The Cheesecake Factory (CAKE)

Operating profit margin

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	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	103,598	116,570	123,101	117,545
Revenue (ttm)	US$ in thousands	2,573,389	2,589,182	2,542,973	2,509,446	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	2,482,692	2,373,817	2,362,441	2,347,115
Operating profit margin		4.22%	3.29%	2.52%	1.77%	1.18%	1.73%	2.81%	3.29%	2.81%	1.57%	-0.96%	-7.44%	-17.52%	-14.24%	-10.97%	-4.67%	4.17%	4.91%	5.21%	5.01%

December 31, 2023 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $108,566K ÷ $2,573,389K
= 4.22%

The operating profit margin of The Cheesecake Factory has shown fluctuations over the past few quarters. The trend indicates a general improvement in profitability from negative figures in the earlier quarters of 2021 to positive figures by the end of 2023.

The operating profit margin increased from -17.52% in Q4 2021 to 4.22% in Q4 2023, representing a significant turnaround. This improvement suggests that the company has been able to effectively manage its operating expenses and generate more revenue relative to its costs.

The lowest operating profit margin was recorded in Q1 2021 at -17.52%, which may have been influenced by various factors such as the impact of the COVID-19 pandemic on the restaurant industry. However, the company has shown resilience and progress since then.

In summary, the recent positive trend in operating profit margin for The Cheesecake Factory is a positive indicator of the company's profitability and operational efficiency.