Restaurant Brands International LPRSTRF -6.76%86 Operating Margin % is 25.88% as of Mar. 2026, which is 21% below its 10-year median of 32.77. GuruFocus rates RSTRF with a GF Score™ of 86/100 and a GF Value™ of $92.18 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 365 Restaurants companies, Restaurant Brands International LP ranks better than 96.99% on this metric.
Restaurant Brands International LP (OTCPK:RSTRF) 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.
Restaurant Brands International LP Operating Margin % Related Terms
Restaurant Brands International LP 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.
Restaurant Brands International LP Operating Margin % Chart
RSTRF vs MCD, SBUX, CMG: Operating Margin % Comparison
For the Restaurants subindustry, Restaurant Brands International LP'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.
Restaurant Brands International LP Operating Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Restaurant Brands International LP's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Restaurant Brands International LP's Operating Margin % falls into.
Restaurant Brands International LP 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.
Restaurant Brands International LP (RSTRF) has a Operating Margin % of 25.88% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Restaurant Brands International LP and its competitors. This is 21% below median its historical median of 32.77. Over the past decade, Restaurant Brands International LP's Operating Margin % has ranged from 26.43 to 41.41. According to the industry distribution chart, Restaurant Brands International LP ranks #11 out of 365 companies in the Restaurants industry, placing it in the top 3%.
Is Restaurant Brands International LP's Operating Margin % too high?
Restaurant Brands International LP's current Operating Margin % of 25.88% is 21% below median its 10-year median of 32.77. Over the past 10 years, this metric has ranged from a low of 26.43 to a high of 41.41. The Restaurants industry median Operating Margin % is 4.26. Restaurant Brands International LP's value of 25.88% is 507.5% above this industry median. Based on the distribution chart, Restaurant Brands International LP ranks #11 out of 365 companies in the Restaurants industry, which is in the top quartile — a strong position relative to peers. Overall, Restaurant Brands International LP has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Restaurant Brands International LP's Operating Margin % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Restaurant Brands International LP ranks #11 out of 365 companies for Operating Margin %. This places Restaurant Brands International LP in the top 3% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 4.26. Restaurant Brands International LP's value of 25.88% is 507.5% above this benchmark. Historically, Restaurant Brands International LP's own Operating Margin % has ranged from 26.43 to 41.41 over the past decade. While the company's 10-year median is 32.77 vs. the industry median of 4.26, Restaurant Brands International LP 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. Restaurant Brands International LP's current Operating Margin % of 25.88% is 507.5% 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 Restaurant Brands International LP 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. Restaurant Brands International LP's current Operating Margin % is 25.88%, which is 21% below median its own 10-year median of 32.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Restaurant Brands International LP stock overvalued right now?
Based on GuruFocus' analysis, Restaurant Brands International LP (RSTRF) is currently considered Modestly Undervalued. The stock's GF Value™ is $92.18, compared to a current price of $72.33 — trading 21.5% below its estimated fair value. The current Operating Margin % is 25.88%, which is 21% below median its 10-year median of 32.77 and 507.5% above the Restaurants industry median of 4.26. Restaurant Brands International LP's overall GF Score™ is 86/100 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 Restaurant Brands International LP (RSTRF), the current Operating Margin % is 25.88% as of Mar. 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 Restaurant Brands International LP (RSTRF) Overvalued in 2026?
Based on GuruFocus' analysis, Restaurant Brands International LP stock appears to be undervalued.
The current stock price of $72.33 is trading 21.5% below its estimated GF Value™ of $92.18.
GuruFocus considers Restaurant Brands International LP to be Modestly Undervalued.
Key valuation signals for RSTRF:
Operating Margin %: 25.88% (21% below median its 10-year median of 32.77)
GF Value™: $92.18 vs. price of $72.33 (21.5% below fair value)
Industry Position: 507.5% above the Restaurants median (#11 of 365)
No single metric tells the full story. See the RSTRF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Restaurant Brands International LP Business Description
Restaurant Brands International LP is a Canada-based firm. It owns, operates and franchises quick-service restaurants and possesses market recognition. The company has five segments Tim Hortons (TH), Burger King (BK), Popeyes Louisiana Kitchen (PLK), Firehouse Subs( FHS), Restaurant Holdings (RH) and International (INTL). It derives maximum profit from the Tim Hortons segment.
86GF Score
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