Green Tea GroupFRA:E71 -1.59%23 Operating Margin % is 12.79% as of Dec. 2025, which is 7% above its 10-year median of 11.96. GuruFocus rates FRA:E71 with a GF Score™ of 23/100. Among 365 Restaurants companies, Green Tea Group ranks better than 89.04% on this metric.
Green Tea Group (FRA:E71) 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.
Green Tea Group Operating Margin % Related Terms
Green Tea Group Operating Margin % Historical Data
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The historical data trend for Green Tea Group'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:E71 vs MCD, SBUX, CMG: Operating Margin % Comparison
For the Restaurants subindustry, Green Tea Group'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.
Green Tea Group Operating Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Green Tea Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Green Tea Group'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.
Green Tea Group'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.
Green Tea Group (FRA:E71) has a Operating Margin % of 12.79% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Green Tea Group and its competitors. This is near median its historical median of 11.96. Over the past decade, Green Tea Group's Operating Margin % has ranged from 3.43 to 13.38. According to the industry distribution chart, Green Tea Group ranks #40 out of 365 companies in the Restaurants industry, placing it in the top 11%.
Is Green Tea Group's Operating Margin % too high?
Green Tea Group's current Operating Margin % of 12.79% is near median its 10-year median of 11.96. Over the past 10 years, this metric has ranged from a low of 3.43 to a high of 13.38. The Restaurants industry median Operating Margin % is 4.26. Green Tea Group's value of 12.79% is 200.2% above this industry median. Based on the distribution chart, Green Tea Group ranks #40 out of 365 companies in the Restaurants industry, which is in the top quartile — a strong position relative to peers. Overall, Green Tea Group has a GF Score™ of 23/100, reflecting its overall financial health beyond just this single metric.
How does Green Tea Group's Operating Margin % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Green Tea Group ranks #40 out of 365 companies for Operating Margin %. This places Green Tea Group in the top 11% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 4.26. Green Tea Group's value of 12.79% is 200.2% above this benchmark. Historically, Green Tea Group's own Operating Margin % has ranged from 3.43 to 13.38 over the past decade. While the company's 10-year median is 11.96 vs. the industry median of 4.26, Green Tea Group 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. Green Tea Group's current Operating Margin % of 12.79% is 200.2% 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 Green Tea Group 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. Green Tea Group's current Operating Margin % is 12.79%, which is near median its own 10-year median of 11.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Green Tea Group stock overvalued right now?
Green Tea Group (FRA:E71) has a current Operating Margin % of 12.79%. The current Operating Margin % is 12.79%, which is near median its 10-year median of 11.96 and 200.2% above the Restaurants industry median of 4.26. Green Tea Group's overall GF Score™ is 23/100. 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 Green Tea Group (FRA:E71), the current Operating Margin % is 12.79% 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.
Green Tea Group Ltd is an operator of casual Chinese restaurants in Mainland China. The Group has built a digitized, standardized, and scalable business model supported by digitized restaurant and operations management, a flexible supply chain arrangement, and a comprehensive and stringent food and operational safety control system. The Group mainly generated revenue from restaurant operations and delivery services. The Group also generated revenue from other sources, including cell phone charging services, sales of products such as cooking oil, condiments, and gift boxes, and parking services. The Group has one operating segment, which is restaurant operations and delivery business.
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