Mercuries F&B CoTPE:7705 +2.33%41 Operating Margin % is 0.56% as of Dec. 2025, which is 88% below its 10-year median of 4.85. GuruFocus rates TPE:7705 with a GF Score™ of 41/100. The stock has 7 warning signs investors should review. Among 362 Restaurants companies, Mercuries F&B Co ranks worse than 65.75% on this metric.
Mercuries F&B Co (TPE:7705) 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.
Mercuries F&B Co Operating Margin % Related Terms
Mercuries F&B Co Operating Margin % Historical Data
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The historical data trend for Mercuries F&B Co'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.
TPE:7705 vs MCD, SBUX, YUM: Operating Margin % Comparison
For the Restaurants subindustry, Mercuries F&B 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.
Mercuries F&B Co Operating Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Mercuries F&B Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Mercuries F&B Co'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.
Mercuries F&B Co'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.
Mercuries F&B Co (TPE:7705) has a Operating Margin % of 0.56% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Mercuries F&B Co and its competitors. This is 88% below median its historical median of 4.85. Over the past decade, Mercuries F&B Co's Operating Margin % has ranged from 2.03 to 8.15. According to the industry distribution chart, Mercuries F&B Co ranks #238 out of 362 companies in the Restaurants industry, placing it in the top 65.7%.
Is Mercuries F&B Co's Operating Margin % too high?
Mercuries F&B Co's current Operating Margin % of 0.56% is 88% below median its 10-year median of 4.85. Over the past 10 years, this metric has ranged from a low of 2.03 to a high of 8.15. The Restaurants industry median Operating Margin % is 4.40. Mercuries F&B Co's value of 0.56% is 87.3% below this industry median. Based on the distribution chart, Mercuries F&B Co ranks #238 out of 362 companies in the Restaurants industry, which is below the industry midpoint. Overall, Mercuries F&B Co has a GF Score™ of 41/100, reflecting its overall financial health beyond just this single metric.
How does Mercuries F&B Co's Operating Margin % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Mercuries F&B Co ranks #238 out of 362 companies for Operating Margin %. This places Mercuries F&B Co in the lower half of its industry. The industry median Operating Margin % is 4.40. Mercuries F&B Co's value of 0.56% is 87.3% below this benchmark. Historically, Mercuries F&B Co's own Operating Margin % has ranged from 2.03 to 8.15 over the past decade. While the company's 10-year median is 4.85 vs. the industry median of 4.40, Mercuries F&B Co has consistently been below 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 4.40, based on 362 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. Mercuries F&B Co's current Operating Margin % of 0.56% is 87.3% below 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 Mercuries F&B Co and its competitors. For the Restaurants industry, the median Operating Margin % is 4.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mercuries F&B Co's current Operating Margin % is 0.56%, which is 88% below median its own 10-year median of 4.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mercuries F&B Co stock overvalued right now?
Mercuries F&B Co (TPE:7705) has a current Operating Margin % of 0.56%. The current Operating Margin % is 0.56%, which is 88% below median its 10-year median of 4.85 and 87.3% below the Restaurants industry median of 4.40. Mercuries F&B Co's overall GF Score™ is 41/100 with 7 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 Mercuries F&B Co (TPE:7705), the current Operating Margin % is 0.56% 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.
Mercuries F&B Co Ltd is a company that operates in catering industry which is known for the beef noodle chain store in the country that owns eight catering brands, including Sanshang Qiaofu, Napoli, Fu Shengting, Sanshang Xianwudon, Shinagawalan, BANCO, Napoli Fried Chicken, Qiaofu PLUS.
41GF Score
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