margin % is 98.19%, which is near median its 10-year median of 98.23 and 2165.1% above the Restaurants industry median of 4.34. Pizza Pizza Royalty's overall GF Score™ is 52/100 with 2 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 Pizza Pizza Royalty (FRA:3IA), the current Operating Margin % is 98.19% as of Jun. 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 Pizza Pizza Royalty (FRA:3IA) Overvalued in 2026?
Based on GuruFocus' analysis, Pizza Pizza Royalty stock appears to be undervalued.
The current stock price of €7.80 is trading 62.2% below its estimated GF Value™ of €20.62.
GuruFocus considers Pizza Pizza Royalty to be Significantly Undervalued.
Key valuation signals for FRA:3IA:
Operating Margin %: 98.19% (near median its 10-year median of 98.23)
GF Value™: €20.62 vs. price of €7.80 (62.2% below fair value)
Industry Position: 2165.1% above the Restaurants median (#14 of 362)
No single metric tells the full story. See the FRA:3IA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pizza Pizza Royalty Corp through its subsidiary, Pizza Pizza Royalty Limited Partnership, owns and franchises quick-service restaurants under the Pizza Pizza and Pizza 73 brands. It receives the benefit of Pizza Pizza Royalty and Pizza 73 Royalty payable by PPL under the Pizza Pizza Licence and Royalty Agreement and the Pizza 73 Licence and Royalty Agreement, respectively, as well as royalty payments under the international agreement, indirectly through its interests in the partnership.
52GF Score
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