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Cheesecake Factory (Cheesecake Factory) ROE % : 40.82% (As of Mar. 2024)


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What is Cheesecake Factory ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Cheesecake Factory's annualized net income for the quarter that ended in Mar. 2024 was $133 Mil. Cheesecake Factory's average Total Stockholders Equity over the quarter that ended in Mar. 2024 was $325 Mil. Therefore, Cheesecake Factory's annualized ROE % for the quarter that ended in Mar. 2024 was 40.82%.

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

CAKE' s ROE % Range Over the Past 10 Years
Min: -46.98   Med: 19.11   Max: 33.32
Current: 33.32

During the past 13 years, Cheesecake Factory's highest ROE % was 33.32%. The lowest was -46.98%. And the median was 19.11%.

CAKE's ROE % is ranked better than
84.8% of 329 companies
in the Restaurants industry
Industry Median: 8.65 vs CAKE: 33.32

Cheesecake Factory ROE % Historical Data

The historical data trend for Cheesecake Factory's ROE % 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 ROE % Chart

Cheesecake Factory Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 22.28 -46.98 17.29 13.86 33.23

Cheesecake Factory Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
ROE % Get a 7-Day Free Trial 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 37.92 54.56 22.17 15.86 40.82

Competitive Comparison of Cheesecake Factory's ROE %

For the Restaurants subindustry, Cheesecake Factory's ROE %, along with its competitors' market caps and ROE % 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's ROE % Distribution in the Restaurants Industry

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

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



Cheesecake Factory ROE % Calculation

Cheesecake Factory's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=101.351/( (292.003+318.062)/ 2 )
=101.351/305.0325
=33.23 %

Cheesecake Factory's annualized ROE % for the quarter that ended in Mar. 2024 is calculated as

ROE %=Net Income (Q: Mar. 2024 )/( (Total Stockholders Equity (Q: Dec. 2023 )+Total Stockholders Equity (Q: Mar. 2024 ))/ count )
=132.764/( (318.062+332.438)/ 2 )
=132.764/325.25
=40.82 %

* 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.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Mar. 2024) net income data. ROE % is displayed in the 30-year financial page.


Cheesecake Factory  (NAS:CAKE) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Mar. 2024 )
=Net Income/Total Stockholders Equity
=132.764/325.25
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(132.764 / 3564.892)*(3564.892 / 2839.0115)*(2839.0115 / 325.25)
=Net Margin %*Asset Turnover*Equity Multiplier
=3.72 %*1.2557*8.7287
=ROA %*Equity Multiplier
=4.67 %*8.7287
=40.82 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Mar. 2024 )
=Net Income/Total Stockholders Equity
=132.764/325.25
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (132.764 / 150.128) * (150.128 / 193.508) * (193.508 / 3564.892) * (3564.892 / 2839.0115) * (2839.0115 / 325.25)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8843 * 0.7758 * 5.43 % * 1.2557 * 8.7287
=40.82 %

Note: The net income data used here is four times the quarterly (Mar. 2024) net income data. The Revenue data used here is four times the quarterly (Mar. 2024) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.


Cheesecake Factory ROE % Related Terms

Thank you for viewing the detailed overview of Cheesecake Factory's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Cheesecake Factory (Cheesecake Factory) Business Description

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 Flower Child. Majority of the company's revenue comes from The Cheesecake Factory restaurants segment.
Executives
Ashley W Hanscom officer: PRINCIPAL ACCOUNTING OFFICER 26901 MALIBU HILLS ROAD, CALABASAS HILLS CA 91301
Adam S. Gordon director 26901 MALIBU HILLS ROAD, CALABASAS CA 91301
Edie A Ames director C/O MORTONS RESTATURANT GROUP, INC., 325 LASALLE STREET, SUITE 500, CHICAGO IL 60610
David Bruce Pittaway director 150 E 58TH ST, STE 3700, NEW YORK NY 10155
Khanh Collins director 22825 QUEENSBRIDGE DRIVE, ASHBURN VA 20148
Matthew Eliot Clark officer: VP, Strategic Planning 26901 MALIBU HILLS ROAD, CALABASAS HILLS CA 91301
David M Gordon officer: President C/O THE CHEESECAKE FACTORY INCORPORATED, 26901 MALIBU HILLS DRIVE, CALABASAS HILLS CA 91301
Cheryl Slomann officer: Principal Accounting Officer 6450 VIA REAL, CURPINTERIA CA 93013
David Overton director, officer: Chairman and C.E.O.
Keith Carango officer: President (Subsidiary) 26901 MALIBU HILLS ROAD, CALABASAS HILLS CA 91301
Paul D. Ginsberg 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
Janice L. Meyer director 26901 MALIBU HILLS ROAD, CALABASAS CA 91301
Laurence B Mindel director IL FORNAIO AMERICA CORP, 770 TAMAPAIS DR STE 400, CORTE MADERA CA 94925
Alexander L Cappello director C/O THE CHEESECAKE FACTORY INC, 26901 MALIBU HILLS ROAD, CALABASAS HILLS CA 91301