What does EBITDA margin mean?

Operating cash profitability per sales dollar, before interest, taxes, and non-cash charges.

How do you interpret EBITDA margin?

Useful for comparing operating profitability across firms with different depreciation policies and leverage. High EBITDA margin alongside heavy capex can still mean weak free cash flow — pair it with FCF margin.

How does EBITDA margin compare across companies?

Widely used to compare capital-intensive businesses on a like-for-like basis. Less meaningful for banks and insurers.

Domino's Pizza DPZ EBITDA margin

Discontinued — last reported Q3 '15

EBITDA margin at other companies

McDonald'sMCD

47.9%+1.0pp

Yum! BrandsYUM

34.1%+0.3pp

Yum China HoldingsYUMC

14.8%+0.2pp

Restaurant Brands InternationalQSR

27.9%-1.6pp

Other financials

Income statement

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Revenue$1.2B+3.5%

Gross profit$464.5M+4.8%

Operating income$230.4M+9.6%

Net income$139.8M-6.6%

EPS (diluted)$4.13-4.6%

Balance sheet

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Cash & equivalents$232.9M-23.5%

Total debt$5.3B+1.1%

Total equity-$3.9B+0.2%

Total assets$1.8B-1.8%

Cash flow

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Operating cash flow$162.0M-9.6%

CapEx$15.0M+2.0%

Free cash flow$146.9M-10.6%

Valuation

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Market cap$10.39B-32.4%

Enterprise value$15.42B-24.5%

P/E17.6×-7.7×

P/S2.1×-1.2×

Profitability

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Gross margin40.1%+0.6pp

Operating margin19.6%+1.0pp

Net margin11.9%-1.0pp

FCF margin14.7%—

Returns & leverage

See full

Return on equity-15.1%—

Debt / equity-1.3×—

Current ratio1.6×+1.0×

Where this comes from

Calculated from Domino's Pizza’s reported figures.

ebitda/total revenue=32.5%

Based on trailing twelve months.

The official record: Domino's Pizza’s 10-Q, filed October 18, 2016, on SEC EDGAR. View the filing →

Questions, answered.

What does EBITDA margin mean?: Operating cash profitability per sales dollar, before interest, taxes, and non-cash charges.
How do you interpret EBITDA margin?: Useful for comparing operating profitability across firms with different depreciation policies and leverage. High EBITDA margin alongside heavy capex can still mean weak free cash flow — pair it with FCF margin.
How does EBITDA margin compare across companies?: Widely used to compare capital-intensive businesses on a like-for-like basis. Less meaningful for banks and insurers.