Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
The Cheesecake Factory's 3-Year RORE % for the quarter that ended in Mar. 2026 was 18.71%.
The industry rank for The Cheesecake Factory's 3-Year RORE % or its related term are showing as below:
FRA:CF2's 3-Year RORE % is ranked better than 63.3% of 327
companies
in the Restaurants industry
Industry Median: 8.92
vs FRA:CF2: 18.71
The Cheesecake Factory (FRA:CF2) 3-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
The Cheesecake Factory 3-Year RORE % Related Terms
The Cheesecake Factory 3-Year RORE % Historical 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.
FRA:CF2 vs WING, SHAK, ARCO: 3-Year RORE % Comparison
For the Restaurants subindustry, The Cheesecake Factory's 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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 RORE % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, The Cheesecake Factory's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where The Cheesecake Factory's 3-Year RORE % 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 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.
The Cheesecake Factory (FRA:CF2) has a 3-Year RORE % of 18.71 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on The Cheesecake Factory and its competitors. According to the industry distribution chart, The Cheesecake Factory ranks #120 out of 327 companies in the Restaurants industry, placing it in the top 36.7%.
Is The Cheesecake Factory's 3-Year RORE % too high?
The Cheesecake Factory's current 3-Year RORE % is 18.71. The Restaurants industry median 3-Year RORE % is 8.92. The Cheesecake Factory's value of 18.71 is 109.8% above this industry median. Based on the distribution chart, The Cheesecake Factory ranks #120 out of 327 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 3-Year RORE % compare to WING and SHAK?
According to the Restaurants industry distribution chart, The Cheesecake Factory ranks #120 out of 327 companies for 3-Year RORE %. This puts The Cheesecake Factory in the upper half of its industry. The industry median 3-Year RORE % is 8.92. The Cheesecake Factory's value of 18.71 is 109.8% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for a Restaurants company?
The median 3-Year RORE % among Restaurants companies is 8.92, based on 327 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Cheesecake Factory's current 3-Year RORE % of 18.71 is 109.8% 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 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on The Cheesecake Factory and its competitors. For the Restaurants industry, the median 3-Year RORE % is 8.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Cheesecake Factory's current 3-Year RORE % is 18.71. 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 RORE % is 18.71 and 109.8% above the Restaurants industry median of 8.92. 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 RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For The Cheesecake Factory (FRA:CF2), the current 3-Year RORE % is 18.71 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 €68.36 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 RORE %: 18.71
GF Value™: €42.44 vs. price of €68.36 (61.1% above fair value)
Industry Position: 109.8% above the Restaurants median (#120 of 327)
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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