The Cheesecake FactoryFRA:CF2 +1.91%72 ROE % is 44.53% as of Mar. 2026, which is 95% above its 10-year median of 22.85. 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 346 Restaurants companies, The Cheesecake Factory ranks better than 91.04% on this metric.
The historical rank and industry rank for The Cheesecake Factory's ROE % or its related term are showing as below:
FRA:CF2'
s ROE % Range Over the Past 10 Years
Min: -46.98 Med: 22.85 Max: 41.18
Current: 40.03
During the past 13 years, The Cheesecake Factory's highest ROE % was 41.18%. The lowest was -46.98%. And the median was 22.85%.
FRA:CF2's ROE % is ranked better than 91.04% of 346
companies
in the Restaurants industry
Industry Median: 6.38
vs FRA:CF2: 40.03
The Cheesecake Factory (FRA:CF2) 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:
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. 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.
* 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 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.
The Cheesecake Factory ROE % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, The Cheesecake Factory's ROE % distribution charts can be found below:
* The bar in red indicates where The Cheesecake Factory's ROE % 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 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. 2026) net income data.
ROE % is displayed in the 30-year financial page.
The Cheesecake Factory (FRA:CF2) has a ROE % of 44.53% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on The Cheesecake Factory and its competitors. This is 95% above median its historical median of 22.85. According to the industry distribution chart, The Cheesecake Factory ranks #31 out of 346 companies in the Restaurants industry, placing it in the top 9%.
Is The Cheesecake Factory's ROE % too high?
The Cheesecake Factory's current ROE % of 44.53% is 95% above median its 10-year median of 22.85. The Restaurants industry median ROE % is 6.38. The Cheesecake Factory's value of 44.53% is 598% above this industry median. Based on the distribution chart, The Cheesecake Factory ranks #31 out of 346 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 ROE % compare to SHAK and WING?
According to the Restaurants industry distribution chart, The Cheesecake Factory ranks #31 out of 346 companies for ROE %. This places The Cheesecake Factory in the top 9% of its industry — outperforming the majority of peers. The industry median ROE % is 6.38. The Cheesecake Factory's value of 44.53% is 598% above this benchmark. While the company's 10-year median is 22.85 vs. the industry median of 6.38, 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 ROE % for a Restaurants company?
The median ROE % among Restaurants companies is 6.38, based on 346 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Cheesecake Factory's current ROE % of 44.53% is 598% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on The Cheesecake Factory and its competitors. For the Restaurants industry, the median ROE % is 6.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Cheesecake Factory's current ROE % is 44.53%, which is 95% above median its own 10-year median of 22.85. 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 ROE % is 44.53%, which is 95% above median its 10-year median of 22.85 and 598% above the Restaurants industry median of 6.38. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For The Cheesecake Factory (FRA:CF2), the current ROE % is 44.53% 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:
ROE %: 44.53% (95% above median its 10-year median of 22.85)
GF Value™: €42.18 vs. price of €68.16 (61.6% above fair value)
Industry Position: 598% above the Restaurants median (#31 of 346)
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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