The Cheesecake Factory (CAKE)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 100,014 | 32,892 | 71,620 | -356,036 | 140,334 |
| Revenue | US$ in thousands | 3,439,500 | 3,303,160 | 2,927,540 | 1,982,420 | 2,482,090 |
| Pretax margin | 2.91% | 1.00% | 2.45% | -17.96% | 5.65% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $100,014K ÷ $3,439,500K
= 2.91%
The pretax margin of The Cheesecake Factory has fluctuated over the past five years. In 2019, the company had a relatively high pretax margin of 5.65%, indicating that it was able to generate significant profits before taxes relative to its revenue. However, in 2020, the pretax margin plummeted to -17.96%, suggesting that the company incurred significant losses before taxes during that period.
Subsequently, in 2021, the pretax margin improved to 2.45%, indicating a recovery in profitability. This was followed by a slight decrease in 2022 to 1.00%, which may signify some challenges or inefficiencies affecting the company's ability to generate profits before taxes.
In 2023, The Cheesecake Factory's pretax margin increased to 2.91%, showing a positive trend in profitability. Despite the fluctuations observed over the years, the company's recent performance suggests a partial recovery and improved efficiency in managing its costs and expenses.
Peer comparison
Dec 31, 2023