CHEESECAKE FACTORY INC/THE (CAKE) Stock Fundamental Analysis
USA - NASDAQ:CAKE - US1630721017 - Common Stock
55.45 USD
+0.28 (+0.51%)
Overall CAKE gets a fundamental rating of 5 out of 10. We evaluated CAKE against 135 industry peers in the Hotels, Restaurants & Leisure industry. There are concerns on the financial health of CAKE while its profitability can be described as average. CAKE has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
CAKE had positive earnings in the past year.
In the past year CAKE had a positive cash flow from operations.
CAKE had positive earnings in 4 of the past 5 years.
In the past 5 years CAKE always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 5.04%, CAKE is doing good in the industry, outperforming 67.41% of the companies in the same industry.
The Return On Equity of CAKE (39.63%) is better than 88.89% of its industry peers.
CAKE's Return On Invested Capital of 6.92% is fine compared to the rest of the industry. CAKE outperforms 60.74% of its industry peers.
CAKE had an Average Return On Invested Capital over the past 3 years of 5.05%. This is significantly below the industry average of 15.67%.
The last Return On Invested Capital (6.92%) for CAKE is above the 3 year average (5.05%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.04% | ||
| ROE | 39.63% | ||
| ROIC | 6.92% |
ROA(3y)3.43%
ROA(5y)0.39%
ROE(3y)27.33%
ROE(5y)8.44%
ROIC(3y)5.05%
ROIC(5y)N/A
1.3 Margins
CAKE has a Profit Margin (4.33%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of CAKE has declined.
CAKE has a Operating Margin of 5.77%. This is comparable to the rest of the industry: CAKE outperforms 42.22% of its industry peers.
CAKE's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 77.95%, CAKE belongs to the top of the industry, outperforming 91.85% of the companies in the same industry.
CAKE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.77% | ||
| PM (TTM) | 4.33% | ||
| GM | 77.95% |
OM growth 3Y8.38%
OM growth 5Y1.18%
PM growth 3Y37.68%
PM growth 5Y-3.11%
GM growth 3Y-0.08%
GM growth 5Y0.03%
2. Health
2.1 Basic Checks
CAKE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
CAKE has more shares outstanding than it did 1 year ago.
CAKE has more shares outstanding than it did 5 years ago.
CAKE has a better debt/assets ratio than last year.
2.2 Solvency
CAKE has an Altman-Z score of 2.46. This is not the best score and indicates that CAKE is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.46, CAKE is in the better half of the industry, outperforming 65.19% of the companies in the same industry.
The Debt to FCF ratio of CAKE is 4.82, which is a neutral value as it means it would take CAKE, 4.82 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CAKE (4.82) is better than 76.30% of its industry peers.
A Debt/Equity ratio of 1.40 is on the high side and indicates that CAKE has dependencies on debt financing.
CAKE has a Debt to Equity ratio of 1.40. This is comparable to the rest of the industry: CAKE outperforms 57.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 4.82 | ||
| Altman-Z | 2.46 |
ROIC/WACC0.82
WACC8.41%
2.3 Liquidity
A Current Ratio of 0.51 indicates that CAKE may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.51, CAKE is doing worse than 73.33% of the companies in the same industry.
CAKE has a Quick Ratio of 0.51. This is a bad value and indicates that CAKE is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of CAKE (0.42) is worse than 75.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 23.26% over the past year.
The Earnings Per Share has been growing slightly by 5.68% on average over the past years.
The Revenue has been growing slightly by 4.77% in the past year.
The Revenue has been growing slightly by 7.61% on average over the past years.
EPS 1Y (TTM)23.26%
EPS 3Y17.14%
EPS 5Y5.68%
EPS Q2Q%6.42%
Revenue 1Y (TTM)4.77%
Revenue growth 3Y6.95%
Revenue growth 5Y7.61%
Sales Q2Q%5.73%
3.2 Future
The Earnings Per Share is expected to grow by 11.69% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.87% on average over the next years.
EPS Next Y12.31%
EPS Next 2Y11.34%
EPS Next 3Y11.69%
EPS Next 5YN/A
Revenue Next Year5.38%
Revenue Next 2Y5.73%
Revenue Next 3Y5.93%
Revenue Next 5Y4.87%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.95, the valuation of CAKE can be described as correct.
CAKE's Price/Earnings ratio is a bit cheaper when compared to the industry. CAKE is cheaper than 79.26% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.86. CAKE is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 13.00, CAKE is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CAKE indicates a somewhat cheap valuation: CAKE is cheaper than 79.26% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.29, CAKE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.95 | ||
| Fwd PE | 13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CAKE is valued a bit cheaper than 65.93% of the companies in the same industry.
74.07% of the companies in the same industry are more expensive than CAKE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.2 | ||
| EV/EBITDA | 10.2 |
4.3 Compensation for Growth
CAKE's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CAKE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.21
PEG (5Y)2.63
EPS Next 2Y11.34%
EPS Next 3Y11.69%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.97%, CAKE has a reasonable but not impressive dividend return.
CAKE's Dividend Yield is a higher than the industry average which is at 6.83.
CAKE's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
5.2 History
On average, the dividend of CAKE grows each year by 7.51%, which is quite nice.
CAKE has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of CAKE decreased in the last 3 years.
Dividend Growth(5Y)7.51%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
33.45% of the earnings are spent on dividend by CAKE. This is a low number and sustainable payout ratio.
CAKE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP33.45%
EPS Next 2Y11.34%
EPS Next 3Y11.69%
NASDAQ:CAKE (10/3/2025, 12:56:05 PM)
55.45
+0.28 (+0.51%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners112.99%
Inst Owner Change2.12%
Ins Owners8.02%
Ins Owner Change-4.2%
Market Cap2.76B
Analysts74.07
Price Target67.77 (22.22%)
Short Float %19.75%
Short Ratio6.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
Yearly Dividend1.04
Dividend Growth(5Y)7.51%
DP33.45%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.44%
Min EPS beat(2)6.79%
Max EPS beat(2)12.08%
EPS beat(4)4
Avg EPS beat(4)11.76%
Min EPS beat(4)6.79%
Max EPS beat(4)16.98%
EPS beat(8)7
Avg EPS beat(8)7.88%
EPS beat(12)9
Avg EPS beat(12)-3.74%
EPS beat(16)9
Avg EPS beat(16)-7.19%
Revenue beat(2)0
Avg Revenue beat(2)-1.59%
Min Revenue beat(2)-1.99%
Max Revenue beat(2)-1.19%
Revenue beat(4)0
Avg Revenue beat(4)-1.57%
Min Revenue beat(4)-2.04%
Max Revenue beat(4)-1.06%
Revenue beat(8)0
Avg Revenue beat(8)-2.03%
Revenue beat(12)0
Avg Revenue beat(12)-2.41%
Revenue beat(16)0
Avg Revenue beat(16)-2.29%
PT rev (1m)0%
PT rev (3m)17.46%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.87%
EPS NY rev (1m)0.14%
EPS NY rev (3m)3.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.35%
Revenue NY rev (1m)-0.31%
Revenue NY rev (3m)0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.95 | ||
| Fwd PE | 13 | ||
| P/S | 0.75 | ||
| P/FCF | 21.2 | ||
| P/OCF | 8.92 | ||
| P/B | 6.89 | ||
| P/tB | 18.56 | ||
| EV/EBITDA | 10.2 |
EPS(TTM)3.71
EY6.69%
EPS(NY)4.26
Fwd EY7.69%
FCF(TTM)2.62
FCFY4.72%
OCF(TTM)6.22
OCFY11.21%
SpS73.67
BVpS8.05
TBVpS2.99
PEG (NY)1.21
PEG (5Y)2.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.04% | ||
| ROE | 39.63% | ||
| ROCE | 8.76% | ||
| ROIC | 6.92% | ||
| ROICexc | 7.38% | ||
| ROICexgc | 8.3% | ||
| OM | 5.77% | ||
| PM (TTM) | 4.33% | ||
| GM | 77.95% | ||
| FCFM | 3.55% |
ROA(3y)3.43%
ROA(5y)0.39%
ROE(3y)27.33%
ROE(5y)8.44%
ROIC(3y)5.05%
ROIC(5y)N/A
ROICexc(3y)5.24%
ROICexc(5y)N/A
ROICexgc(3y)5.93%
ROICexgc(5y)N/A
ROCE(3y)6.39%
ROCE(5y)N/A
ROICexcg growth 3Y10.35%
ROICexcg growth 5Y5.82%
ROICexc growth 3Y11%
ROICexc growth 5Y8.1%
OM growth 3Y8.38%
OM growth 5Y1.18%
PM growth 3Y37.68%
PM growth 5Y-3.11%
GM growth 3Y-0.08%
GM growth 5Y0.03%
F-Score7
Asset Turnover1.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 4.82 | ||
| Debt/EBITDA | 1.77 | ||
| Cap/Depr | 171.33% | ||
| Cap/Sales | 4.89% | ||
| Interest Coverage | 27.39 | ||
| Cash Conversion | 97.89% | ||
| Profit Quality | 82% | ||
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z | 2.46 |
F-Score7
WACC8.41%
ROIC/WACC0.82
Cap/Depr(3y)148.68%
Cap/Depr(5y)115.39%
Cap/Sales(3y)4.13%
Cap/Sales(5y)3.45%
Profit Quality(3y)81.91%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)23.26%
EPS 3Y17.14%
EPS 5Y5.68%
EPS Q2Q%6.42%
EPS Next Y12.31%
EPS Next 2Y11.34%
EPS Next 3Y11.69%
EPS Next 5YN/A
Revenue 1Y (TTM)4.77%
Revenue growth 3Y6.95%
Revenue growth 5Y7.61%
Sales Q2Q%5.73%
Revenue Next Year5.38%
Revenue Next 2Y5.73%
Revenue Next 3Y5.93%
Revenue Next 5Y4.87%
EBIT growth 1Y27.18%
EBIT growth 3Y15.92%
EBIT growth 5Y8.87%
EBIT Next Year78.16%
EBIT Next 3Y27.97%
EBIT Next 5YN/A
FCF growth 1Y180.82%
FCF growth 3Y-9.76%
FCF growth 5Y-5.64%
OCF growth 1Y76.03%
OCF growth 3Y8%
OCF growth 5Y4.17%