The Cheesecake Factory (CAKE)

Gross profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Gross profit (ttm)	US$ in thousands	1,920,085	1,889,963	1,866,236	1,840,362	1,833,780	2,451,512	2,222,452	1,993,729	1,754,823	1,006,983	1,024,575	1,027,964	982,932	1,298,400	1,201,001	988,831	955,308	1,094,786	1,522,593	2,063,215
Revenue (ttm)	US$ in thousands	3,581,699	3,537,745	3,502,484	3,464,612	3,439,503	3,455,296	3,409,087	3,375,560	3,303,156	3,187,047	3,157,520	3,093,833	2,927,540	2,705,399	2,468,641	1,995,536	1,983,225	2,122,703	2,191,523	2,498,317
Gross profit margin		53.61%	53.42%	53.28%	53.12%	53.32%	70.95%	65.19%	59.06%	53.13%	31.60%	32.45%	33.23%	33.58%	47.99%	48.65%	49.55%	48.17%	51.58%	69.48%	82.58%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $1,920,085K ÷ $3,581,699K
= 53.61%

The gross profit margin of The Cheesecake Factory has exhibited fluctuations over the analyzed periods. In March 2020, the company achieved a relatively high gross profit margin of 82.58%, indicating efficient cost management and a strong revenue generation. However, by September 2021, the gross profit margin had declined to 47.99%, reflecting a decrease in profitability potentially due to higher costs or lower sales volume.

The gross profit margin continued to fluctuate, reaching its lowest point at 31.60% in September 2022. This significant drop could be attributed to various factors such as increased operating expenses or pricing pressures. Following this decline, there was a notable recovery in the margin, with an increase to 70.95% by September 2023, suggesting improved cost efficiencies or revenue growth strategies.

By December 2024, the gross profit margin stabilized at 53.61%, indicating a return to a more sustainable level of profitability for the company. The fluctuations in the gross profit margin of The Cheesecake Factory underscore the importance of closely monitoring cost structures and revenue streams to maintain and enhance overall financial performance.