Domino's Pizza GroupLSE:DOM -3.94%77 Operating Margin % is 15.12% as of Dec. 2025, which is 18% below its 10-year median of 18.51. GuruFocus rates LSE:DOM with a GF Score™ of 77/100 and a GF Value™ of £3.41 (Significantly Undervalued). The stock has 6 warning signs investors should review. Among 365 Restaurants companies, Domino's Pizza Group ranks better than 90.41% on this metric.
Domino's Pizza Group (LSE:DOM) 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.
Domino's Pizza Group Operating Margin % Related Terms
Domino's Pizza Group Operating Margin % Historical Data
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The historical data trend for Domino's Pizza 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.
LSE:DOM vs MCD, SBUX, CMG: Operating Margin % Comparison
For the Restaurants subindustry, Domino's Pizza 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.
Domino's Pizza Group Operating Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Domino's Pizza Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Domino's Pizza Group's Operating Margin % falls into.
Domino's Pizza Group 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.
Domino's Pizza 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.
Domino's Pizza Group (LSE:DOM) has a Operating Margin % of 15.12% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Domino's Pizza Group and its competitors. This is 18% below median its historical median of 18.51. Over the past decade, Domino's Pizza Group's Operating Margin % has ranged from 14.93 to 23.04. According to the industry distribution chart, Domino's Pizza Group ranks #35 out of 365 companies in the Restaurants industry, placing it in the top 9.6%.
Is Domino's Pizza Group's Operating Margin % too high?
Domino's Pizza Group's current Operating Margin % of 15.12% is 18% below median its 10-year median of 18.51. Over the past 10 years, this metric has ranged from a low of 14.93 to a high of 23.04. The Restaurants industry median Operating Margin % is 4.26. Domino's Pizza Group's value of 15.12% is 254.9% above this industry median. Based on the distribution chart, Domino's Pizza Group ranks #35 out of 365 companies in the Restaurants industry, which is in the top quartile — a strong position relative to peers. Overall, Domino's Pizza Group has a GF Score™ of 77/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Domino's Pizza Group's Operating Margin % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Domino's Pizza Group ranks #35 out of 365 companies for Operating Margin %. This places Domino's Pizza Group in the top 10% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 4.26. Domino's Pizza Group's value of 15.12% is 254.9% above this benchmark. Historically, Domino's Pizza Group's own Operating Margin % has ranged from 14.93 to 23.04 over the past decade. While the company's 10-year median is 18.51 vs. the industry median of 4.26, Domino's Pizza 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. Domino's Pizza Group's current Operating Margin % of 15.12% is 254.9% 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 Domino's Pizza 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. Domino's Pizza Group's current Operating Margin % is 15.12%, which is 18% below median its own 10-year median of 18.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Domino's Pizza Group stock overvalued right now?
Based on GuruFocus' analysis, Domino's Pizza Group (LSE:DOM) is currently considered Significantly Undervalued. The stock's GF Value™ is £3.41, compared to a current price of £1.83 — trading 46.4% below its estimated fair value. The current Operating Margin % is 15.12%, which is 18% below median its 10-year median of 18.51 and 254.9% above the Restaurants industry median of 4.26. Domino's Pizza Group's overall GF Score™ is 77/100 with 6 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 Domino's Pizza Group (LSE:DOM), the current Operating Margin % is 15.12% 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 Domino's Pizza Group (LSE:DOM) Overvalued in 2026?
Based on GuruFocus' analysis, Domino's Pizza Group stock appears to be undervalued.
The current stock price of £1.83 is trading 46.4% below its estimated GF Value™ of £3.41.
GuruFocus considers Domino's Pizza Group to be Significantly Undervalued.
Key valuation signals for LSE:DOM:
Operating Margin %: 15.12% (18% below median its 10-year median of 18.51)
GF Value™: £3.41 vs. price of £1.83 (46.4% below fair value)
Industry Position: 254.9% above the Restaurants median (#35 of 365)
No single metric tells the full story. See the LSE:DOM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Domino's Pizza Group PLC is the UK's pizza brand and a player in the Irish market. The company owns, operates and franchises Domino's stores in the UK and the Republic of Ireland. The company also has an associate investment in Germany and Luxembourg. The company is organised into two geographical business units based on the operating models of the regions, the UK and Ireland and International. Revenue included in each segment includes all sales made to franchise stores (royalties, sales to franchisees and rental income) and by corporate stores located in that segment.
77GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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