The Cheesecake Factory (CAKE)
Pretax margin
| Jan 31, 2025 | Dec 31, 2024 | Jan 31, 2024 | Dec 31, 2023 | Jan 31, 2023 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 171,047 | 171,047 | 100,014 | 100,014 | 32,892 |
| Revenue | US$ in thousands | 3,581,700 | 3,581,700 | 3,439,500 | 3,439,500 | 3,303,160 |
| Pretax margin | 4.78% | 4.78% | 2.91% | 2.91% | 1.00% |
January 31, 2025 calculation
Pretax margin = EBT ÷ Revenue
= $171,047K ÷ $3,581,700K
= 4.78%
The pretax margin of The Cheesecake Factory has shown a gradual improvement over the past few years. At the end of January 2023, the pretax margin was at 1.00%, indicating a relatively low profitability before accounting for taxes. However, by December 2024 and January 2025, the pretax margin had increased to 4.78%, demonstrating a significant improvement in the company's ability to generate profits relative to its total revenue. This suggests that The Cheesecake Factory has been able to effectively manage costs and increase operational efficiency, resulting in higher profitability levels. The consistent positive trend in the pretax margin reflects a positive trajectory for the company's financial performance and overall profitability.
Peer comparison
Jan 31, 2025