CHEESECAKE FACTORY INC/THE (CAKE) Stock Fundamental Analysis
NASDAQ:CAKE - US1630721017 - Common Stock
60.73 USD
-0.97 (-1.57%)
CAKE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 134 industry peers in the Hotels, Restaurants & Leisure industry. While CAKE is still in line with the averages on profitability rating, there are concerns on its financial health. 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
CAKE has a Return On Assets of 5.04%. This is in the better half of the industry: CAKE outperforms 69.40% of its industry peers.
With an excellent Return On Equity value of 39.63%, CAKE belongs to the best of the industry, outperforming 88.06% of the companies in the same industry.
The Return On Invested Capital of CAKE (6.92%) is better than 60.45% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CAKE is significantly below the industry average of 16.00%.
The 3 year average ROIC (5.05%) for CAKE is below the current ROIC(6.92%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 4.33%, CAKE is in line with its industry, outperforming 54.48% of the companies in the same industry.
CAKE's Profit Margin has declined in the last couple of years.
The Operating Margin of CAKE (5.77%) is comparable to the rest of the industry.
CAKE's Operating Margin has been stable in the last couple of years.
The Gross Margin of CAKE (77.95%) is better than 91.79% 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 | 5.77% | ||
| 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.
Compared to 5 years ago, CAKE has more shares outstanding
Compared to 1 year ago, CAKE has an improved debt to assets ratio.
2.2 Solvency
CAKE has an Altman-Z score of 2.53. 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.
CAKE has a Altman-Z score of 2.53. This is in the better half of the industry: CAKE outperforms 64.93% of its industry peers.
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.
CAKE's Debt to FCF ratio of 4.82 is fine compared to the rest of the industry. CAKE outperforms 76.12% 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 (1.40) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 4.82 | ||
| Altman-Z | 2.53 |
ROIC/WACC0.8
WACC8.62%
2.3 Liquidity
CAKE has a Current 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.
CAKE has a Current ratio of 0.51. This is in the lower half of the industry: CAKE underperforms 74.63% of its industry peers.
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.
With a Quick ratio value of 0.42, CAKE is not doing good in the industry: 76.12% of the companies in the same industry are doing better.
| 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 11.79% on average over the next years. This is quite good.
Based on estimates for the next years, CAKE will show a small growth in Revenue. The Revenue will grow by 4.87% on average per year.
EPS Next Y12.15%
EPS Next 2Y11.32%
EPS Next 3Y11.79%
EPS Next 5YN/A
Revenue Next Year5.71%
Revenue Next 2Y5.72%
Revenue Next 3Y5.93%
Revenue Next 5Y4.87%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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
The Price/Earnings ratio is 16.37, which indicates a correct valuation of CAKE.
Compared to the rest of the industry, the Price/Earnings ratio of CAKE indicates a somewhat cheap valuation: CAKE is cheaper than 78.36% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.84, CAKE is valued a bit cheaper.
With a Price/Forward Earnings ratio of 14.25, CAKE is valued correctly.
Based on the Price/Forward Earnings ratio, CAKE is valued a bit cheaper than 76.12% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.48, CAKE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.37 | ||
| Fwd PE | 14.25 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CAKE is valued a bit cheaper than the industry average as 61.94% of the companies are valued more expensively.
CAKE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CAKE is cheaper than 70.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.22 | ||
| EV/EBITDA | 11.23 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of CAKE may justify a higher PE ratio.
PEG (NY)1.35
PEG (5Y)2.88
EPS Next 2Y11.32%
EPS Next 3Y11.79%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.74%, CAKE has a reasonable but not impressive dividend return.
CAKE's Dividend Yield is a higher than the industry average which is at 4.09.
Compared to the average S&P500 Dividend Yield of 2.32, CAKE is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
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
CAKE pays out 33.45% of its income as dividend. This is a sustainable payout ratio.
CAKE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP33.45%
EPS Next 2Y11.32%
EPS Next 3Y11.79%
NASDAQ:CAKE (9/4/2025, 2:40:01 PM)
60.73
-0.97 (-1.57%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners112.03%
Inst Owner Change2.11%
Ins Owners8.08%
Ins Owner Change-4.2%
Market Cap3.02B
Analysts74.07
Price Target67.77 (11.59%)
Short Float %19.24%
Short Ratio6.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
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)12.96%
PT rev (3m)21.31%
EPS NQ rev (1m)1.23%
EPS NQ rev (3m)1.28%
EPS NY rev (1m)3%
EPS NY rev (3m)3.06%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)-0.84%
Revenue NY rev (1m)0.42%
Revenue NY rev (3m)0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.37 | ||
| Fwd PE | 14.25 | ||
| P/S | 0.82 | ||
| P/FCF | 23.22 | ||
| P/OCF | 9.77 | ||
| P/B | 7.54 | ||
| P/tB | 20.33 | ||
| EV/EBITDA | 11.23 |
EPS(TTM)3.71
EY6.11%
EPS(NY)4.26
Fwd EY7.02%
FCF(TTM)2.62
FCFY4.31%
OCF(TTM)6.22
OCFY10.24%
SpS73.67
BVpS8.05
TBVpS2.99
PEG (NY)1.35
PEG (5Y)2.88
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 | 2.53 |
F-Score7
WACC8.62%
ROIC/WACC0.8
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 Y12.15%
EPS Next 2Y11.32%
EPS Next 3Y11.79%
EPS Next 5YN/A
Revenue 1Y (TTM)4.77%
Revenue growth 3Y6.95%
Revenue growth 5Y7.61%
Sales Q2Q%5.73%
Revenue Next Year5.71%
Revenue Next 2Y5.72%
Revenue Next 3Y5.93%
Revenue Next 5Y4.87%
EBIT growth 1Y27.18%
EBIT growth 3Y15.92%
EBIT growth 5Y8.87%
EBIT Next Year77.42%
EBIT Next 3Y28%
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%