The Cheesecake Factory (CAKE)

Operating profit margin

		Jan 31, 2025	Dec 31, 2024	Oct 31, 2024	Sep 30, 2024	Jul 31, 2024	Jun 30, 2024	Apr 30, 2024	Mar 31, 2024	Jan 31, 2024	Dec 31, 2023	Oct 31, 2023	Sep 30, 2023	Jul 31, 2023	Jun 30, 2023	Apr 30, 2023	Mar 31, 2023	Jan 31, 2023	Dec 31, 2022	Oct 31, 2022	Sep 30, 2022
Operating income (ttm)	US$ in thousands	160,664	180,657	192,717	207,394	212,987	199,703	149,150	119,803	99,540	93,670	133,002	147,898	162,794	141,722	79,128	48,405	12,274	17,818	60,883	86,001
Revenue (ttm)	US$ in thousands	3,572,868	3,555,947	3,539,026	3,564,778	3,590,530	3,563,497	3,536,464	3,475,451	3,414,438	3,403,599	3,392,760	3,428,664	3,464,568	3,491,200	3,517,832	3,435,719	3,353,606	3,293,447	3,233,288	3,242,997
Operating profit margin		4.50%	5.08%	5.45%	5.82%	5.93%	5.60%	4.22%	3.45%	2.92%	2.75%	3.92%	4.31%	4.70%	4.06%	2.25%	1.41%	0.37%	0.54%	1.88%	2.65%

January 31, 2025 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $160,664K ÷ $3,572,868K
= 4.50%

The operating profit margin of The Cheesecake Factory has shown fluctuations over the reported periods. The company's operating profit margin started at a relatively low level of 2.65% in September 30, 2022, and experienced a decline to 1.88% in October 31, 2022. Subsequently, the margin dropped further to 0.54% by December 31, 2022, indicating a challenging period for profitability.

However, there was a noticeable improvement in the operating profit margin in the following months. By June 30, 2023, the margin had increased significantly to 4.06% and continued to rise, reaching a peak of 5.93% by July 31, 2024. This upward trend reflects the company's efforts in managing costs and optimizing operational efficiency.

Despite the positive trend in the mid-term, there were slight fluctuations in the operating profit margin between October 31, 2024, and January 31, 2025, ranging from 4.50% to 5.45%. Overall, The Cheesecake Factory has demonstrated some level of consistency in maintaining a relatively healthy operating profit margin above 4%, indicating effective cost management and operational performance during the analyzed periods.