The Cheesecake Factory (CAKE)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 1,920,080 | 1,833,780 | 1,754,820 | 982,932 | 454,708 |
| Revenue | US$ in thousands | 3,581,700 | 3,439,500 | 3,303,160 | 2,927,540 | 1,982,420 |
| Gross profit margin | 53.61% | 53.32% | 53.13% | 33.58% | 22.94% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $1,920,080K ÷ $3,581,700K
= 53.61%
The gross profit margin of The Cheesecake Factory has shown a positive trend over the five-year period from December 31, 2020, to December 31, 2024. Starting at 22.94% in December 2020, the margin increased steadily to 33.58% by December 2021, indicating an improvement in cost efficiencies and pricing strategies.
Notably, there was a significant jump in the gross profit margin to 53.13% by December 2022, which was maintained and slightly increased to 53.32% by December 2023, and further to 53.61% by December 2024. This upward trajectory suggests that The Cheesecake Factory has been effectively managing its cost of goods sold while optimizing its revenue generation.
Overall, the consistent growth in the gross profit margin reflects the company's ability to increase profitability through efficient cost controls and pricing strategies, which could ultimately enhance its financial performance and shareholder value.
Peer comparison
Dec 31, 2024