The Cheesecake FactoryFRA:CF2 -0.26%72 Pretax Margin % is 5.45% as of Mar. 2026, which is 22% above its 10-year median of 4.48. GuruFocus rates FRA:CF2 with a GF Score™ of 72/100 and a GF Value™ of €41.54 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 366 Restaurants companies, The Cheesecake Factory ranks better than 60.93% on this metric.
The historical rank and industry rank for The Cheesecake Factory's Pretax Margin % or its related term are showing as below:
FRA:CF2'
s Pretax Margin % Range Over the Past 10 Years
Min: -17.95 Med: 4.48 Max: 8.43
Current: 4.78
FRA:CF2's Pretax Margin % is ranked better than 60.93% of 366
companies
in the Restaurants industry
Industry Median: 2.755
vs FRA:CF2: 4.78
The Cheesecake Factory (FRA:CF2) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
The Cheesecake Factory Pretax Margin % Related Terms
The Cheesecake Factory Pretax Margin % Historical Data
* Premium members only.
The historical data trend for The Cheesecake Factory's Pretax 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: Pretax Margin % Comparison
For the Restaurants subindustry, The Cheesecake Factory's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, The Cheesecake Factory's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where The Cheesecake Factory's Pretax 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.
The Cheesecake Factory (FRA:CF2) has a Pretax Margin % of 5.45% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on The Cheesecake Factory and its competitors. This is 22% above median its historical median of 4.48. According to the industry distribution chart, The Cheesecake Factory ranks #143 out of 366 companies in the Restaurants industry, placing it in the top 39.1%.
Is The Cheesecake Factory's Pretax Margin % too high?
The Cheesecake Factory's current Pretax Margin % of 5.45% is 22% above median its 10-year median of 4.48. The Restaurants industry median Pretax Margin % is 2.76. The Cheesecake Factory's value of 5.45% is 97.8% above this industry median. Based on the distribution chart, The Cheesecake Factory ranks #143 out of 366 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 Pretax Margin % compare to SHAK and WING?
According to the Restaurants industry distribution chart, The Cheesecake Factory ranks #143 out of 366 companies for Pretax Margin %. This puts The Cheesecake Factory in the upper half of its industry. The industry median Pretax Margin % is 2.76. The Cheesecake Factory's value of 5.45% is 97.8% above this benchmark. While the company's 10-year median is 4.48 vs. the industry median of 2.76, 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 Pretax Margin % for a Restaurants company?
The median Pretax Margin % among Restaurants companies is 2.76, based on 366 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Cheesecake Factory's current Pretax Margin % of 5.45% is 97.8% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on The Cheesecake Factory and its competitors. For the Restaurants industry, the median Pretax Margin % is 2.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Cheesecake Factory's current Pretax Margin % is 5.45%, which is 22% above median its own 10-year median of 4.48. 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 €41.54, compared to a current price of €67.98 — trading 63.6% above its estimated fair value. The current Pretax Margin % is 5.45%, which is 22% above median its 10-year median of 4.48 and 97.8% above the Restaurants industry median of 2.76. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For The Cheesecake Factory (FRA:CF2), the current Pretax Margin % is 5.45% 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 €67.98 is trading 63.6% above its estimated GF Value™ of €41.54.
GuruFocus considers The Cheesecake Factory to be Significantly Overvalued.
Key valuation signals for FRA:CF2:
Pretax Margin %: 5.45% (22% above median its 10-year median of 4.48)
GF Value™: €41.54 vs. price of €67.98 (63.6% above fair value)
Industry Position: 97.8% above the Restaurants median (#143 of 366)
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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