The Cheesecake Factory (CAKE)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 171,047 | 100,014 | 32,892 | 71,620 | -356,036 |
| Revenue | US$ in thousands | 3,581,700 | 3,439,500 | 3,303,160 | 2,927,540 | 1,982,420 |
| Pretax margin | 4.78% | 2.91% | 1.00% | 2.45% | -17.96% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $171,047K ÷ $3,581,700K
= 4.78%
The pretax margin of The Cheesecake Factory has shown fluctuations over the past five years. In 2020, the pretax margin was negative at -17.96%, indicating that the company's expenses exceeded its pre-tax income. However, there was a notable improvement in 2021, with the pretax margin increasing to 2.45%. Subsequently, in 2022 and 2023, the pretax margin decreased to 1.00% and then increased to 2.91%.
The most recent financial year, 2024, shows a further improvement in the pretax margin, reaching 4.78%. This positive trend suggests that the company has been able to better manage its expenses relative to its pre-tax income, leading to a healthier financial performance. Overall, while there have been fluctuations, the upward trajectory of the pretax margin over the past few years is a positive indicator for The Cheesecake Factory's financial health and efficiency in managing costs.
Peer comparison
Dec 31, 2024