CHEESECAKE FACTORY INC/THE (CAKE) Stock Fundamental Analysis
NASDAQ:CAKE • US1630721017
63.95 USD
+0.41 (+0.65%)
At close: Feb 23, 2026
63.84 USD
-0.11 (-0.17%)
After Hours: 2/23/2026, 8:00:03 PM
CAKE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 126 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year CAKE was profitable.
- In the past year CAKE had a positive cash flow from operations.
- Each year in the past 5 years CAKE has been profitable.
- CAKE had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- CAKE has a better Return On Assets (4.96%) than 68.25% of its industry peers.
- With an excellent Return On Equity value of 37.81%, CAKE belongs to the best of the industry, outperforming 87.30% of the companies in the same industry.
- CAKE has a better Return On Invested Capital (8.08%) than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.96% | ||
| ROE | 37.81% | ||
| ROIC | 8.08% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- CAKE's Profit Margin of 4.33% is in line compared to the rest of the industry. CAKE outperforms 56.35% of its industry peers.
- CAKE's Profit Margin has improved in the last couple of years.
- With a Operating Margin value of 5.89%, CAKE is not doing good in the industry: 61.11% of the companies in the same industry are doing better.
- In the last couple of years the Operating Margin of CAKE has grown nicely.
- CAKE's Gross Margin of 78.13% is amongst the best of the industry. CAKE outperforms 91.27% of its industry peers.
- In the last couple of years the Gross Margin of CAKE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.89% | ||
| PM (TTM) | 4.33% | ||
| GM | 78.13% |
OM growth 3Y33.21%
OM growth 5YN/A
PM growth 3Y44.74%
PM growth 5YN/A
GM growth 3Y1.26%
GM growth 5Y0.34%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CAKE is creating some value.
- CAKE has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- CAKE has an Altman-Z score of 2.52. 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.
- The Altman-Z score of CAKE (2.52) is better than 65.87% of its industry peers.
- CAKE has a debt to FCF ratio of 3.97. This is a good value and a sign of high solvency as CAKE would need 3.97 years to pay back of all of its debts.
- CAKE has a Debt to FCF ratio of 3.97. This is in the better half of the industry: CAKE outperforms 78.57% of its industry peers.
- A Debt/Equity ratio of 1.32 is on the high side and indicates that CAKE has dependencies on debt financing.
- CAKE has a Debt to Equity ratio (1.32) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | 3.97 | ||
| Altman-Z | 2.52 |
ROIC/WACC1.02
WACC7.9%
2.3 Liquidity
- CAKE has a Current Ratio of 0.55. 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 Current ratio of CAKE (0.55) is worse than 77.78% of its industry peers.
- A Quick Ratio of 0.47 indicates that CAKE may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.47, CAKE is doing worse than 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
- CAKE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.59%, which is quite good.
- The Earnings Per Share has been growing by 35.36% on average over the past years. This is a very strong growth
- The Revenue has been growing slightly by 4.75% in the past year.
- Measured over the past years, CAKE shows a quite strong growth in Revenue. The Revenue has been growing by 13.60% on average per year.
EPS 1Y (TTM)9.59%
EPS 3Y35.36%
EPS 5YN/A
EPS Q2Q%-3.85%
Revenue 1Y (TTM)4.75%
Revenue growth 3Y4.34%
Revenue growth 5Y13.6%
Sales Q2Q%4.41%
3.2 Future
- CAKE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.30% yearly.
- CAKE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.64% yearly.
EPS Next Y8.56%
EPS Next 2Y9.81%
EPS Next 3Y10.3%
EPS Next 5YN/A
Revenue Next Year4.67%
Revenue Next 2Y5.67%
Revenue Next 3Y5.46%
Revenue Next 5Y4.64%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 16.96, CAKE is valued correctly.
- Based on the Price/Earnings ratio, CAKE is valued a bit cheaper than the industry average as 72.22% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 26.64, CAKE is valued a bit cheaper.
- Based on the Price/Forward Earnings ratio of 15.62, the valuation of CAKE can be described as correct.
- Based on the Price/Forward Earnings ratio, CAKE is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 27.75. CAKE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.96 | ||
| Fwd PE | 15.62 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CAKE is on the same level as its industry peers.
- Based on the Price/Free Cash Flow ratio, CAKE is valued a bit cheaper than 72.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.13 | ||
| EV/EBITDA | 11.15 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of CAKE may justify a higher PE ratio.
PEG (NY)1.98
PEG (5Y)N/A
EPS Next 2Y9.81%
EPS Next 3Y10.3%
5. Dividend
5.1 Amount
- CAKE has a Yearly Dividend Yield of 1.89%.
- CAKE's Dividend Yield is a higher than the industry average which is at 1.09.
- CAKE's Dividend Yield is comparable with the S&P500 average which is at 1.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.89% |
5.2 History
- 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)N/A
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
- CAKE pays out 32.74% of its income as dividend. This is a sustainable payout ratio.
DP32.74%
EPS Next 2Y9.81%
EPS Next 3Y10.3%
63.95
+0.41 (+0.65%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)02-18 2026-02-18/amc
Earnings (Next)04-28 2026-04-28/amc
Inst Owners115.59%
Inst Owner Change-36.09%
Ins Owners8.01%
Ins Owner Change27.26%
Market Cap3.19B
Revenue(TTM)3.75B
Net Income(TTM)160.81M
Analysts73.79
Price Target61.48 (-3.86%)
Short Float %20.64%
Short Ratio7.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.89% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP32.74%
Div Incr Years0
Div Non Decr Years2
Ex-Date03-04 2026-03-04 (0.3)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.64%
Min EPS beat(2)6.79%
Max EPS beat(2)10.48%
EPS beat(4)4
Avg EPS beat(4)10.14%
Min EPS beat(4)6.79%
Max EPS beat(4)12.08%
EPS beat(8)8
Avg EPS beat(8)10.57%
EPS beat(12)10
Avg EPS beat(12)6.33%
EPS beat(16)10
Avg EPS beat(16)-5.94%
Revenue beat(2)0
Avg Revenue beat(2)-1.87%
Min Revenue beat(2)-2.56%
Max Revenue beat(2)-1.19%
Revenue beat(4)0
Avg Revenue beat(4)-1.7%
Min Revenue beat(4)-2.56%
Max Revenue beat(4)-1.06%
Revenue beat(8)0
Avg Revenue beat(8)-1.92%
Revenue beat(12)0
Avg Revenue beat(12)-2.31%
Revenue beat(16)0
Avg Revenue beat(16)-2.26%
PT rev (1m)1.17%
PT rev (3m)1.78%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)-0.54%
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.01%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-0.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.96 | ||
| Fwd PE | 15.62 | ||
| P/S | 0.86 | ||
| P/FCF | 20.13 | ||
| P/OCF | 9.95 | ||
| P/B | 7.49 | ||
| P/tB | 18.4 | ||
| EV/EBITDA | 11.15 |
EPS(TTM)3.77
EY5.9%
EPS(NY)4.09
Fwd EY6.4%
FCF(TTM)3.18
FCFY4.97%
OCF(TTM)6.43
OCFY10.05%
SpS74.46
BVpS8.53
TBVpS3.48
PEG (NY)1.98
PEG (5Y)N/A
Graham Number26.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.96% | ||
| ROE | 37.81% | ||
| ROCE | 8.84% | ||
| ROIC | 8.08% | ||
| ROICexc | 8.76% | ||
| ROICexgc | 9.85% | ||
| OM | 5.89% | ||
| PM (TTM) | 4.33% | ||
| GM | 78.13% | ||
| FCFM | 4.27% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y33.21%
OM growth 5YN/A
PM growth 3Y44.74%
PM growth 5YN/A
GM growth 3Y1.26%
GM growth 5Y0.34%
F-Score7
Asset Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | 3.97 | ||
| Debt/EBITDA | 1.72 | ||
| Cap/Depr | 151.71% | ||
| Cap/Sales | 4.37% | ||
| Interest Coverage | 19.27 | ||
| Cash Conversion | 98.5% | ||
| Profit Quality | 98.47% | ||
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.47 | ||
| Altman-Z | 2.52 |
F-Score7
WACC7.9%
ROIC/WACC1.02
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)9.59%
EPS 3Y35.36%
EPS 5YN/A
EPS Q2Q%-3.85%
EPS Next Y8.56%
EPS Next 2Y9.81%
EPS Next 3Y10.3%
EPS Next 5YN/A
Revenue 1Y (TTM)4.75%
Revenue growth 3Y4.34%
Revenue growth 5Y13.6%
Sales Q2Q%4.41%
Revenue Next Year4.67%
Revenue Next 2Y5.67%
Revenue Next 3Y5.46%
Revenue Next 5Y4.64%
EBIT growth 1Y23.32%
EBIT growth 3Y38.99%
EBIT growth 5YN/A
EBIT Next Year60.34%
EBIT Next 3Y23.54%
EBIT Next 5YN/A
FCF growth 1Y132.35%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y32.26%
OCF growth 3YN/A
OCF growth 5YN/A
CHEESECAKE FACTORY INC/THE / CAKE FAQ
What is the fundamental rating for CAKE stock?
ChartMill assigns a fundamental rating of 5 / 10 to CAKE.
What is the valuation status for CAKE stock?
ChartMill assigns a valuation rating of 5 / 10 to CHEESECAKE FACTORY INC/THE (CAKE). This can be considered as Fairly Valued.
What is the profitability of CAKE stock?
CHEESECAKE FACTORY INC/THE (CAKE) has a profitability rating of 6 / 10.
What is the valuation of CHEESECAKE FACTORY INC/THE based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CHEESECAKE FACTORY INC/THE (CAKE) is 16.96 and the Price/Book (PB) ratio is 7.49.
Can you provide the dividend sustainability for CAKE stock?
The dividend rating of CHEESECAKE FACTORY INC/THE (CAKE) is 4 / 10 and the dividend payout ratio is 32.74%.