DB:CF2

Stock Analysis Report

Executive Summary

The Cheesecake Factory Incorporated engages in the operation of restaurants.


Snowflake Analysis

Outstanding track record average dividend payer.


Similar Companies

Share Price & News

How has Cheesecake Factory's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CF2 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.8%

CF2

-14.7%

DE Hospitality

-6.8%

DE Market


1 Year Return

-13.9%

CF2

-9.7%

DE Hospitality

6.5%

DE Market

Return vs Industry: CF2 underperformed the German Hospitality industry which returned -9.7% over the past year.

Return vs Market: CF2 underperformed the German Market which returned 6.5% over the past year.


Shareholder returns

CF2IndustryMarket
7 Day-4.8%-14.7%-6.8%
30 Day0%-10.6%-3.7%
90 Day-8.8%-27.5%-3.6%
1 Year-11.1%-13.9%-5.7%-9.7%9.8%6.5%
3 Year-34.3%-39.2%-22.9%-33.4%6.8%-2.6%
5 Year-7.9%-17.2%-22.8%-39.1%12.5%-2.9%

Price Volatility Vs. Market

How volatile is Cheesecake Factory's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Cheesecake Factory undervalued compared to its fair value and its price relative to the market?

12.66x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CF2 (€35.4) is trading above our estimate of fair value (€31.87)

Significantly Below Fair Value: CF2 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CF2 is good value based on its PE Ratio (12.7x) compared to the Hospitality industry average (25.2x).

PE vs Market: CF2 is good value based on its PE Ratio (12.7x) compared to the German market (20x).


Price to Earnings Growth Ratio

PEG Ratio: CF2 is poor value based on its PEG Ratio (20x)


Price to Book Ratio

PB vs Industry: CF2 is overvalued based on its PB Ratio (3.1x) compared to the DE Hospitality industry average (2.2x).


Next Steps

Future Growth

How is Cheesecake Factory forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

0.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CF2's forecast earnings growth (0.6% per year) is above the savings rate (-0.4%).

Earnings vs Market: CF2's earnings (0.6% per year) are forecast to grow slower than the German market (13.1% per year).

High Growth Earnings: CF2's earnings are forecast to grow, but not significantly.

Revenue vs Market: CF2's revenue (10.1% per year) is forecast to grow faster than the German market (5.1% per year).

High Growth Revenue: CF2's revenue (10.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CF2's Return on Equity is forecast to be high in 3 years time (23.4%)


Next Steps

Past Performance

How has Cheesecake Factory performed over the past 5 years?

0.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CF2 has high quality earnings.

Growing Profit Margin: CF2's current net profit margins (5.1%) are higher than last year (4.3%).


Past Earnings Growth Analysis

Earnings Trend: CF2's earnings have grown by 0.5% per year over the past 5 years.

Accelerating Growth: CF2's earnings growth over the past year (27.9%) exceeds its 5-year average (0.5% per year).

Earnings vs Industry: CF2 earnings growth over the past year (27.9%) exceeded the Hospitality industry -36.8%.


Return on Equity

High ROE: CF2's Return on Equity (23.8%) is considered high.


Next Steps

Financial Health

How is Cheesecake Factory's financial position?


Financial Position Analysis

Short Term Liabilities: CF2's short term assets ($449.1M) exceed its short term liabilities ($433.8M).

Long Term Liabilities: CF2's short term assets ($449.1M) do not cover its long term liabilities ($1.4B).


Debt to Equity History and Analysis

Debt Level: CF2's debt to equity ratio (62.8%) is considered high.

Reducing Debt: CF2's debt to equity ratio has increased from 14% to 62.8% over the past 5 years.

Debt Coverage: CF2's debt is well covered by operating cash flow (67.3%).

Interest Coverage: CF2's interest payments on its debt are well covered by EBIT (51.3x coverage).


Balance Sheet

Inventory Level: CF2 has a high level of physical assets or inventory.

Debt Coverage by Assets: CF2's debt is covered by short term assets (assets are 1.3x debt).


Next Steps

Dividend

What is Cheesecake Factory's current dividend yield, its reliability and sustainability?

3.93%

Current Dividend Yield


Upcoming Dividend Payment

TodayFeb 27 2020Ex Dividend DateMar 06 2020Dividend Pay DateMar 20 202014 days from Ex DividendBuy in the next 7 days to receive upcoming dividend

Dividend Yield vs Market

Notable Dividend: CF2's dividend (3.93%) is higher than the bottom 25% of dividend payers in the German market (1.46%).

High Dividend: CF2's dividend (3.93%) is in the top 25% of dividend payers in the German market (3.81%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, CF2 has been paying a dividend for less than 10 years.

Growing Dividend: CF2's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (47.6%), CF2's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CF2's dividends in 3 years are forecast to be covered by earnings (56.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.8yrs

Average management tenure


CEO

David Overton (73yo)

28yrs

Tenure

US$6,267,151

Compensation

Mr. David M. Overton Founded Grand Lux Cafe, LLC in 1999. Mr. Overton Co-founded The Cheesecake Factory Incorporated's predecessor company in 1972. He has been Chairman and Chief Executive Officer of Chees ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD6.27M) is above average for companies of similar size in the German market ($USD1.68M).

Compensation vs Earnings: David's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
David Overton
Chairman & CEO28yrsUS$6.27m7.05% $112.3m
David Gordon
President7yrsUS$2.08m0.065% $1.0m
Matthew Clark
Executive VP & CFO2.6yrsUS$1.69m0.028% $443.5k
Scarlett May
Executive VP1.8yrsUS$1.36m0.018% $285.4k
Keith Carango
President of The Cheesecake Factory Bakery Incorporated1.8yrsUS$1.03m0.051% $814.6k
Cheryl Slomann
Chief Accounting Officer15yrsUS$387.59k0.062% $995.2k
Stacy Feit
Vice President of Investor Relations0yrsno datano data
Donald Evans
Chief Marketing Officer & Senior VP8.5yrsno datano data
Dina Barmasse-Gray
Senior Vice President of Human Resources10yrsno datano data
Donald Moore
Chief Culinary Officer & Executive VP0yrsno datano data

7.8yrs

Average Tenure

53.5yo

Average Age

Experienced Management: CF2's management team is seasoned and experienced (7.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Overton
Chairman & CEO28yrsUS$6.27m7.05% $112.3m
David Pittaway
Independent Director10.8yrsUS$210.00k0.028% $439.8k
Herbert Simon
Independent Director8.7yrsUS$195.00k0.44% $7.0m
Laurence Mindel
Independent Director7.9yrsUS$195.00k0.028% $446.2k
Jerome Kransdorf
Lead Director7.9yrsUS$227.50k0.031% $490.8k
Alexander Cappello
Independent Director12yrsUS$207.50k0.011% $181.7k
Edie Ames
Independent Director3.2yrsUS$195.00k0.010% $165.7k

8.7yrs

Average Tenure

73yo

Average Age

Experienced Board: CF2's board of directors are considered experienced (8.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

The Cheesecake Factory Incorporated's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Cheesecake Factory Incorporated
  • Ticker: CF2
  • Exchange: DB
  • Founded: 1972
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: US$1.733b
  • Listing Market Cap: US$1.593b
  • Shares outstanding: 44.63m
  • Website: https://www.thecheesecakefactory.com

Number of Employees


Location

  • The Cheesecake Factory Incorporated
  • 26901 Malibu Hills Road
  • Calabasas Hills
  • Calabasas
  • California
  • 91301
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CAKENasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDSep 1992
CF2DB (Deutsche Boerse AG)YesCommon StockDEEURSep 1992

Biography

The Cheesecake Factory Incorporated engages in the operation of restaurants. The company produces cheesecakes and other baked products for own restaurants and international licensees, as well as external foodservice operators, retailers, and distributors. As of December 10, 2019, it owned and operated 294 restaurants throughout the United States and Canada under brands, including The Cheesecake Factory and North Italia; and a collection of Fox Restaurant Concepts, as well as 24 The Cheesecake Factory restaurants operated under licensing agreements internationally. The company was founded in 1972 and is headquartered in Calabasas, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 22:24
End of Day Share Price2020/02/26 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.