The Cheesecake FactoryFRA:CF2 +1.91%72 ROA % is 6.08% as of Mar. 2026, which is 21% above its 10-year median of 5.02. GuruFocus rates FRA:CF2 with a GF Score™ of 72/100 and a GF Value™ of €42.18 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 367 Restaurants companies, The Cheesecake Factory ranks better than 70.03% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. The Cheesecake Factory's annualizedNet Income for the quarter that ended in Mar. 2026 was €171 Mil.
The Cheesecake Factory's average Total Assets over the quarter that ended in Mar. 2026 was €2,819 Mil. Therefore, The Cheesecake Factory's annualized ROA % for the quarter that ended in Mar. 2026 was 6.08%.
The historical rank and industry rank for The Cheesecake Factory's ROA % or its related term are showing as below:
FRA:CF2'
s ROA % Range Over the Past 10 Years
Min: -9.07 Med: 5.02 Max: 11.99
Current: 5.14
During the past 13 years, The Cheesecake Factory's highest ROA % was 11.99%. The lowest was -9.07%. And the median was 5.02%.
FRA:CF2's ROA % is ranked better than 70.03% of 367
companies
in the Restaurants industry
Industry Median: 2.15
vs FRA:CF2: 5.14
The Cheesecake Factory (FRA:CF2) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % 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 ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
* 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.
For the Restaurants subindustry, The Cheesecake Factory's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, The Cheesecake Factory's ROA % distribution charts can be found below:
* The bar in red indicates where The Cheesecake Factory's ROA % 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 ROA %, the net income of the last fiscal year and the average total 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.
ROA % is displayed in the 30-year financial page.
The Cheesecake Factory (FRA:CF2) has a ROA % of 6.08% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on The Cheesecake Factory and its competitors. This is 21% above median its historical median of 5.02. According to the industry distribution chart, The Cheesecake Factory ranks #110 out of 367 companies in the Restaurants industry, placing it in the top 30%.
Is The Cheesecake Factory's ROA % too high?
The Cheesecake Factory's current ROA % of 6.08% is 21% above median its 10-year median of 5.02. The Restaurants industry median ROA % is 2.15. The Cheesecake Factory's value of 6.08% is 182.8% above this industry median. Based on the distribution chart, The Cheesecake Factory ranks #110 out of 367 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 ROA % compare to SHAK and WING?
According to the Restaurants industry distribution chart, The Cheesecake Factory ranks #110 out of 367 companies for ROA %. This puts The Cheesecake Factory in the upper half of its industry. The industry median ROA % is 2.15. The Cheesecake Factory's value of 6.08% is 182.8% above this benchmark. While the company's 10-year median is 5.02 vs. the industry median of 2.15, 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 ROA % for a Restaurants company?
The median ROA % among Restaurants companies is 2.15, based on 367 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Cheesecake Factory's current ROA % of 6.08% is 182.8% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on The Cheesecake Factory and its competitors. For the Restaurants industry, the median ROA % is 2.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Cheesecake Factory's current ROA % is 6.08%, which is 21% above median its own 10-year median of 5.02. 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 €42.18, compared to a current price of €68.16 — trading 61.6% above its estimated fair value. The current ROA % is 6.08%, which is 21% above median its 10-year median of 5.02 and 182.8% above the Restaurants industry median of 2.15. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For The Cheesecake Factory (FRA:CF2), the current ROA % is 6.08% 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 €68.16 is trading 61.6% above its estimated GF Value™ of €42.18.
GuruFocus considers The Cheesecake Factory to be Significantly Overvalued.
Key valuation signals for FRA:CF2:
ROA %: 6.08% (21% above median its 10-year median of 5.02)
GF Value™: €42.18 vs. price of €68.16 (61.6% above fair value)
Industry Position: 182.8% above the Restaurants median (#110 of 367)
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
Get the complete analysis for FRA:CF2
ROA % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:CF2 has been successfully added to your 
