The Cheesecake FactoryFRA:CF2 -2.05%72 Return-on-Tangible-Equity is 101.76% as of Mar. 2026, which is 151% above its 10-year median of 40.52. GuruFocus rates FRA:CF2 with a GF Score™ of 72/100 and a GF Value™ of €42.20 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 331 Restaurants companies, The Cheesecake Factory ranks better than 85.8% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. The Cheesecake Factory's annualized net income for the quarter that ended in Mar. 2026 was €171 Mil. The Cheesecake Factory's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €168 Mil. Therefore, The Cheesecake Factory's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 101.76%.
The historical rank and industry rank for The Cheesecake Factory's Return-on-Tangible-Equity or its related term are showing as below:
FRA:CF2'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -130.49 Med: 40.52 Max: 189.77
Current: 103
During the past 13 years, The Cheesecake Factory's highest Return-on-Tangible-Equity was 189.77%. The lowest was -130.49%. And the median was 40.52%.
FRA:CF2's Return-on-Tangible-Equity is ranked better than 85.8% of 331
companies
in the Restaurants industry
Industry Median: 8.76
vs FRA:CF2: 103.00
The Cheesecake Factory (FRA:CF2) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
The Cheesecake Factory Return-on-Tangible-Equity Related Terms
The Cheesecake Factory Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for The Cheesecake Factory's Return-on-Tangible-Equity 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-Equity Chart
FRA:CF2 vs WING, SHAK, ARCO: Return-on-Tangible-Equity Comparison
For the Restaurants subindustry, The Cheesecake Factory's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, The Cheesecake Factory's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where The Cheesecake Factory's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 101.76% mean?
The Cheesecake Factory (FRA:CF2) has a Return-on-Tangible-Equity of 101.76% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on The Cheesecake Factory and its competitors. This is 151% above median its historical median of 40.52. According to the industry distribution chart, The Cheesecake Factory ranks #47 out of 331 companies in the Restaurants industry, placing it in the top 14.2%.
Is The Cheesecake Factory's Return-on-Tangible-Equity too high?
The Cheesecake Factory's current Return-on-Tangible-Equity of 101.76% is 151% above median its 10-year median of 40.52. The Restaurants industry median Return-on-Tangible-Equity is 8.76. The Cheesecake Factory's value of 101.76% is 1061.6% above this industry median. Based on the distribution chart, The Cheesecake Factory ranks #47 out of 331 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 Return-on-Tangible-Equity compare to WING and SHAK?
According to the Restaurants industry distribution chart, The Cheesecake Factory ranks #47 out of 331 companies for Return-on-Tangible-Equity. This places The Cheesecake Factory in the top 14% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.76. The Cheesecake Factory's value of 101.76% is 1061.6% above this benchmark. While the company's 10-year median is 40.52 vs. the industry median of 8.76, 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 Return-on-Tangible-Equity for a Restaurants company?
The median Return-on-Tangible-Equity among Restaurants companies is 8.76, based on 331 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity 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-Equity of 101.76% is 1061.6% 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on The Cheesecake Factory and its competitors. For the Restaurants industry, the median Return-on-Tangible-Equity is 8.76 — 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-Equity is 101.76%, which is 151% above median its own 10-year median of 40.52. 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 €42.20, compared to a current price of €68.90 — trading 63.3% above its estimated fair value. The current Return-on-Tangible-Equity is 101.76%, which is 151% above median its 10-year median of 40.52 and 1061.6% above the Restaurants industry median of 8.76. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For The Cheesecake Factory (FRA:CF2), the current Return-on-Tangible-Equity is 101.76% 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 €68.90 is trading 63.3% above its estimated GF Value™ of €42.20.
GuruFocus considers The Cheesecake Factory to be Significantly Overvalued.
Key valuation signals for FRA:CF2:
Return-on-Tangible-Equity: 101.76% (151% above median its 10-year median of 40.52)
GF Value™: €42.20 vs. price of €68.90 (63.3% above fair value)
Industry Position: 1061.6% above the Restaurants median (#47 of 331)
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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