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Cheesecake Factory Operating Margin %

: 6.82% (As of Jun. 2021)
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Operating Margin % is calculated as Operating Income divided by its Revenue. Cheesecake Factory's Operating Income for the three months ended in Jun. 2021 was $52 Mil. Cheesecake Factory's Revenue for the three months ended in Jun. 2021 was $769 Mil. Therefore, Cheesecake Factory's Operating Margin % for the quarter that ended in Jun. 2021 was 6.82%.

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

NAS:CAKE' s Operating Margin % Range Over the Past 10 Years
Min: -6.52   Med: 7.52   Max: 8.84
Current: 0.64

-6.52
8.84

NAS:CAKE's Operating Margin % is ranked higher than
78% of the 77 Companies
in the Restaurants industry.

( Industry Median: 6.19 vs. NAS:CAKE: 0.64 )

Cheesecake Factory's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

Cheesecake Factory's Operating Income for the three months ended in Jun. 2021 was $52 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2021 was $16 Mil.

Warning Sign:

Cheesecake Factory Inc has recorded a loss in operating income at least once over the past 3 years.


Cheesecake Factory Operating Margin % Historical Data

The historical data trend for 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.

* Premium members only.

Cheesecake Factory Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Operating Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.84 7.22 5.87 5.16 -6.52

Cheesecake Factory Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Operating 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 -27.44 -4.44 -4.28 1.59 6.82

Competitive Comparison

For the Restaurants subindustry, 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.

   

Cheesecake Factory Operating Margin % Distribution

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

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



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.

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

Operating Margin %=Operating Income (A: Dec. 2020 ) / Revenue (A: Dec. 2020 )
=-129.277 / 1983.225
=-6.52 %

Cheesecake Factory's Operating Margin % for the quarter that ended in Jun. 2021 is calculated as

Operating Margin %=Operating Income (Q: Jun. 2021 ) / Revenue (Q: Jun. 2021 )
=52.475 / 768.956
=6.82 %

* 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.


Cheesecake Factory  (NAS:CAKE) 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 Nokia’s 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.


Cheesecake Factory Operating Margin % Related Terms

Thank you for viewing the detailed overview of Cheesecake Factory's Operating 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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