The Cheesecake FactoryFRA:CF2 +1.91%72 Gross Margin % is 42.79% as of Mar. 2026, which is 4% above its 10-year median of 41.26. GuruFocus rates FRA:CF2 with a GF Score™ of 72/100 and a GF Value™ of €42.18 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 359 Restaurants companies, The Cheesecake Factory ranks worse than 54.04% on this metric.
FRA:CF2's Gross Margin % is ranked worse than 54.04% of 359
companies
in the Restaurants industry
Industry Median: 45.71
vs FRA:CF2: 43.40
The Cheesecake Factory had a gross margin of 42.79% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for The Cheesecake Factory was 2.40% per year.
The Cheesecake Factory (FRA:CF2) Gross Margin % 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
The Cheesecake Factory had a gross margin of 42.79% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
The Cheesecake Factory Gross Margin % Related Terms
The Cheesecake Factory Gross Margin % Historical Data
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The historical data trend for The Cheesecake Factory's Gross 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.
FRA:CF2 vs SHAK, WING, ARCO: Gross Margin % Comparison
For the Restaurants subindustry, The Cheesecake Factory's Gross Margin %, along with its competitors' market caps and Gross 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.
The Cheesecake Factory Gross Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, The Cheesecake Factory's Gross Margin % distribution charts can be found below:
* The bar in red indicates where The Cheesecake Factory's Gross Margin % falls into.
* 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 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.
The Cheesecake Factory (FRA:CF2) has a Gross Margin % of 42.79% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on The Cheesecake Factory and its competitors. This is near median its historical median of 41.26. Over the past decade, The Cheesecake Factory's Gross Margin % has ranged from 37.63 to 43.46. According to the industry distribution chart, The Cheesecake Factory ranks #194 out of 359 companies in the Restaurants industry, placing it in the top 54%.
Is The Cheesecake Factory's Gross Margin % too high?
The Cheesecake Factory's current Gross Margin % of 42.79% is near median its 10-year median of 41.26. Over the past 10 years, this metric has ranged from a low of 37.63 to a high of 43.46. The Restaurants industry median Gross Margin % is 45.71. The Cheesecake Factory's value of 42.79% is 6.4% below this industry median. Based on the distribution chart, The Cheesecake Factory ranks #194 out of 359 companies in the Restaurants industry, which is below the industry midpoint. Overall, The Cheesecake Factory has a GF Score™ of 72/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does The Cheesecake Factory's Gross Margin % compare to SHAK and WING?
According to the Restaurants industry distribution chart, The Cheesecake Factory ranks #194 out of 359 companies for Gross Margin %. This places The Cheesecake Factory in the lower half of its industry. The industry median Gross Margin % is 45.71. The Cheesecake Factory's value of 42.79% is 6.4% below this benchmark. Historically, The Cheesecake Factory's own Gross Margin % has ranged from 37.63 to 43.46 over the past decade. While the company's 10-year median is 41.26 vs. the industry median of 45.71, The Cheesecake Factory 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 Gross Margin % for a Restaurants company?
The median Gross Margin % among Restaurants companies is 45.71, based on 359 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Cheesecake Factory's current Gross Margin % of 42.79% is 6.4% 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on The Cheesecake Factory and its competitors. For the Restaurants industry, the median Gross Margin % is 45.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Cheesecake Factory's current Gross Margin % is 42.79%, which is near median its own 10-year median of 41.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Cheesecake Factory stock overvalued right now?
Based on GuruFocus' analysis, The Cheesecake Factory (FRA:CF2) is currently considered Significantly Overvalued. The stock's GF Value™ is €42.18, compared to a current price of €68.16 — trading 61.6% above its estimated fair value. The current Gross Margin % is 42.79%, which is near median its 10-year median of 41.26 and 6.4% below the Restaurants industry median of 45.71. The Cheesecake Factory's overall GF Score™ is 72/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For The Cheesecake Factory (FRA:CF2), the current Gross Margin % is 42.79% 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.
Is The Cheesecake Factory (FRA:CF2) Overvalued in 2026?
Based on GuruFocus' analysis, The Cheesecake Factory stock appears to be overvalued.
The current stock price of €68.16 is trading 61.6% above its estimated GF Value™ of €42.18.
GuruFocus considers The Cheesecake Factory to be Significantly Overvalued.
Key valuation signals for FRA:CF2:
Gross Margin %: 42.79% (near median its 10-year median of 41.26)
GF Value™: €42.18 vs. price of €68.16 (61.6% above fair value)
Industry Position: 6.4% below the Restaurants median (#194 of 359)
No single metric tells the full story. See the FRA:CF2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Cheesecake Factory Inc is a restaurant company that owns and operates multiple casual dining brands across the United States and Canada under brands that include The Cheesecake Factory, North Italia, Flower Child, and additional brands within its Fox Restaurant Concepts portfolio. 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 Other. The majority of the company's revenue comes from the Cheesecake Factory restaurants segment.
72GF Score
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