Cheesecake Factory
Market Cap
US$2.4b
Last Updated
2021/07/30 01:21 UTC
Data Sources
Company Financials +
Executive Summary
The Cheesecake Factory Incorporated operates restaurants. More Details
Rewards
Risk Analysis
Snowflake Analysis
Reasonable growth potential and slightly overvalued.
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: 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
-8.1%
CAKE
0.09%
US Hospitality
0.8%
US Market
1 Year Return
87.7%
CAKE
49.3%
US Hospitality
37.5%
US Market
Return vs Industry: CAKE exceeded the US Hospitality industry which returned 49.3% over the past year.
Return vs Market: CAKE exceeded the US Market which returned 36.5% over the past year.
Shareholder returns
| CAKE | Industry | Market | |
|---|---|---|---|
| 7 Day | -8.1% | 0.09% | 0.8% |
| 30 Day | -9.0% | -2.5% | 1.0% |
| 90 Day | -23.7% | -10.4% | 3.8% |
| 1 Year | 87.7%87.7% | 50.0%49.3% | 39.7%37.5% |
| 3 Year | 0.7%-4.8% | 5.8%1.5% | 64.4%54.1% |
| 5 Year | 5.1%-4.7% | 55.9%44.5% | 124.9%100.0% |
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
5 hours ago | Simply Wall St
Cheesecake Factory (NASDAQ:CAKE) Shareholders Have Enjoyed A 88% Share Price Gain3 weeks ago | Simply Wall St
Here's What The Cheesecake Factory Incorporated's (NASDAQ:CAKE) Shareholder Ownership Structure Looks Like1 month ago | Simply Wall St
Is There An Opportunity With The Cheesecake Factory Incorporated's (NASDAQ:CAKE) 20% Undervaluation?Valuation
Is Cheesecake Factory undervalued compared to its fair value and its price relative to the market?
31.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CAKE ($47.74) is trading below our estimate of fair value ($69.83)
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 (7x) compared to the US Hospitality industry average (3.6x).
Future Growth
How is Cheesecake Factory forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
28.0%
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 (7.5% per year) is forecast to grow slower than the US market (9.2% per year).
High Growth Revenue: CAKE's revenue (7.5% 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 (29.9%)
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 (10.1%).
Return on Equity
High ROE: CAKE has a negative Return on Equity (-4.35%), 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 ($343.8M) do not cover its short term liabilities ($558.0M).
Long Term Liabilities: CAKE's short term assets ($343.8M) do not cover its long term liabilities ($1.6B).
Debt to Equity History and Analysis
Debt Level: CAKE's debt to equity ratio (52.8%) is considered high.
Reducing Debt: CAKE's debt to equity ratio has increased from 15.4% to 52.8% over the past 5 years.
Debt Coverage: CAKE's debt is well covered by operating cash flow (20.5%).
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?
1.29%
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?
9.1yrs
Average management tenure
CEO
David Overton (75 yo)
29.33yrs
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 (9.1 years average tenure).
Board Members
Experienced Board: CAKE's board of directors are considered experienced (9.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CAKE insiders have only sold shares 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 9.3%.
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$2.372b
- Shares outstanding: 49.68m
- 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/07/30 01:21 |
| End of Day Share Price | 2021/07/29 00:00 |
| Earnings | 2021/06/29 |
| Annual Earnings | 2020/12/29 |
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.