The Cheesecake FactoryFRA:CF2 -0.26%72 Altman Z2-Score is 1.36 as of Jun. 27, 2026, which is 10% above its 10-year median of 1.24. GuruFocus rates FRA:CF2 with a GF Score™ of 72/100 and a GF Value™ of €41.54 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 361 Restaurants companies, The Cheesecake Factory ranks better than 51.8% on this metric.
Altman Z2-Score, also known as Z"-Score, is used to predict the likelihood that a non-manufacturing company (excluding property/financial company) will face bankruptcy within a two-year period.
The Cheesecake Factory has a Altman Z2-Score of 1.36, indicating it is in Grey Zones. This implies that The Cheesecake Factory is in some kind of financial stress. If it is below 1.1, the company may face bankrupcy risk.
The zones of discrimination were as such:
When Altman Z2-Score <= 1.1, it is in Distress Zones.
When Altman Z2-Score >= 2.6, it is in Safe Zones.
When Altman Z2-Score is between 1.1 and 2.6, it is in Grey Zones.
The historical rank and industry rank for The Cheesecake Factory's Altman Z2-Score or its related term are showing as below:
FRA:CF2'
s Altman Z2-Score Range Over the Past 10 Years
Min: 0.02 Med: 1.24 Max: 4.72
Current: 1.36
During the past 13 years, The Cheesecake Factory's highest Altman Z2-Score was 4.72. The lowest was 0.02. And the median was 1.24.
The Cheesecake Factory (FRA:CF2) Altman Z2-Score Explanation
The original Z-Score model was based on publicly traded manufacturing companies while the Z2-Score, also known as Z"-score can be used for any type of company excluding property/financial companies. Both Z-Score and Z2-Score describes the financial health of a company, and its likelihood of financial distress.
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
Altman Z2-Score does not apply to financial companies.
The Cheesecake Factory Altman Z2-Score Related Terms
The Cheesecake Factory Altman Z2-Score Historical Data
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The historical data trend for The Cheesecake Factory's Altman Z2-Score 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 SHAK, WING, ARCO: Altman Z2-Score Comparison
For the Restaurants subindustry, The Cheesecake Factory's Altman Z2-Score, along with its competitors' market caps and Altman Z2-Score 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 Altman Z2-Score vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, The Cheesecake Factory's Altman Z2-Score distribution charts can be found below:
* The bar in red indicates where The Cheesecake Factory's Altman Z2-Score falls into.
The Cheesecake Factory Altman Z2-Score Calculation
Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
Z2-Score, also known as Z"-Score is the Z-Score for non-manufacturing companies excluding property/financial companies.
* 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. GuruFocus does not calculate Altman Z2-Score when X4_2 value is 0.
The Cheesecake Factory (FRA:CF2) has a Altman Z2-Score of 1.36 as of Jun. 27, 2026. Z2-Score is the Z-Score for non-manufacturing companies excluding property/financial companies, which measures a company's bankruptcy risk. View historical data on The Cheesecake Factory and its competitors. This is 10% above median its historical median of 1.24. Over the past decade, The Cheesecake Factory's Altman Z2-Score has ranged from 0.02 to 4.72. According to the industry distribution chart, The Cheesecake Factory ranks #174 out of 361 companies in the Restaurants industry, placing it in the top 48.2%.
Is The Cheesecake Factory's Altman Z2-Score too high?
The Cheesecake Factory's current Altman Z2-Score of 1.36 is 10% above median its 10-year median of 1.24. Over the past 10 years, this metric has ranged from a low of 0.02 to a high of 4.72. The Restaurants industry median Altman Z2-Score is 1.28. The Cheesecake Factory's value of 1.36 is 6.3% above this industry median. Based on the distribution chart, The Cheesecake Factory ranks #174 out of 361 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 Altman Z2-Score compare to SHAK and WING?
According to the Restaurants industry distribution chart, The Cheesecake Factory ranks #174 out of 361 companies for Altman Z2-Score. This puts The Cheesecake Factory in the upper half of its industry. The industry median Altman Z2-Score is 1.28. The Cheesecake Factory's value of 1.36 is 6.3% above this benchmark. Historically, The Cheesecake Factory's own Altman Z2-Score has ranged from 0.02 to 4.72 over the past decade. While the company's 10-year median is 1.24 vs. the industry median of 1.28, 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 Altman Z2-Score for a Restaurants company?
The median Altman Z2-Score among Restaurants companies is 1.28, based on 361 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z2-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z2-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Cheesecake Factory's current Altman Z2-Score of 1.36 is 6.3% 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 Altman Z2-Score mean?
A high Altman Z2-Score can signal that a stock is expensive relative to its fundamentals. Z2-Score is the Z-Score for non-manufacturing companies excluding property/financial companies, which measures a company's bankruptcy risk. View historical data on The Cheesecake Factory and its competitors. For the Restaurants industry, the median Altman Z2-Score is 1.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Cheesecake Factory's current Altman Z2-Score is 1.36, which is 10% above median its own 10-year median of 1.24. 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 €41.54, compared to a current price of €67.98 — trading 63.6% above its estimated fair value. The current Altman Z2-Score is 1.36, which is 10% above median its 10-year median of 1.24 and 6.3% above the Restaurants industry median of 1.28. 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 Altman Z2-Score calculated?
Altman Z2-Score is calculated from a company's financial statements. For The Cheesecake Factory (FRA:CF2), the current Altman Z2-Score is 1.36 as of Jun. 27, 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 €67.98 is trading 63.6% above its estimated GF Value™ of €41.54.
GuruFocus considers The Cheesecake Factory to be Significantly Overvalued.
Key valuation signals for FRA:CF2:
Altman Z2-Score: 1.36 (10% above median its 10-year median of 1.24)
GF Value™: €41.54 vs. price of €67.98 (63.6% above fair value)
Industry Position: 6.3% above the Restaurants median (#174 of 361)
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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