Loading...

Cheesecake Factory

Nasdaq:CAKE
Snowflake Description

Adequate balance sheet second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CAKE
Nasdaq
$2B
Market Cap
  1. Home
  2. US
  3. Consumer Services
Company description

The Cheesecake Factory Incorporated engages in the operation of restaurants. The last earnings update was 73 days ago. More info.


Add to Portfolio Compare Print
CAKE Share Price and Events
7 Day Returns
3.5%
NasdaqGS:CAKE
0.6%
US Hospitality
-0.3%
US Market
1 Year Returns
-25.8%
NasdaqGS:CAKE
-5.1%
US Hospitality
3.4%
US Market
CAKE Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Cheesecake Factory (CAKE) 3.5% -3.1% -6.2% -25.8% -14.6% 1.7%
US Hospitality 0.6% 1.9% -1.6% -5.1% 44% 23.4%
US Market -0.3% 2.9% 2.1% 3.4% 36.2% 41.3%
1 Year Return vs Industry and Market
  • CAKE underperformed the Hospitality industry which returned -5.1% over the past year.
  • CAKE underperformed the Market in United States of America which returned 3.4% over the past year.
Price Volatility
CAKE
Industry
5yr Volatility vs Market

Value

 Is Cheesecake Factory undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Cheesecake Factory to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Cheesecake Factory.

NasdaqGS:CAKE Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 20 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.9%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:CAKE
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Hospitality Unlevered Beta Simply Wall St/ S&P Global 0.92
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.923 (1 + (1- 21%) (53.13%))
1.208
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.21
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.208 * 5.96%)
9.93%

Discounted Cash Flow Calculation for NasdaqGS:CAKE using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Cheesecake Factory is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:CAKE DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.93%)
2020 168.63 Analyst x4 153.39
2021 163.02 Est @ -3.32% 134.90
2022 160.56 Est @ -1.51% 120.86
2023 160.18 Est @ -0.24% 109.68
2024 161.23 Est @ 0.65% 100.42
2025 163.29 Est @ 1.28% 92.52
2026 166.08 Est @ 1.71% 85.60
2027 169.43 Est @ 2.02% 79.44
2028 173.21 Est @ 2.23% 73.87
2029 177.34 Est @ 2.38% 68.80
Present value of next 10 years cash flows $1,019.47
NasdaqGS:CAKE DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $177.34 × (1 + 2.73%) ÷ (9.93% – 2.73%)
$2,529.77
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $2,529.77 ÷ (1 + 9.93%)10
$981.44
NasdaqGS:CAKE Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,019.47 + $981.44
$2,000.91
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,000.91 / 45.21
$44.26
NasdaqGS:CAKE Discount to Share Price
Calculation Result
Value per share (USD) From above. $44.26
Current discount Discount to share price of $44.13
= -1 x ($44.13 - $44.26) / $44.26
0.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Cheesecake Factory is available for.
Intrinsic value
0%
Share price is $44.13 vs Future cash flow value of $44.26
Current Discount Checks
For Cheesecake Factory to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Cheesecake Factory's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Cheesecake Factory's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Cheesecake Factory's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Cheesecake Factory's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:CAKE PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-04-02) in USD $2.23
NasdaqGS:CAKE Share Price ** NasdaqGS (2019-07-18) in USD $44.13
United States of America Hospitality Industry PE Ratio Median Figure of 74 Publicly-Listed Hospitality Companies 22.45x
United States of America Market PE Ratio Median Figure of 3,083 Publicly-Listed Companies 17.88x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Cheesecake Factory.

NasdaqGS:CAKE PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:CAKE Share Price ÷ EPS (both in USD)

= 44.13 ÷ 2.23

19.83x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cheesecake Factory is good value based on earnings compared to the US Hospitality industry average.
  • Cheesecake Factory is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Cheesecake Factory's expected growth come at a high price?
Raw Data
NasdaqGS:CAKE PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 19.83x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts
5.5%per year
United States of America Hospitality Industry PEG Ratio Median Figure of 56 Publicly-Listed Hospitality Companies 1.85x
United States of America Market PEG Ratio Median Figure of 2,124 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

NasdaqGS:CAKE PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 19.83x ÷ 5.5%

3.58x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cheesecake Factory is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Cheesecake Factory's assets?
Raw Data
NasdaqGS:CAKE PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-04-02) in USD $11.96
NasdaqGS:CAKE Share Price * NasdaqGS (2019-07-18) in USD $44.13
United States of America Hospitality Industry PB Ratio Median Figure of 112 Publicly-Listed Hospitality Companies 2.17x
United States of America Market PB Ratio Median Figure of 5,245 Publicly-Listed Companies 1.8x
NasdaqGS:CAKE PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:CAKE Share Price ÷ Book Value per Share (both in USD)

= 44.13 ÷ 11.96

3.69x

* Primary Listing of Cheesecake Factory.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cheesecake Factory is overvalued based on assets compared to the US Hospitality industry average.
X
Value checks
We assess Cheesecake Factory's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Hospitality industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Hospitality industry average (and greater than 0)? (1 check)
  5. Cheesecake Factory has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Cheesecake Factory expected to perform in the next 1 to 3 years based on estimates from 20 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
5.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Cheesecake Factory expected to grow at an attractive rate?
  • Cheesecake Factory's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Cheesecake Factory's earnings growth is positive but not above the United States of America market average.
  • Cheesecake Factory's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:CAKE Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:CAKE Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts 5.5%
NasdaqGS:CAKE Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 20 Analysts 5%
United States of America Hospitality Industry Earnings Growth Rate Market Cap Weighted Average 16.6%
United States of America Hospitality Industry Revenue Growth Rate Market Cap Weighted Average 7.5%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:CAKE Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:CAKE Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 2,658 121 3
2020-12-31 2,578 279 124 20
2019-12-31 2,436 261 118 19
NasdaqGS:CAKE Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-04-02 2,347 250 100
2019-01-01 2,332 291 99
2018-10-02 2,331 267 141
2018-07-03 2,305 265 139
2018-04-03 2,282 266 148
2018-01-02 2,261 239 157
2017-10-03 2,292 246 132
2017-07-04 2,296 272 140
2017-04-04 2,285 282 141
2017-01-03 2,276 316 139
2016-09-27 2,199 299 134
2016-06-28 2,166 273 126

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Cheesecake Factory's earnings are expected to grow by 5.5% yearly, however this is not considered high growth (20% yearly).
  • Cheesecake Factory's revenue is expected to grow by 5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:CAKE Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below

All data from Cheesecake Factory Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:CAKE Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 2.84 2.84 2.84 1.00
2020-12-31 2.85 3.21 2.66 11.00
2019-12-31 2.64 2.78 2.51 10.00
NasdaqGS:CAKE Past Financials Data
Date (Data in USD Millions) EPS *
2019-04-02 2.23
2019-01-01 2.19
2018-10-02 3.09
2018-07-03 3.02
2018-04-03 3.20
2018-01-02 3.35
2017-10-03 2.79
2017-07-04 2.94
2017-04-04 2.94
2017-01-03 2.91
2016-09-27 2.78
2016-06-28 2.59

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Cheesecake Factory is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Cheesecake Factory's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Cheesecake Factory has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Cheesecake Factory performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Cheesecake Factory's growth in the last year to its industry (Hospitality).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Cheesecake Factory's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Cheesecake Factory's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Cheesecake Factory's 1-year earnings growth is negative, it can't be compared to the US Hospitality industry average.
Earnings and Revenue History
Cheesecake Factory's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Cheesecake Factory Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:CAKE Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-04-02 2,347.12 99.99 327.98
2019-01-01 2,332.33 99.04 310.10
2018-10-02 2,330.57 140.60 333.31
2018-07-03 2,305.08 138.57 331.28
2018-04-03 2,281.77 148.38 325.03
2018-01-02 2,260.50 157.39 296.10
2017-10-03 2,291.83 132.04 297.66
2017-07-04 2,296.46 140.16 296.96
2017-04-04 2,285.45 140.58 298.46
2017-01-03 2,275.72 139.49 298.80
2016-09-27 2,199.41 134.31 287.56
2016-06-28 2,166.08 125.92 287.10
2016-03-29 2,136.33 122.05 288.41
2015-12-29 2,100.61 116.52 285.31
2015-09-29 2,073.44 113.81 269.30
2015-06-30 2,045.87 111.86 265.31
2015-03-31 2,013.17 107.18 257.54
2014-12-30 1,976.62 101.28 256.46
2014-09-30 1,952.03 109.79 133.14
2014-07-01 1,922.61 113.05 132.53
2014-04-01 1,896.32 111.58 131.20
2013-12-31 1,877.91 114.36 247.51
2013-10-01 1,867.53 103.50 125.18
2013-07-02 1,851.65 103.18 116.99
2013-04-02 1,836.28 102.99 115.96
2013-01-01 1,809.02 98.42 116.63
2012-10-02 1,822.02 106.23 112.38

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Cheesecake Factory has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Cheesecake Factory used its assets less efficiently than the US Hospitality industry average last year based on Return on Assets.
  • Cheesecake Factory's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Cheesecake Factory's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Hospitality industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Cheesecake Factory has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Cheesecake Factory's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Cheesecake Factory's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Cheesecake Factory's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Cheesecake Factory's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Cheesecake Factory's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 7.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Cheesecake Factory Company Filings, last reported 3 months ago.

NasdaqGS:CAKE Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-04-02 542.24 20.00 22.53
2019-01-01 571.06 123.10 26.58
2018-10-02 613.41 145.56 12.64
2018-07-03 612.78 134.79 29.37
2018-04-03 594.19 142.90 24.80
2018-01-02 613.53 118.63 6.01
2017-10-03 583.36 143.61 19.80
2017-07-04 640.53 104.61 66.31
2017-04-04 627.54 107.54 65.67
2017-01-03 603.21 100.58 53.84
2016-09-27 589.53 98.50 65.85
2016-06-28 596.84 91.97 79.62
2016-03-29 585.56 89.17 53.92
2015-12-29 588.54 87.84 43.85
2015-09-29 579.54 85.26 29.61
2015-06-30 549.12 104.22 61.55
2015-03-31 506.50 101.55 39.48
2014-12-30 556.51 77.17 58.02
2014-09-30 522.57 101.65 22.14
2014-07-01 509.14 97.47 25.58
2014-04-01 502.52 94.40 31.47
2013-12-31 577.35 66.20 61.75
2013-10-01 583.17 64.30 82.63
2013-07-02 634.30 59.59 130.62
2013-04-02 581.84 56.45 87.14
2013-01-01 579.73 55.12 83.57
2012-10-02 575.74 56.19 56.43
  • Cheesecake Factory's level of debt (3.7%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (18.8% vs 3.7% today).
  • Debt is well covered by operating cash flow (1249.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 25.6x coverage).
X
Financial health checks
We assess Cheesecake Factory's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Cheesecake Factory has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.99%
Current annual income from Cheesecake Factory dividends. Estimated to be 3.28% next year.
If you bought $2,000 of Cheesecake Factory shares you are expected to receive $60 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Cheesecake Factory's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).
  • Cheesecake Factory's dividend is below the markets top 25% of dividend payers in United States of America (3.76%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:CAKE Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below
United States of America Hospitality Industry Average Dividend Yield Market Cap Weighted Average of 47 Stocks 2.7%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:CAKE Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 1.57 2.00
2020-12-31 1.49 8.00
2019-12-31 1.38 8.00
NasdaqGS:CAKE Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-07 1.320 2.938
2019-05-06 1.320 2.700
2019-05-01 1.320 2.656
2019-03-04 1.320 2.786
2019-02-20 1.320 2.817
2018-11-09 1.320 2.874
2018-10-30 1.320 2.620
2018-08-06 1.320 2.551
2018-07-31 1.320 2.590
2018-02-21 1.160 2.214
2017-08-02 1.160 2.587
2017-05-11 0.960 1.812
2017-05-03 0.960 1.528
2017-03-02 0.960 1.530
2017-02-22 0.960 1.573
2016-11-03 0.960 1.606
2016-10-26 0.960 1.846
2016-08-04 0.960 1.884
2016-07-27 0.960 1.879
2016-05-05 0.800 1.602
2016-04-27 0.800 1.543
2016-02-25 0.800 1.541
2016-02-16 0.800 1.601
2015-11-05 0.800 1.704
2015-10-26 0.800 1.622
2015-08-06 0.800 1.475
2015-07-22 0.800 1.407
2015-02-11 0.660 1.294
2014-07-23 0.660 1.398
2014-05-09 0.560 1.224
2014-04-23 0.560 1.245
2013-10-23 0.560 1.186
2013-07-24 0.560 1.300
2013-05-10 0.480 1.153
2013-04-24 0.480 1.212
2012-10-24 0.480 1.390
2012-07-25 0.480 1.409

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Cheesecake Factory has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Cheesecake Factory only paid a dividend in the past 7 years.
Current Payout to shareholders
What portion of Cheesecake Factory's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.9x coverage).
X
Income/ dividend checks
We assess Cheesecake Factory's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Cheesecake Factory afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Cheesecake Factory has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Cheesecake Factory's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
David Overton
COMPENSATION $6,267,151
AGE 73
TENURE AS CEO 27.4 years
CEO Bio

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 Cheesecake Factory Incorporated since February 1992. He has been Executive Chairman and Chief Executive Officer of The Cheesecake Factory Restaurants, Inc., a subsidiary of Cheesecake Factory Incorporated since 1992. He serves as the Chairman of The Cheesecake Factory Bakery Inc. Mr. Overton co-founded Oscar and Evelyn Overton in 1972.

CEO Compensation
  • David's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • David's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Cheesecake Factory management team in years:

7.2
Average Tenure
53.5
Average Age
  • The average tenure for the Cheesecake Factory management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

David Overton

TITLE
Chairman & CEO
COMPENSATION
$6M
AGE
73
TENURE
27.4 yrs

David Gordon

TITLE
President
COMPENSATION
$2M
AGE
54
TENURE
6.4 yrs

Matt Clark

TITLE
Executive VP & CFO
COMPENSATION
$2M
AGE
49
TENURE
2 yrs

Scarlett May

TITLE
Executive VP
COMPENSATION
$1M
AGE
53
TENURE
1.2 yrs

Keith Carango

TITLE
President of The Cheesecake Factory Bakery Incorporated
COMPENSATION
$1M
AGE
57
TENURE
1.3 yrs

Cheryl Slomann

TITLE
Chief Accounting Officer
COMPENSATION
$388K
AGE
53
TENURE
14.4 yrs

Shaw Feit

TITLE
Vice President of Investor Relations

Donald Evans

TITLE
Chief Marketing Officer & Senior VP
TENURE
7.9 yrs

Dina Barmasse-Gray

TITLE
Senior Vice President of Human Resources
TENURE
9.4 yrs

Donald Moore

TITLE
Chief Culinary Officer & Executive VP
Board of Directors Tenure

Average tenure and age of the Cheesecake Factory board of directors in years:

8.1
Average Tenure
73
Average Age
  • The tenure for the Cheesecake Factory board of directors is about average.
Board of Directors

Jerome Kransdorf

TITLE
Lead Director
COMPENSATION
$228K
AGE
80
TENURE
7.3 yrs

David Overton

TITLE
Chairman & CEO
COMPENSATION
$6M
AGE
73
TENURE
27.4 yrs

Alex Cappello

TITLE
Independent Director
COMPENSATION
$208K
AGE
63
TENURE
11.4 yrs

David Pittaway

TITLE
Independent Director
COMPENSATION
$210K
AGE
67
TENURE
10.2 yrs

Herb Simon

TITLE
Independent Director
COMPENSATION
$195K
AGE
84
TENURE
8.1 yrs

Larry Mindel

TITLE
Independent Director
COMPENSATION
$195K
AGE
81
TENURE
7.3 yrs

Edie Ames

TITLE
Independent Director
COMPENSATION
$195K
AGE
52
TENURE
2.6 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Cheesecake Factory individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
16. May 19 Buy Laurence Mindel Individual 16. May 19 16. May 19 2,000 $47.50 $95,000
13. May 19 Buy Edie Ames Individual 13. May 19 13. May 19 700 $47.18 $33,026
07. May 19 Buy Laurence Mindel Individual 06. May 19 06. May 19 1,500 $49.64 $74,461
13. Mar 19 Sell Cheryl Slomann Individual 11. Mar 19 11. Mar 19 -1,000 $46.36 $-46,360
12. Mar 19 Buy Alexander Cappello Individual 07. Mar 19 07. Mar 19 126 $46.45 $5,853
04. Mar 19 Sell David Overton Individual 01. Mar 19 01. Mar 19 -103,400 $47.73 $-4,935,696
27. Feb 19 Buy David Pittaway Individual 25. Feb 19 25. Feb 19 200 $47.51 $9,502
27. Feb 19 Buy Edie Ames Individual 25. Feb 19 25. Feb 19 1,000 $46.97 $46,970
29. Aug 18 Sell Cheryl Slomann Individual 27. Aug 18 27. Aug 18 -1,005 $52.95 $-53,206
24. Aug 18 Buy Edie Ames Individual 22. Aug 18 22. Aug 18 500 $52.83 $26,415
X
Management checks
We assess Cheesecake Factory's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Cheesecake Factory has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

A Look At The Fair Value Of The Cheesecake Factory Incorporated (NASDAQ:CAKE)

We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. … Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) estimate 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF ($, Millions) $168.6m $163.0m $160.6m $160.2m $161.2m $163.3m $166.1m $169.4m $173.2m $177.3m Growth Rate Estimate Source Analyst x4 Est @ -3.32% Est @ -1.51% Est @ -0.24% Est @ 0.65% Est @ 1.28% Est @ 1.71% Est @ 2.02% Est @ 2.23% Est @ 2.38% Present Value ($, Millions) Discounted @ 9.97% $153.3 $134.8 $120.7 $109.5 $100.2 $92.3 $85.4 $79.2 $73.6 $68.6 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= $1.0b The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … NasdaqGS:CAKE Intrinsic value, July 15th 2019 Important assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St -

How Good Is The Cheesecake Factory Incorporated (NASDAQ:CAKE) At Creating Shareholder Value?

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Cheesecake Factory: 0.083 = US$135m ÷ (US$2.1b - US$447m) (Based on the trailing twelve months to April 2019.) Therefore, Cheesecake Factory has an ROCE of 8.3%. … Cheesecake Factory's Current Liabilities And Their Impact On Its ROCE Current liabilities are short term bills and invoices that need to be paid in 12 months or less. … Due to the way the ROCE equation works, having large bills due in the near term can make it look as though a company has less capital employed, and thus a higher ROCE than usual.

Simply Wall St -

Is The Cheesecake Factory Incorporated's (NASDAQ:CAKE) CEO Overpaid Relative To Its Peers?

Check out our latest analysis for Cheesecake Factory How Does David Overton's Compensation Compare With Similar Sized Companies? … Thus we can conclude that David Overton receives more in total compensation than the median of a group of companies in the same market, and of similar size to The Cheesecake Factory Incorporated. … We compared the total CEO remuneration paid by The Cheesecake Factory Incorporated, and compared it to remuneration at a group of similar sized companies.

Simply Wall St -

If You Had Bought Cheesecake Factory (NASDAQ:CAKE) Stock A Year Ago, You'd Be Sitting On A 13% Loss, Today

Unfortunately the The Cheesecake Factory Incorporated (NASDAQ:CAKE) share price slid 13% over twelve months. … We do note, however, that the broader market is down 4.2% in that period, and this may have weighed on the share price. … We note that for Cheesecake Factory the TSR over the last year was -10%, which is better than the share price return mentioned above.

Simply Wall St -

Is The Cheesecake Factory Incorporated (NASDAQ:CAKE) A Smart Pick For Income Investors?

Could The Cheesecake Factory Incorporated (NASDAQ:CAKE) be an attractive dividend share to own for the long haul? … Investors might not know much about Cheesecake Factory's dividend prospects, even though it has been paying dividends for the last seven years and offers a 2.8% yield. … Cheesecake Factory has been paying a dividend for the past seven years.

Simply Wall St -

Have Insiders Been Selling The Cheesecake Factory Incorporated (NASDAQ:CAKE) Shares This Year?

So shareholders might well want to know whether insiders have been buying or selling shares in The Cheesecake Factory Incorporated (NASDAQ:CAKE). … While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. … Over the last year we saw more insider selling of Cheesecake Factory shares, than buying

Simply Wall St -

The Cheesecake Factory Incorporated (NASDAQ:CAKE): Is It A Smart Long Term Opportunity?

In January 2019, The Cheesecake Factory Incorporated (NASDAQ:CAKE) announced its earnings update. … with profits predicted to increase by 19% next year … the past 5-year average growth rate of 5.4%

Simply Wall St -

Does The Cheesecake Factory Incorporated's (NASDAQ:CAKE) P/E Ratio Signal A Buying Opportunity?

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … To keep it practical, we'll show how The Cheesecake Factory Incorporated's (NASDAQ:CAKE) P/E ratio could help you assess the value on offer. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

What Should Investors Know About The Cheesecake Factory Incorporated's (NASDAQ:CAKE) Long Term Outlook?

The Cheesecake Factory Incorporated's (NASDAQ:CAKE) most recent earnings update in January 2019a … indicated

Simply Wall St -

Does The Cheesecake Factory Incorporated's (NASDAQ:CAKE) CEO Salary Reflect Performance?

How Does David Overton's Compensation Compare With Similar Sized Companies. … According to our data, The Cheesecake Factory Incorporated has a market capitalization of US$2.0b, and pays its CEO total annual compensation worth US$5.1m. … We think total compensation is more important but we note that the CEO salary is lower, at US$995k

Simply Wall St -

Company Info

Description

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 April 16, 2019, it owned and operated 219 full-service casual-dining restaurants in the United States, including Puerto Rico and Canada comprising 202 restaurants under The Cheesecake Factory name; 14 restaurants under the Grand Lux Café name; and 2 restaurants under the RockSugar Southeast Asian Kitchen name, as well as 22 The Cheesecake Factory restaurants under licensing agreements internationally. The company was founded in 1972 and is headquartered in Calabasas, California.

Details
Name: The Cheesecake Factory Incorporated
CAKE
Exchange: NasdaqGS
Founded: 1972
$1,995,094,175
45,209,476
Website: http://www.thecheesecakefactory.com
Address: The Cheesecake Factory Incorporated
26901 Malibu Hills Road,
Calabasas Hills,
Calabasas,
California, 91301,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS CAKE Common Stock Nasdaq Global Select US USD 18. Sep 1992
DB CF2 Common Stock Deutsche Boerse AG DE EUR 18. Sep 1992
Number of employees
Current staff
Staff numbers
38,700
Cheesecake Factory employees.
Industry
Restaurants
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/18 23:36
End of day share price update: 2019/07/18 00:00
Last estimates confirmation: 2019/07/18
Last earnings filing: 2019/05/06
Last earnings reported: 2019/04/02
Last annual earnings reported: 2019/01/01


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.