Is the business good?
How good a business is CAKE?
The Cheesecake Factory Incorporated earns 18% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
18%
Return on invested capital · cost of capital 9.0% · 9.2 points above what the capital costs: growth creates value
- Operating margin
- 5.3%
Operating margin · Restaurants median 8.6% · 12 months to Q2 2026
- Cash conversion
- 1.16×
Cash conversion · 0.83× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- +0.81%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | −18% |
| FY2021 | 2.8% |
| FY2022 | 1.2% |
| FY2023 | 3.2% |
| FY2024 | 5.0% |
| FY2025 | 5.0% |
Details›
- Operating margin12 months to Q2 2026
- 5.3%
- Net margin12 months to Q2 2026
- 4.6%
- Free cash flow margin
- 5.3%
- Revenue, trailing twelve months
- $3.88B
- Free cash flow, trailing twelve months
- $206M
- Net income, trailing twelve months
- $179M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 18%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.