The Cheesecake FactoryFRA:CF2 +1.91%72 Interest Coverage is 31.35 as of Mar. 2026, which is 43% above its 10-year median of 21.95. 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 262 Restaurants companies, The Cheesecake Factory ranks better than 83.21% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. The Cheesecake Factory's
Operating Income
for the
three
months ended in Mar. 2026 was €54 Mil. The Cheesecake Factory's Interest Expense for the
three
months ended in Mar. 2026 was €-2 Mil.
The Cheesecake Factory's interest coverage for the quarter that ended in Mar. 2026 was 31.35.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for The Cheesecake Factory's Interest Coverage or its related term are showing as below:
FRA:CF2'
s Interest Coverage Range Over the Past 10 Years
Min: 12.5 Med: 21.95 Max: 56.59
Current: 25.6
FRA:CF2's Interest Coverage is ranked better than 83.21% of 262
companies
in the Restaurants industry
Industry Median: 6.45
vs FRA:CF2: 25.60
The Cheesecake Factory (FRA:CF2) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
The Cheesecake Factory Interest Coverage Related Terms
The Cheesecake Factory Interest Coverage Historical Data
* Premium members only.
The historical data trend for The Cheesecake Factory's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
FRA:CF2 vs SHAK, WING, ARCO: Interest Coverage Comparison
For the Restaurants subindustry, The Cheesecake Factory's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, The Cheesecake Factory's Interest Coverage distribution charts can be found below:
* The bar in red indicates where The Cheesecake Factory's Interest Coverage falls into.
The Cheesecake Factory Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
The Cheesecake Factory (FRA:CF2) has a Interest Coverage of 31.35 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on The Cheesecake Factory and its competitors. This is 43% above median its historical median of 21.95. Over the past decade, The Cheesecake Factory's Interest Coverage has ranged from 12.50 to 56.59. According to the industry distribution chart, The Cheesecake Factory ranks #44 out of 262 companies in the Restaurants industry, placing it in the top 16.8%.
Is The Cheesecake Factory's Interest Coverage too high?
The Cheesecake Factory's current Interest Coverage of 31.35 is 43% above median its 10-year median of 21.95. Over the past 10 years, this metric has ranged from a low of 12.50 to a high of 56.59. The Restaurants industry median Interest Coverage is 6.45. The Cheesecake Factory's value of 31.35 is 386% above this industry median. Based on the distribution chart, The Cheesecake Factory ranks #44 out of 262 companies in the Restaurants industry, which is in the top quartile — a strong position relative to peers. 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 Interest Coverage compare to SHAK and WING?
According to the Restaurants industry distribution chart, The Cheesecake Factory ranks #44 out of 262 companies for Interest Coverage. This places The Cheesecake Factory in the top 17% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 6.45. The Cheesecake Factory's value of 31.35 is 386% above this benchmark. Historically, The Cheesecake Factory's own Interest Coverage has ranged from 12.50 to 56.59 over the past decade. While the company's 10-year median is 21.95 vs. the industry median of 6.45, The Cheesecake Factory 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 Interest Coverage for a Restaurants company?
The median Interest Coverage among Restaurants companies is 6.45, based on 262 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Cheesecake Factory's current Interest Coverage of 31.35 is 386% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on The Cheesecake Factory and its competitors. For the Restaurants industry, the median Interest Coverage is 6.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Cheesecake Factory's current Interest Coverage is 31.35, which is 43% above median its own 10-year median of 21.95. 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 Interest Coverage is 31.35, which is 43% above median its 10-year median of 21.95 and 386% above the Restaurants industry median of 6.45. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For The Cheesecake Factory (FRA:CF2), the current Interest Coverage is 31.35 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:
Interest Coverage: 31.35 (43% above median its 10-year median of 21.95)
GF Value™: €42.18 vs. price of €68.16 (61.6% above fair value)
Industry Position: 386% above the Restaurants median (#44 of 262)
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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