The Cheesecake FactorySTU:CF2 +1.42%72 Operating Margin % is 6.39% as of Mar. 2026, which is 7% above its 10-year median of 5.95. GuruFocus rates STU:CF2 with a GF Score™ of 72/100 and a GF Value™ of €42.39 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 365 Restaurants companies, The Cheesecake Factory ranks better than 65.48% on this metric.
The Cheesecake Factory (STU:CF2) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
The Cheesecake Factory Operating Margin % Related Terms
The Cheesecake Factory Operating Margin % Historical Data
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The historical data trend for The Cheesecake Factory's Operating 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.
STU:CF2 vs SHAK, WING, ARCO: Operating Margin % Comparison
For the Restaurants subindustry, The Cheesecake Factory's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, The Cheesecake Factory's Operating Margin % distribution charts can be found below:
* The bar in red indicates where The Cheesecake Factory's Operating Margin % falls into.
The Cheesecake Factory Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
The Cheesecake Factory's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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 (STU:CF2) has a Operating Margin % of 6.39% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on The Cheesecake Factory and its competitors. This is near median its historical median of 5.95. According to the industry distribution chart, The Cheesecake Factory ranks #126 out of 365 companies in the Restaurants industry, placing it in the top 34.5%.
Is The Cheesecake Factory's Operating Margin % too high?
The Cheesecake Factory's current Operating Margin % of 6.39% is near median its 10-year median of 5.95. The Restaurants industry median Operating Margin % is 4.26. The Cheesecake Factory's value of 6.39% is 50% above this industry median. Based on the distribution chart, The Cheesecake Factory ranks #126 out of 365 companies in the Restaurants industry, which is above 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 Operating Margin % compare to SHAK and WING?
According to the Restaurants industry distribution chart, The Cheesecake Factory ranks #126 out of 365 companies for Operating Margin %. This puts The Cheesecake Factory in the upper half of its industry. The industry median Operating Margin % is 4.26. The Cheesecake Factory's value of 6.39% is 50% above this benchmark. While the company's 10-year median is 5.95 vs. the industry median of 4.26, 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 Operating Margin % for a Restaurants company?
The median Operating Margin % among Restaurants companies is 4.26, based on 365 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Cheesecake Factory's current Operating Margin % of 6.39% is 50% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on The Cheesecake Factory and its competitors. For the Restaurants industry, the median Operating Margin % is 4.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Cheesecake Factory's current Operating Margin % is 6.39%, which is near median its own 10-year median of 5.95. 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 (STU:CF2) is currently considered Significantly Overvalued. The stock's GF Value™ is €42.39, compared to a current price of €69.02 — trading 62.8% above its estimated fair value. The current Operating Margin % is 6.39%, which is near median its 10-year median of 5.95 and 50% above the Restaurants industry median of 4.26. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For The Cheesecake Factory (STU:CF2), the current Operating Margin % is 6.39% 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 (STU:CF2) Overvalued in 2026?
Based on GuruFocus' analysis, The Cheesecake Factory stock appears to be overvalued.
The current stock price of €69.02 is trading 62.8% above its estimated GF Value™ of €42.39.
GuruFocus considers The Cheesecake Factory to be Significantly Overvalued.
Key valuation signals for STU:CF2:
Operating Margin %: 6.39% (near median its 10-year median of 5.95)
GF Value™: €42.39 vs. price of €69.02 (62.8% above fair value)
Industry Position: 50% above the Restaurants median (#126 of 365)
No single metric tells the full story. See the STU: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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