Cheesecake Factory (NAS:CAKE) Gross Profit

: $1,319 Mil (TTM As of Mar. 2023)

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Cheesecake Factory's gross profit for the three months ended in Mar. 2023 was $348 Mil. Cheesecake Factory's gross profit for the trailing twelve months (TTM) ended in Mar. 2023 was $1,319 Mil.

Gross Margin % is calculated as gross profit divided by its revenue. Cheesecake Factory's gross profit for the three months ended in Mar. 2023 was $348 Mil. Cheesecake Factory's Revenue for the three months ended in Mar. 2023 was $866 Mil. Therefore, Cheesecake Factory's Gross Margin % for the quarter that ended in Mar. 2023 was 40.22%.

Cheesecake Factory had a gross margin of 40.22% for the quarter that ended in Mar. 2023 => Durable competitive advantage

During the past 13 years, the highest Gross Margin % of Cheesecake Factory was 43.62%. The lowest was 37.63%. And the median was 41.95%.

Warning Sign:

Cheesecake Factory Inc gross margin has been in long-term decline. The average rate of decline per year is -1.7%.

Cheesecake Factory Gross Profit Historical Data

The historical data trend for Cheesecake Factory's Gross Profit 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.

* Premium members only.

Cheesecake Factory Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Gross Profit

965.32

1,021.24

746.31

1,201.78

1,280.28

Cheesecake Factory Quarterly Data
	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23
Gross Profit																309.45	323.94	293.19	353.70	348.36

Competitive Comparison

For the Restaurants subindustry, Cheesecake Factory's Gross Profit, along with its competitors' market caps and Gross Profit 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.

Annual Data Quarterly Data

Cheesecake Factory Gross Profit Distribution

For the Restaurants industry and Consumer Cyclical sector, Cheesecake Factory's Gross Profit distribution charts can be found below:

* The bar in red indicates where Cheesecake Factory's Gross Profit falls in comparison to its industry or sector. The grey bar indicates the Gross Profit's extreme value range as defined by GuruFocus.

Cheesecake Factory Gross Profit Calculation

Gross Profit is the different between the sale prices and the cost of buying or producing the goods.

Cheesecake Factory's Gross Profit for the fiscal year that ended in Dec. 2022 is calculated as

Gross Profit (A: Dec. 2022 )	=	Revenue	-	Cost of Goods Sold
	=	3303.156	-	2022.877
	=	1,280

Cheesecake Factory's Gross Profit for the quarter that ended in Mar. 2023 is calculated as

Gross Profit (Q: Mar. 2023 )	=	Revenue	-	Cost of Goods Sold
	=	866.114	-	517.752
	=	348

Gross Profit for the trailing twelve months (TTM) ended in Mar. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,319 Mil.

Gross Profit is the numerator in the calculation of Gross Margin.

Cheesecake Factory's Gross Margin % for the quarter that ended in Mar. 2023 is calculated as

Gross Margin % (Q: Mar. 2023 )	=	Gross Profit (Q: Mar. 2023 )	/	Revenue (Q: Mar. 2023 )
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	348	/	866.114
	=	40.22 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Cheesecake Factory (NAS:CAKE) Gross Profit Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Cheesecake Factory had a gross margin of 40.22% for the quarter that ended in Mar. 2023 => Durable competitive advantage

Cheesecake Factory Gross Profit Related Terms

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Cheesecake Factory (NAS:CAKE) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Cheesecake Factory Inc (NAS:CAKE) » Definitions » Gross Profit

Comparable Companies

Traded in Other Exchanges

CAKE:Mexico CF2:Germany

Address

26901 Malibu Hills Road, Calabasas Hills, CA, USA, 91301

Website

https://www.thecheesecakefactory.com

Cheesecake Factory owns and operates restaurants in the United States and Canada under brands that include The Cheesecake Factory, North Italia, and a collection within the Fox Restaurants Concepts subsidiary. The company's international presence, in the Middle East and Mexico, is through licensing agreements with third parties. The company also has a bakery division that produces cheesecakes and other baked products for sale in its restaurants, international licensees, and third-party bakery customers. The company has four operating business segments: The Cheesecake Factory restaurants, North Italia, other FRC, and Flower Child. Most of the company's revenue comes from The Cheesecake Factory restaurants segment.

Executives

Adam S. Gordon	director	26901 MALIBU HILLS ROAD, CALABASAS CA 91301
Khanh Collins	director	22825 QUEENSBRIDGE DRIVE, ASHBURN VA 20148
Paul D. Ginsberg	director	C/O ROARK CAPITAL, 1180 PEACHTREE STREET NE, SUITE 2500, ATLANTA GA 30309
Rc Cake Holdings Llc	10 percent owner	1180 PEACHTREE STREET NE, SUITE 2500, ATLANTA GA 30309
Janice L. Meyer	director	26901 MALIBU HILLS ROAD, CALABASAS CA 91301
Scarlett May	officer: EVP, General Counsel	26901 MALIBU HILLS ROAD, CALABASAS HILLS CA 91301
Keith Carango	officer: President (Subsidiary)	26901 MALIBU HILLS ROAD, CALABASAS HILLS CA 91301
Edie A Ames	director	C/O MORTONS RESTATURANT GROUP, INC., 325 LASALLE STREET, SUITE 500, CHICAGO IL 60610
Doug Benn	officer: Executive VP, CFO	C/O INNOVATIVE RESTAURANTS CONCEPT INC, 1640 POWERS FERRY RD BLDG 2 STE 300, MARIETTA GA 30067-9400
David M Gordon	officer: President	C/O THE CHEESECAKE FACTORY INCORPORATED, 26901 MALIBU HILLS DRIVE, CALABASAS HILLS CA 91301
Douglas L Schmick	director	720 SW WASHINGTON STREET, SUITE 550, PORTLAND OR 97205
Laurence B Mindel	director	IL FORNAIO AMERICA CORP, 770 TAMAPAIS DR STE 400, CORTE MADERA CA 94925
Herbert Simon	director	115 W WASHINGTON ST, INDIANAPOLIS IN 46204
Michael E Jannini	officer: President	C/O 26901 MALIBU HILLS DRIVE, CALABASAS HILLS CA 91301
David Bruce Pittaway	director	150 E 58TH ST, STE 3700, NEW YORK NY 10155