Cheesecake Factory
Market Cap
US$1.9b
Last Updated
2021/01/23 00:25 UTC
Data Sources
Company Financials +
Executive Summary
The Cheesecake Factory Incorporated engages in the operation of restaurants. More Details
Rewards
Risk Analysis
Snowflake Analysis
High growth potential with weak fundamentals.
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 +/- 8% a week.
Volatility Over Time: CAKE's weekly volatility (8%) has been stable over the past year.
Market Performance
7 Day Return
2.8%
CAKE
2.6%
US Hospitality
2.3%
US Market
1 Year Return
7.3%
CAKE
-5.5%
US Hospitality
23.7%
US Market
Return vs Industry: CAKE exceeded the US Hospitality industry which returned -5.5% over the past year.
Return vs Market: CAKE underperformed the US Market which returned 23.7% over the past year.
Shareholder returns
| CAKE | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.8% | 2.6% | 2.3% |
| 30 Day | 13.0% | 3.6% | 4.7% |
| 90 Day | 29.5% | 19.6% | 14.5% |
| 1 Year | 8.5%7.3% | -4.4%-5.5% | 26.5%23.7% |
| 3 Year | -9.4%-15.4% | -5.5%-11.1% | 45.0%35.4% |
| 5 Year | -2.5%-12.3% | 58.1%42.1% | 126.2%100.9% |
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
2 months ago | Simply Wall St
Here's What We Learned About The CEO Pay At The Cheesecake Factory Incorporated (NASDAQ:CAKE)3 months ago | Simply Wall St
Should You Think About Buying The Cheesecake Factory Incorporated (NASDAQ:CAKE) Now?3 months ago | Simply Wall St
Cheesecake Factory (NASDAQ:CAKE) Has Debt But No Earnings; Should You Worry?Valuation
Is Cheesecake Factory undervalued compared to its fair value and its price relative to the market?
5.97x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: CAKE ($42.36) is trading above our estimate of fair value ($42.25)
Significantly Below Fair Value: CAKE is trading above our estimate of fair value.
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 (6x) compared to the US Hospitality industry average (3.2x).
Next Steps
Future Growth
How is Cheesecake Factory forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
80.4%
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 (12.4% per year) is forecast to grow faster than the US market (10.6% per year).
High Growth Revenue: CAKE's revenue (12.4% 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 (22.4%)
Next Steps
Past Performance
How has Cheesecake Factory performed over the past 5 years?
-30.1%
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 30.1% 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 (-56.1%).
Return on Equity
High ROE: CAKE has a negative Return on Equity (-32.38%), as it is currently unprofitable.
Next Steps
Financial Health
How is Cheesecake Factory's financial position?
Financial Position Analysis
Short Term Liabilities: CAKE's short term assets ($411.0M) do not cover its short term liabilities ($540.4M).
Long Term Liabilities: CAKE's short term assets ($411.0M) do not cover its long term liabilities ($1.8B).
Debt to Equity History and Analysis
Debt Level: CAKE's debt to equity ratio (70.6%) is considered high.
Reducing Debt: CAKE's debt to equity ratio has increased from 14.7% to 70.6% over the past 5 years.
Debt Coverage: CAKE's debt is not well covered by operating cash flow (18.6%).
Interest Coverage: Insufficient data to determine if CAKE's interest payments on its debt are well covered by EBIT.
Balance Sheet
Next Steps
Dividend
What is Cheesecake Factory current dividend yield, its reliability and sustainability?
1.32%
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?
8.7yrs
Average management tenure
CEO
David Overton (74 yo)
28.92yrs
Tenure
US$6,715,889
Compensation
Mr. David M. Overton Founded Grand Lux Cafe, LLC in 1999. Mr. Overton Co-founded The Cheesecake Factory Incorporated's predecessor company in 1972. He has been Chairman and Chief Executive Officer of Chees...
CEO Compensation Analysis
Compensation vs Market: David's total compensation ($USD6.72M) is above average for companies of similar size in the US market ($USD3.86M).
Compensation vs Earnings: David's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 28.92yrs | US$6.72m | 6.91% $ 133.4m | |
| President | 7.92yrs | US$2.24m | 0.065% $ 1.3m | |
| Executive VP & CFO | 3.5yrs | US$1.82m | 0.034% $ 660.2k | |
| Executive VP | 2.67yrs | US$1.33m | 0.018% $ 338.9k | |
| President of The Cheesecake Factory Bakery Incorporated | 2.75yrs | US$1.08m | 0.055% $ 1.1m | |
| Chief Accounting Officer | 15.92yrs | US$387.59k | 0.066% $ 1.3m | |
| Vice President of Investor Relations | no data | no data | no data | |
| Chief Marketing Officer & Senior VP | 9.42yrs | no data | no data | |
| Senior Vice President of Human Resources | 10.92yrs | no data | no data | |
| Chief Culinary Officer & Executive VP | no data | no data | no data | |
| Senior Vice President of Operations - The Cheesecake Factory Restaurants | no data | no data | no data |
8.7yrs
Average Tenure
54.5yo
Average Age
Experienced Management: CAKE's management team is seasoned and experienced (8.7 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 28.92yrs | US$6.72m | 6.91% $ 133.4m | |
| Independent Director | 11.67yrs | US$220.00k | 0.029% $ 555.9k | |
| Independent Director | 9.58yrs | US$205.00k | 0.43% $ 8.3m | |
| Independent Director | 8.83yrs | US$205.00k | 0.027% $ 529.5k | |
| Independent Lead Director | 8.83yrs | US$237.50k | 0.030% $ 582.4k | |
| Independent Director | 12.92yrs | US$217.50k | 0.011% $ 215.7k | |
| Independent Director | 4.08yrs | US$205.00k | 0.013% $ 251.6k | |
| Independent Director | 0.92yr | no data | 0.012% $ 223.8k | |
| Independent Director | no data | no data | no data |
9.2yrs
Average Tenure
71yo
Average Age
Experienced Board: CAKE's board of directors are considered experienced (9.2 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 been diluted in the past year, with total shares outstanding growing by 2.1%.
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$1.931b
- Shares outstanding: 45.58m
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CAKE | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Sep 1992 |
| CF2 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Sep 1992 |
| CAKE * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Sep 1992 |
Biography
The Cheesecake Factory Incorporated engages in the operation of restaurants. As of February 26, 2020, it owned and operated 294 restaurants in the United States and Canada under the brands of The Cheesecak...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/23 00:25 |
| End of Day Share Price | 2021/01/22 00:00 |
| Earnings | 2020/09/29 |
| Annual Earnings | 2019/12/31 |
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.