CAKE

Cheesecake FactoryNasdaqGS:CAKE Stock Report

Market Cap

US$2.3b

7D

-3.9%

1Y

57.9%

Updated

20 Sep, 2021

Data

Company Financials +
CAKE fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance0/6
Financial Health2/6
Dividends0/6

CAKE Overview

The Cheesecake Factory Incorporated operates restaurants.

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: CAKE is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: CAKE's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

-3.9%

CAKE

-1.9%

US Hospitality

-2.5%

US Market


1 Year Return

57.9%

CAKE

34.8%

US Hospitality

33.0%

US Market

Return vs Industry: CAKE exceeded the US Hospitality industry which returned 31.3% over the past year.

Return vs Market: CAKE exceeded the US Market which returned 33.8% over the past year.


Shareholder returns

CAKEIndustryMarket
7 Day-3.9%-1.9%-2.5%
30 Day4.1%7.0%-0.9%
90 Day-17.5%-2.7%0.8%
1 Year57.9%57.9%35.4%34.8%35.0%33.0%
3 Year-11.9%-16.2%6.0%2.3%57.6%47.9%
5 Year-7.0%-15.3%44.4%34.9%120.8%96.7%

Long-Term 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

Cheesecake Factory Fundamentals Summary

How do Cheesecake Factory's earnings and revenue compare to its market cap?
CAKE fundamental statistics
Market CapUS$2.35b
Earnings (TTM)-US$54.65m
Revenue (TTM)US$2.47b

0.9x

P/S Ratio

-42.0x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CAKE income statement (TTM)
RevenueUS$2.47b
Cost of RevenueUS$1.46b
Gross ProfitUS$1.01b
ExpensesUS$1.06b
Earnings-US$54.65m

Last Reported Earnings

Jun 29, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-1.23
Gross Margin40.88%
Net Profit Margin-2.21%
Debt/Equity Ratio163.4%

How did CAKE perform over the long term?

See historical performance and comparison

Valuation

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

28.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CAKE ($44) is trading below our estimate of fair value ($61.2)

Significantly Below Fair Value: CAKE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CAKE is unprofitable, so we can't compare its PE Ratio to the US Hospitality industry average.

PE vs Market: CAKE is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CAKE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CAKE is overvalued based on its PB Ratio (8.1x) compared to the US Hospitality industry average (3.5x).


Future Growth

How is Cheesecake Factory forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

29.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CAKE is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: CAKE is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CAKE's is expected to become profitable in the next 3 years.

Revenue vs Market: CAKE's revenue (7.7% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: CAKE's revenue (7.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CAKE's Return on Equity is forecast to be high in 3 years time (38.2%)


Past Performance

How has Cheesecake Factory performed over the past 5 years?

-50.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CAKE is currently unprofitable.

Growing Profit Margin: CAKE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CAKE is unprofitable, and losses have increased over the past 5 years at a rate of 50.7% per year.

Accelerating Growth: Unable to compare CAKE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CAKE is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (95.3%).


Return on Equity

High ROE: CAKE has a negative Return on Equity (-8.11%), as it is currently unprofitable.


Financial Health

How is Cheesecake Factory's financial position?


Financial Position Analysis

Short Term Liabilities: CAKE's short term assets ($328.3M) do not cover its short term liabilities ($597.2M).

Long Term Liabilities: CAKE's short term assets ($328.3M) do not cover its long term liabilities ($1.8B).


Debt to Equity History and Analysis

Debt Level: CAKE's debt to equity ratio (163.4%) is considered high.

Reducing Debt: CAKE's debt to equity ratio has increased from 15.4% to 163.4% over the past 5 years.

Debt Coverage: CAKE's debt is well covered by operating cash flow (36.3%).

Interest Coverage: CAKE's interest payments on its debt are well covered by EBIT (3.3x coverage).


Balance Sheet


Dividend

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

1.40%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate CAKE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CAKE's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CAKE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CAKE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: CAKE is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CAKE's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

9.3yrs

Average management tenure


CEO

David Overton (75 yo)

29.58yrs

Tenure

US$5,914,037

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 ($USD5.91M) is above average for companies of similar size in the US market ($USD3.69M).

Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: CAKE's management team is seasoned and experienced (9.3 years average tenure).


Board Members

Experienced Board: CAKE's board of directors are considered experienced (9.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CAKE insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 14.8%.


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: CAKE
  • Exchange: NasdaqGS
  • Founded: 1972
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: US$2.349b
  • Shares outstanding: 52.18m
  • 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


Biography

The Cheesecake Factory Incorporated operates restaurants. The company produces cheesecakes and other baked products for its restaurants, international licensees, and third-party bakery customers, as well a...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/20 22:29
End of Day Share Price2021/09/20 00:00
Earnings2021/06/29
Annual Earnings2020/12/29


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.