The Cheesecake Factory (CAKE)

Net 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
Net income (ttm)	US$ in thousands	156,783	128,310	116,261	106,492	101,351	85,372	65,029	48,010	43,123	48,531	83,609	91,668	72,373	37,946	-23,080	-113,334	-253,365	-172,339	-127,903	-35,854
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
Net profit margin		4.38%	3.63%	3.32%	3.07%	2.95%	2.47%	1.91%	1.42%	1.31%	1.52%	2.65%	2.96%	2.47%	1.40%	-0.93%	-5.68%	-12.78%	-8.12%	-5.84%	-1.44%

December 31, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $156,783K ÷ $3,581,699K
= 4.38%

The net profit margin of The Cheesecake Factory experienced fluctuations during the period from March 31, 2020, to December 31, 2024. It started with a negative margin of -1.44% in March 2020, deteriorated further to -12.78% in December 2020, and then gradually improved to reach positive territory by September 2021 at 1.40%. The margin continued to increase steadily, reaching its peak at 4.38% by December 31, 2024.

Overall, the trend in the net profit margin indicates a recovery from negative values to positive levels over the analyzed period. This improvement suggests that The Cheesecake Factory was able to enhance its profitability relative to its revenue, reflecting potentially more efficient cost management and operational performance during the time frame under review. The consistent growth in the net profit margin from September 2021 to December 2024 demonstrates the company's ability to generate higher profits from its business operations, which could be a positive signal for stakeholders and investors.