The Cheesecake Factory (CAKE)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	1,833,780	1,754,820	982,932	454,708	831,124
Revenue	US$ in thousands	3,439,500	3,303,160	2,927,540	1,982,420	2,482,090
Gross profit margin		53.32%	53.13%	33.58%	22.94%	33.48%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $1,833,780K ÷ $3,439,500K
= 53.32%

The gross profit margin of The Cheesecake Factory has shown a fluctuating trend over the past five years. In 2019, the gross profit margin stood at 33.48%, indicating that for every dollar of revenue generated, the company was able to retain approximately 33.48 cents after accounting for the cost of goods sold. Subsequently, there was a significant decrease in 2020 to 22.94%, reflecting a narrower margin likely due to increased costs or pricing pressures.

However, in 2021, the gross profit margin experienced a sharp increase to 33.58%, indicating an improvement in the company's ability to control costs and/or increase pricing strategies. This positive trend continued into 2022 and 2023, with the gross profit margin reaching 53.13% and 53.32%, respectively. This upward trajectory suggests that The Cheesecake Factory has effectively managed its cost of goods sold and has potentially implemented strategies to enhance profitability.

Overall, the recent performance of The Cheesecake Factory's gross profit margin highlights a positive trend towards higher margins and improved operational efficiency. Further analysis of the underlying factors driving these changes would provide deeper insights into the company's financial health and future prospects.