The Cheesecake FactoryFRA:CF2 -0.78%72 3-Year ROIIC % is 29.26 as of Dec. 2025, which is 79% above its 10-year median of 16.34. GuruFocus rates FRA:CF2 with a GF Score™ of 72/100 and a GF Value™ of €42.44 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 333 Restaurants companies, The Cheesecake Factory ranks better than 75.98% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
The Cheesecake Factory's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 29.26%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for The Cheesecake Factory's 3-Year ROIIC % or its related term are showing as below:
FRA:CF2's 3-Year ROIIC % is ranked better than 75.98% of 333
companies
in the Restaurants industry
Industry Median: 3.55
vs FRA:CF2: 29.26
The Cheesecake Factory (FRA:CF2) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
The Cheesecake Factory 3-Year ROIIC % Related Terms
The Cheesecake Factory 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for The Cheesecake Factory's 3-Year ROIIC % 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.
FRA:CF2 vs WING, SHAK, ARCO: 3-Year ROIIC % Comparison
For the Restaurants subindustry, The Cheesecake Factory's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, The Cheesecake Factory's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where The Cheesecake Factory's 3-Year ROIIC % falls into.
The Cheesecake Factory's 3-Year ROIIC % for the quarter that ended in Dec. 2025 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 200.614348 (Dec. 2025) - 94.89 (Dec. 2022) )
/
( 2805.986 (Dec. 2025) - 2668.162 (Dec. 2022) )
=
105.724348
/
137.824
=
76.71%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
The Cheesecake Factory (FRA:CF2) has a 3-Year ROIIC % of 29.26 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on The Cheesecake Factory and its competitors. This is 79% above median its historical median of 16.34. According to the industry distribution chart, The Cheesecake Factory ranks #80 out of 333 companies in the Restaurants industry, placing it in the top 24%.
Is The Cheesecake Factory's 3-Year ROIIC % too high?
The Cheesecake Factory's current 3-Year ROIIC % of 29.26 is 79% above median its 10-year median of 16.34. The Restaurants industry median 3-Year ROIIC % is 3.55. The Cheesecake Factory's value of 29.26 is 724.2% above this industry median. Based on the distribution chart, The Cheesecake Factory ranks #80 out of 333 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 3-Year ROIIC % compare to WING and SHAK?
According to the Restaurants industry distribution chart, The Cheesecake Factory ranks #80 out of 333 companies for 3-Year ROIIC %. This places The Cheesecake Factory in the top 24% of its industry — outperforming the majority of peers. The industry median 3-Year ROIIC % is 3.55. The Cheesecake Factory's value of 29.26 is 724.2% above this benchmark. While the company's 10-year median is 16.34 vs. the industry median of 3.55, 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 3-Year ROIIC % for a Restaurants company?
The median 3-Year ROIIC % among Restaurants companies is 3.55, based on 333 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Cheesecake Factory's current 3-Year ROIIC % of 29.26 is 724.2% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on The Cheesecake Factory and its competitors. For the Restaurants industry, the median 3-Year ROIIC % is 3.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Cheesecake Factory's current 3-Year ROIIC % is 29.26, which is 79% above median its own 10-year median of 16.34. 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 €42.44, compared to a current price of €68.36 — trading 61.1% above its estimated fair value. The current 3-Year ROIIC % is 29.26, which is 79% above median its 10-year median of 16.34 and 724.2% above the Restaurants industry median of 3.55. 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 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For The Cheesecake Factory (FRA:CF2), the current 3-Year ROIIC % is 29.26 as of Dec. 2025. 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 €68.36 is trading 61.1% above its estimated GF Value™ of €42.44.
GuruFocus considers The Cheesecake Factory to be Significantly Overvalued.
Key valuation signals for FRA:CF2:
3-Year ROIIC %: 29.26 (79% above median its 10-year median of 16.34)
GF Value™: €42.44 vs. price of €68.36 (61.1% above fair value)
Industry Position: 724.2% above the Restaurants median (#80 of 333)
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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