McDonald's Holdings Co (Japan) (TSE:2702) 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.
McDonald's Holdings Co (Japan) Operating Margin % Related Terms
McDonald's Holdings Co (Japan) 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.
McDonald's Holdings Co (Japan) Operating Margin % Chart
TSE:2702 vs MCD, SBUX, CMG: Operating Margin % Comparison
For the Restaurants subindustry, McDonald's Holdings Co (Japan)'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.
McDonald's Holdings Co (Japan) Operating Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, McDonald's Holdings Co (Japan)'s Operating Margin % distribution charts can be found below:
* The bar in red indicates where McDonald's Holdings Co (Japan)'s Operating Margin % falls into.
McDonald's Holdings Co (Japan) 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.
McDonald's Holdings Co (Japan) (TSE:2702) has a Operating Margin % of 9.93% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on McDonald's Holdings Co (Japan) and its competitors. This is near median its historical median of 10.32. Over the past decade, McDonald's Holdings Co (Japan)'s Operating Margin % has ranged from 3.06 to 13.82. According to the industry distribution chart, McDonald's Holdings Co (Japan) ranks #39 out of 365 companies in the Restaurants industry, placing it in the top 10.7%.
Is McDonald's Holdings Co (Japan)'s Operating Margin % too high?
McDonald's Holdings Co (Japan)'s current Operating Margin % of 9.93% is near median its 10-year median of 10.32. Over the past 10 years, this metric has ranged from a low of 3.06 to a high of 13.82. The Restaurants industry median Operating Margin % is 4.26. McDonald's Holdings Co (Japan)'s value of 9.93% is 133.1% above this industry median. Based on the distribution chart, McDonald's Holdings Co (Japan) ranks #39 out of 365 companies in the Restaurants industry, which is in the top quartile — a strong position relative to peers. Overall, McDonald's Holdings Co (Japan) has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does McDonald's Holdings Co (Japan)'s Operating Margin % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, McDonald's Holdings Co (Japan) ranks #39 out of 365 companies for Operating Margin %. This places McDonald's Holdings Co (Japan) in the top 11% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 4.26. McDonald's Holdings Co (Japan)'s value of 9.93% is 133.1% above this benchmark. Historically, McDonald's Holdings Co (Japan)'s own Operating Margin % has ranged from 3.06 to 13.82 over the past decade. While the company's 10-year median is 10.32 vs. the industry median of 4.26, McDonald's Holdings Co (Japan) 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. McDonald's Holdings Co (Japan)'s current Operating Margin % of 9.93% is 133.1% 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 McDonald's Holdings Co (Japan) 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. McDonald's Holdings Co (Japan)'s current Operating Margin % is 9.93%, which is near median its own 10-year median of 10.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is McDonald's Holdings Co (Japan) stock overvalued right now?
Based on GuruFocus' analysis, McDonald's Holdings Co (Japan) (TSE:2702) is currently considered Modestly Overvalued. The stock's GF Value™ is 円6,525.68, compared to a current price of 円7,250.00 — trading 11.1% above its estimated fair value. The current Operating Margin % is 9.93%, which is near median its 10-year median of 10.32 and 133.1% above the Restaurants industry median of 4.26. McDonald's Holdings Co (Japan)'s overall GF Score™ is 74/100 with 2 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 McDonald's Holdings Co (Japan) (TSE:2702), the current Operating Margin % is 9.93% 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 McDonald's Holdings Co (Japan) (TSE:2702) Overvalued in 2026?
Based on GuruFocus' analysis, McDonald's Holdings Co (Japan) stock appears to be overvalued.
The current stock price of 円7,250.00 is trading 11.1% above its estimated GF Value™ of 円6,525.68.
GuruFocus considers McDonald's Holdings Co (Japan) to be Modestly Overvalued.
Key valuation signals for TSE:2702:
Operating Margin %: 9.93% (near median its 10-year median of 10.32)
GF Value™: 円6,525.68 vs. price of 円7,250.00 (11.1% above fair value)
Industry Position: 133.1% above the Restaurants median (#39 of 365)
No single metric tells the full story. See the TSE:2702 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
McDonald's Holdings Co (Japan) Business Description
McDonald's Holdings Co (Japan) Ltd has a license to operate McDonald's fast-food restaurants in Japan. It is engaged in the operation and management of hamburger restaurant chains under the McDonald's brand. The company pays royalties for licensed rights and, in Japan, provides sub-licenses for its know-how and trademarks to franchisees operating its franchise restaurants, from whom it earns royalty income.
74GF Score
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