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Cheesecake Factory Gross Margin %

: 40.44% (As of Sep. 2021)
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Gross Margin % is calculated as gross profit divided by its revenue. Cheesecake Factory's Gross Profit for the three months ended in Sep. 2021 was $305 Mil. Cheesecake Factory's Revenue for the three months ended in Sep. 2021 was $754 Mil. Therefore, Cheesecake Factory's Gross Margin % for the quarter that ended in Sep. 2021 was 40.44%.

Warning Sign:

Cheesecake Factory Inc gross margin has been in long term decline. The average rate of decline per year is -2.6%.


The historical rank and industry rank for Cheesecake Factory's Gross Margin % or its related term are showing as below:

NAS:CAKE' s Gross Margin % Range Over the Past 10 Years
Min: 37.63   Med: 42.57   Max: 43.62
Current: 40.71

37.63
43.62

During the past 13 years, the highest Gross Margin % of Cheesecake Factory was 43.62%. The lowest was 37.63%. And the median was 42.57%.

NAS:CAKE's Gross Margin % is ranked lower than
68% of the 77 Companies
in the Restaurants industry.

( Industry Median: 40.97 vs. NAS:CAKE: 40.71 )

Cheesecake Factory had a gross margin of 40.44% for the quarter that ended in Sep. 2021 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Cheesecake Factory was -2.60% per year.


Cheesecake Factory Gross Margin % Historical Data

The historical data trend for 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.

* Premium members only.

Cheesecake Factory Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 43.46 42.62 41.39 41.13 37.63

Cheesecake Factory Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 38.43 37.73 41.73 42.29 40.44

Competitive Comparison

For the Restaurants subindustry, 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.

   

Cheesecake Factory Gross Margin % Distribution

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

* The bar in red indicates where Cheesecake Factory's Gross Margin % falls into.



Cheesecake Factory Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Cheesecake Factory's Gross Margin for the fiscal year that ended in Dec. 2020 is calculated as

Gross Margin % (A: Dec. 2020 )=Gross Profit (A: Dec. 2020 ) / Revenue (A: Dec. 2020 )
=746.3 / 1983.225
=(Revenue - Cost of Goods Sold) / Revenue
=(1983.225 - 1236.918) / 1983.225
=37.63 %

Cheesecake Factory's Gross Margin for the quarter that ended in Sep. 2021 is calculated as


Gross Margin % (Q: Sep. 2021 )=Gross Profit (Q: Sep. 2021 ) / Revenue (Q: Sep. 2021 )
=305.1 / 754.474
=(Revenue - Cost of Goods Sold) / Revenue
=(754.474 - 449.375) / 754.474
=40.44 %

* 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.


Cheesecake Factory  (NAS:CAKE) 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

Cheesecake Factory had a gross margin of 40.44% for the quarter that ended in Sep. 2021 => 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.


Cheesecake Factory Gross Margin % Related Terms

Thank you for viewing the detailed overview of Cheesecake Factory's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Cheesecake Factory Business Description

Cheesecake Factory logo
Industry
Consumer Cyclical » Restaurants NAICS : 722511 SIC : 5812
Traded in Other Exchanges
Address
26901 Malibu Hills Road, Calabasas Hills, CA, USA, 91301
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 others. Most of the company's revenue comes from The Cheesecake Factory restaurants segment.
Executives
Meyer Janice L. director 26901 MALIBU HILLS ROAD CALABASAS CA 91301
Ginsberg Paul D. 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
Ames Edie A director C/O MORTONS RESTATURANT GROUP, INC. 325 LASALLE STREET, SUITE 500 CHICAGO IL 60610
Overton David director, officer: Chairman and C.E.O. PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: OVERTON DAVID a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Slomann Cheryl officer: Principal Accounting Officer 6450 VIA REAL CURPINTERIA CA 93013
Pittaway David Bruce director 150 E 58TH ST STE 3700 NEW YORK NY 10155
Clark Matthew Eliot officer: Exec VP, CFO 26901 MALIBU HILLS ROAD CALABASAS HILLS CA 91301
Gordon David M officer: President C/O THE CHEESECAKE FACTORY INCORPORATED 26901 MALIBU HILLS DRIVE CALABASAS HILLS CA 91301
Carango Keith officer: President (Subsidiary) 26901 MALIBU HILLS ROAD CALABASAS HILLS CA 91301
May Scarlett officer: EVP, General Counsel 26901 MALIBU HILLS ROAD CALABASAS HILLS CA 91301
Mindel Laurence B director IL FORNAIO AMERICA CORP 770 TAMAPAIS DR STE 400 CORTE MADERA CA 94925
Cappello Alexander L director C/O THE CHEESECAKE FACTORY INC 26901 MALIBU HILLS ROAD CALABASAS HILLS CA 91301
Zurzolo Debby R officer: Exec VP, Gen Counsel & Secy PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: ZURZOLO DEBBY R a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Byfuglin Max S officer: President (Subsidiary) PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: BYFUGLIN MAX S a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}

Cheesecake Factory Headlines

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