A&W Food Services of CanadaTSX:AW +0.08%16 Operating Margin % is 24.26% as of Mar. 2026, which is 67% above its 10-year median of 14.55. GuruFocus rates TSX:AW with a GF Score™ of 16/100. The stock has 6 warning signs investors should review. Among 362 Restaurants companies, A&W Food Services of Canada ranks better than 98.62% on this metric.
A&W Food Services of Canada (TSX:AW) 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.
A&W Food Services of Canada Operating Margin % Related Terms
A&W Food Services of Canada 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.
A&W Food Services of Canada Operating Margin % Chart
TSX:AW vs MCD, SBUX, YUM: Operating Margin % Comparison
For the Restaurants subindustry, A&W Food Services of Canada'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.
A&W Food Services of Canada Operating Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, A&W Food Services of Canada's Operating Margin % distribution charts can be found below:
* The bar in red indicates where A&W Food Services of Canada's Operating Margin % falls into.
A&W Food Services of Canada 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.
A&W Food Services of Canada'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.
A&W Food Services of Canada (TSX:AW) has a Operating Margin % of 24.26% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on A&W Food Services of Canada and its competitors. This is 67% above median its historical median of 14.55. Over the past decade, A&W Food Services of Canada's Operating Margin % has ranged from 11.16 to 31.90. According to the industry distribution chart, A&W Food Services of Canada ranks #5 out of 362 companies in the Restaurants industry, placing it in the top 1.4%.
Is A&W Food Services of Canada's Operating Margin % too high?
A&W Food Services of Canada's current Operating Margin % of 24.26% is 67% above median its 10-year median of 14.55. Over the past 10 years, this metric has ranged from a low of 11.16 to a high of 31.90. The Restaurants industry median Operating Margin % is 4.40. A&W Food Services of Canada's value of 24.26% is 451.4% above this industry median. Based on the distribution chart, A&W Food Services of Canada ranks #5 out of 362 companies in the Restaurants industry, which is in the top quartile — a strong position relative to peers. Overall, A&W Food Services of Canada has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does A&W Food Services of Canada's Operating Margin % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, A&W Food Services of Canada ranks #5 out of 362 companies for Operating Margin %. This places A&W Food Services of Canada in the top 1% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 4.40. A&W Food Services of Canada's value of 24.26% is 451.4% above this benchmark. Historically, A&W Food Services of Canada's own Operating Margin % has ranged from 11.16 to 31.90 over the past decade. While the company's 10-year median is 14.55 vs. the industry median of 4.40, A&W Food Services of Canada 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 4.40, 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. A&W Food Services of Canada's current Operating Margin % of 24.26% is 451.4% 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 A&W Food Services of Canada 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. A&W Food Services of Canada's current Operating Margin % is 24.26%, which is 67% above median its own 10-year median of 14.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is A&W Food Services of Canada stock overvalued right now?
A&W Food Services of Canada (TSX:AW) has a current Operating Margin % of 24.26%. The current Operating Margin % is 24.26%, which is 67% above median its 10-year median of 14.55 and 451.4% above the Restaurants industry median of 4.40. A&W Food Services of Canada's overall GF Score™ is 16/100 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 A&W Food Services of Canada (TSX:AW), the current Operating Margin % is 24.26% 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.
A&W Food Services of Canada Inc is in the business of developing and franchising quick service restaurants in Canada and owns the A&W trademarks used in the A&W quick service restaurant business in Canada. The Company also has one geographic segment as all assets and operations are in Canada.
16GF Score
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