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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.
Guangzhou Xiao Noodles Catering Management Co Operating Margin % Related Terms
Guangzhou Xiao Noodles Catering Management Co 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.
Guangzhou Xiao Noodles Catering Management Co Operating Margin % Chart
Guangzhou Xiao Noodles Catering Management Co Annual Data
Trend
Dec22
Dec23
Dec24
Dec25
Operating Margin %
-6.21
9.31
8.89
12.28
Guangzhou Xiao Noodles Catering Management Co Semi-Annual Data
HKSE:02408 vs MCD, SBUX, YUM: Operating Margin % Comparison
For the Restaurants subindustry, Guangzhou Xiao Noodles Catering Management Co'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.
Guangzhou Xiao Noodles Catering Management Co Operating Margin % vs Restaurants Industry
Guangzhou Xiao Noodles Catering Management Co 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.
Guangzhou Xiao Noodles Catering Management Co (HKSE:02408) has a Operating Margin % of 12.69% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Guangzhou Xiao Noodles Catering Management Co and its competitors. This is 39% above median its historical median of 9.10. According to the industry distribution chart, Guangzhou Xiao Noodles Catering Management Co ranks #54 out of 360 companies in the Restaurants industry, placing it in the top 15%.
Is Guangzhou Xiao Noodles Catering Management Co's Operating Margin % too high?
Guangzhou Xiao Noodles Catering Management Co's current Operating Margin % of 12.69% is 39% above median its 10-year median of 9.10. The Restaurants industry median Operating Margin % is 4.32. Guangzhou Xiao Noodles Catering Management Co's value of 12.69% is 194.1% above this industry median. Based on the distribution chart, Guangzhou Xiao Noodles Catering Management Co ranks #54 out of 360 companies in the Restaurants industry, which is in the top quartile — a strong position relative to peers. Overall, Guangzhou Xiao Noodles Catering Management Co has a GF Score™ of 18/100, reflecting its overall financial health beyond just this single metric.
How does Guangzhou Xiao Noodles Catering Management Co's Operating Margin % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Guangzhou Xiao Noodles Catering Management Co ranks #54 out of 360 companies for Operating Margin %. This places Guangzhou Xiao Noodles Catering Management Co in the top 15% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 4.32. Guangzhou Xiao Noodles Catering Management Co's value of 12.69% is 194.1% above this benchmark. While the company's 10-year median is 9.10 vs. the industry median of 4.32, Guangzhou Xiao Noodles Catering Management Co 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 4.32, 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. Guangzhou Xiao Noodles Catering Management Co's current Operating Margin % of 12.69% is 194.1% 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 Guangzhou Xiao Noodles Catering Management Co and its competitors. For the Restaurants industry, the median Operating Margin % is 4.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Guangzhou Xiao Noodles Catering Management Co's current Operating Margin % is 12.69%, which is 39% above median its own 10-year median of 9.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Guangzhou Xiao Noodles Catering Management Co stock overvalued right now?
Guangzhou Xiao Noodles Catering Management Co (HKSE:02408) has a current Operating Margin % of 12.69%. The current Operating Margin % is 12.69%, which is 39% above median its 10-year median of 9.10 and 194.1% above the Restaurants industry median of 4.32. Guangzhou Xiao Noodles Catering Management Co's overall GF Score™ is 18/100 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 Guangzhou Xiao Noodles Catering Management Co (HKSE:02408), the current Operating Margin % is 12.69% 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.
Guangzhou Xiao Noodles Catering Management Co Business Description
Guangzhou Xiao Noodles Catering Management Co Ltd is a Chinese noodle restaurants operator in China and operates the Xiao Noodles brand domestically and overseas. It provides a diverse array of its Sichuan and Chongqing dishes throughout the day, encompassing breakfast, afternoon tea, and late-night snacks. The company operates self-operated restaurants and franchised restaurants in the Chinese Mainland, Hong Kong SAR and in Singapore. The self-operated restaurant operations generate revenue from dine-in service and delivery business; and franchised management generates revenue from royalty and franchising income and provision of service, and sales of food ingredients and restaurant supplies.
18GF Score
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