The Cheesecake Factory (CAKE)

Operating 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
Operating income (ttm) US$ in thousands 178,317 139,824 125,154 113,933 108,566 85,304 64,069 44,540 38,935 55,037 88,619 101,795 82,318 42,528 -23,707 -148,535 -347,437 -302,239 -240,417 -116,608
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
Operating profit margin 4.98% 3.95% 3.57% 3.29% 3.16% 2.47% 1.88% 1.32% 1.18% 1.73% 2.81% 3.29% 2.81% 1.57% -0.96% -7.44% -17.52% -14.24% -10.97% -4.67%

December 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $178,317K ÷ $3,581,699K
= 4.98%

The operating profit margin of The Cheesecake Factory has shown varying trends over the past few years. Between March 31, 2020, and December 31, 2020, the operating profit margins were consistently negative, indicating that the company was not efficiently generating profits from its core operations during that period.

However, a significant improvement was observed in the following quarters. By the end of December 31, 2021, the operating profit margin turned positive at 2.81%, signaling a better bottom-line performance in comparison to the previous years.

The positive trend continued into the subsequent quarters of 2022 and 2023, with the operating profit margin gradually increasing from 2.81% to 3.29% by March 31, 2024. This improvement suggests that The Cheesecake Factory was able to enhance its profitability by managing its operating expenses effectively and increasing revenue streams during this period.

Overall, the upward trajectory of the operating profit margin from negative figures to nearly 5% by the end of December 31, 2024, is a positive indicator of the company's operational efficiency and financial health.