Haidilao International HoldingFRA:8HI -1.60%83 Operating Margin % is 12.78% as of Dec. 2025, which is 3% below its 10-year median of 13.18. GuruFocus rates FRA:8HI with a GF Score™ of 83/100 and a GF Value™ of €2.00 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 364 Restaurants companies, Haidilao International Holding ranks better than 84.62% on this metric.
Haidilao International Holding (FRA:8HI) 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.
Haidilao International Holding Operating Margin % Related Terms
Haidilao International Holding 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.
Haidilao International Holding Operating Margin % Chart
FRA:8HI vs MCD, SBUX, YUM: Operating Margin % Comparison
For the Restaurants subindustry, Haidilao International Holding'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.
Haidilao International Holding Operating Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Haidilao International Holding's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Haidilao International Holding's Operating Margin % falls into.
Haidilao International Holding Operating Margin % Calculation
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.
* 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.
Haidilao International Holding (FRA:8HI) has a Operating Margin % of 12.78% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Haidilao International Holding and its competitors. This is near median its historical median of 13.18. Over the past decade, Haidilao International Holding's Operating Margin % has ranged from 2.15 to 18.11. According to the industry distribution chart, Haidilao International Holding ranks #56 out of 364 companies in the Restaurants industry, placing it in the top 15.4%.
Is Haidilao International Holding's Operating Margin % too high?
Haidilao International Holding's current Operating Margin % of 12.78% is near median its 10-year median of 13.18. Over the past 10 years, this metric has ranged from a low of 2.15 to a high of 18.11. The Restaurants industry median Operating Margin % is 4.37. Haidilao International Holding's value of 12.78% is 192.8% above this industry median. Based on the distribution chart, Haidilao International Holding ranks #56 out of 364 companies in the Restaurants industry, which is in the top quartile — a strong position relative to peers. Overall, Haidilao International Holding has a GF Score™ of 83/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Haidilao International Holding's Operating Margin % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Haidilao International Holding ranks #56 out of 364 companies for Operating Margin %. This places Haidilao International Holding in the top 15% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 4.37. Haidilao International Holding's value of 12.78% is 192.8% above this benchmark. Historically, Haidilao International Holding's own Operating Margin % has ranged from 2.15 to 18.11 over the past decade. While the company's 10-year median is 13.18 vs. the industry median of 4.37, Haidilao International Holding 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 4.37, based on 364 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. Haidilao International Holding's current Operating Margin % of 12.78% is 192.8% 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 Haidilao International Holding and its competitors. For the Restaurants industry, the median Operating Margin % is 4.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Haidilao International Holding's current Operating Margin % is 12.78%, which is near median its own 10-year median of 13.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Haidilao International Holding stock overvalued right now?
Based on GuruFocus' analysis, Haidilao International Holding (FRA:8HI) is currently considered Significantly Undervalued. The stock's GF Value™ is €2.00, compared to a current price of €1.20 — trading 40% below its estimated fair value. The current Operating Margin % is 12.78%, which is near median its 10-year median of 13.18 and 192.8% above the Restaurants industry median of 4.37. Haidilao International Holding's overall GF Score™ is 83/100 with 1 warning sign 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 Haidilao International Holding (FRA:8HI), the current Operating Margin % is 12.78% 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 Haidilao International Holding (FRA:8HI) Overvalued in 2026?
Based on GuruFocus' analysis, Haidilao International Holding stock appears to be undervalued.
The current stock price of €1.20 is trading 40% below its estimated GF Value™ of €2.00.
GuruFocus considers Haidilao International Holding to be Significantly Undervalued.
Key valuation signals for FRA:8HI:
Operating Margin %: 12.78% (near median its 10-year median of 13.18)
GF Value™: €2.00 vs. price of €1.20 (40% below fair value)
Industry Position: 192.8% above the Restaurants median (#56 of 364)
No single metric tells the full story. See the FRA:8HI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Haidilao International Holding Business Description
Haidilao, founded in Sichuan in 1998, is a prominent Chinese hot pot restaurant operator. Following the spinoff of its international unit Super Hi, Haidilao now focuses solely on managing restaurants in Greater China.By the end of 2024, the chain operated over 1,300 stores in Greater China, generating more than CNY 40 billion in systemwide sales, making it one of the largest restaurant operators in China. The majority of its restaurants are company-owned, with only a small fraction franchised.
83GF Score
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