The Cheesecake FactoryFRA:CF2 +1.78%73 Return-on-Tangible-Asset is 6.59% as of Mar. 2026, which is 20% above its 10-year median of 5.48. GuruFocus rates FRA:CF2 with a GF Score™ of 73/100 and a GF Value™ of €40.08 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 362 Restaurants companies, The Cheesecake Factory ranks better than 67.68% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. The Cheesecake Factory's annualizedNet Income for the quarter that ended in Mar. 2026 was €171 Mil. The Cheesecake Factory's average total tangible assets for the quarter that ended in Mar. 2026 was €2,602 Mil. Therefore, The Cheesecake Factory's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 6.59%.
The historical rank and industry rank for The Cheesecake Factory's Return-on-Tangible-Asset or its related term are showing as below:
FRA:CF2'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -10.35 Med: 5.48 Max: 12.2
Current: 5.57
During the past 13 years, The Cheesecake Factory's highest Return-on-Tangible-Asset was 12.20%. The lowest was -10.35%. And the median was 5.48%.
FRA:CF2's Return-on-Tangible-Asset is ranked better than 67.68% of 362
companies
in the Restaurants industry
Industry Median: 2.48
vs FRA:CF2: 5.57
The Cheesecake Factory (FRA:CF2) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
The Cheesecake Factory Return-on-Tangible-Asset Related Terms
The Cheesecake Factory Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for The Cheesecake Factory's Return-on-Tangible-Asset 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.
The Cheesecake Factory Return-on-Tangible-Asset Chart
FRA:CF2 vs WING, SHAK, ARCO: Return-on-Tangible-Asset Comparison
For the Restaurants subindustry, The Cheesecake Factory's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, The Cheesecake Factory's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where The Cheesecake Factory's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 6.59% mean?
The Cheesecake Factory (FRA:CF2) has a Return-on-Tangible-Asset of 6.59% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on The Cheesecake Factory and its competitors. This is 20% above median its historical median of 5.48. According to the industry distribution chart, The Cheesecake Factory ranks #117 out of 362 companies in the Restaurants industry, placing it in the top 32.3%.
Is The Cheesecake Factory's Return-on-Tangible-Asset too high?
The Cheesecake Factory's current Return-on-Tangible-Asset of 6.59% is 20% above median its 10-year median of 5.48. The Restaurants industry median Return-on-Tangible-Asset is 2.48. The Cheesecake Factory's value of 6.59% is 165.7% above this industry median. Based on the distribution chart, The Cheesecake Factory ranks #117 out of 362 companies in the Restaurants industry, which is above the industry midpoint. Overall, The Cheesecake Factory has a GF Score™ of 73/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does The Cheesecake Factory's Return-on-Tangible-Asset compare to WING and SHAK?
According to the Restaurants industry distribution chart, The Cheesecake Factory ranks #117 out of 362 companies for Return-on-Tangible-Asset. This puts The Cheesecake Factory in the upper half of its industry. The industry median Return-on-Tangible-Asset is 2.48. The Cheesecake Factory's value of 6.59% is 165.7% above this benchmark. While the company's 10-year median is 5.48 vs. the industry median of 2.48, 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 Return-on-Tangible-Asset for a Restaurants company?
The median Return-on-Tangible-Asset among Restaurants companies is 2.48, based on 362 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Cheesecake Factory's current Return-on-Tangible-Asset of 6.59% is 165.7% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on The Cheesecake Factory and its competitors. For the Restaurants industry, the median Return-on-Tangible-Asset is 2.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Cheesecake Factory's current Return-on-Tangible-Asset is 6.59%, which is 20% above median its own 10-year median of 5.48. 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 €40.08, compared to a current price of €67.42 — trading 68.2% above its estimated fair value. The current Return-on-Tangible-Asset is 6.59%, which is 20% above median its 10-year median of 5.48 and 165.7% above the Restaurants industry median of 2.48. The Cheesecake Factory's overall GF Score™ is 73/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For The Cheesecake Factory (FRA:CF2), the current Return-on-Tangible-Asset is 6.59% 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 €67.42 is trading 68.2% above its estimated GF Value™ of €40.08.
GuruFocus considers The Cheesecake Factory to be Significantly Overvalued.
Key valuation signals for FRA:CF2:
Return-on-Tangible-Asset: 6.59% (20% above median its 10-year median of 5.48)
GF Value™: €40.08 vs. price of €67.42 (68.2% above fair value)
Industry Position: 165.7% above the Restaurants median (#117 of 362)
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.
73GF Score
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