57.96 USD
-0.55 (-0.93%)
At close: Jan 30, 2026
57.85 USD
-0.11 (-0.19%)
After Hours: 1/30/2026, 8:00:02 PM
Overall CAKE gets a fundamental rating of 5 out of 10. We evaluated CAKE against 132 industry peers in the Hotels, Restaurants & Leisure industry. While CAKE is still in line with the averages on profitability rating, there are concerns on its financial health. CAKE has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year CAKE was profitable.
- In the past year CAKE had a positive cash flow from operations.
- Of the past 5 years CAKE 4 years were profitable.
- Each year in the past 5 years CAKE had a positive operating cash flow.
1.2 Ratios
- With a decent Return On Assets value of 4.96%, CAKE is doing good in the industry, outperforming 67.42% of the companies in the same industry.
- CAKE's Return On Equity of 37.81% is amongst the best of the industry. CAKE outperforms 87.12% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 6.99%, CAKE is in the better half of the industry, outperforming 60.61% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for CAKE is significantly below the industry average of 10.38%.
- The last Return On Invested Capital (6.99%) for CAKE is above the 3 year average (5.05%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.96% | ||
| ROE | 37.81% | ||
| ROIC | 6.99% |
ROA(3y)3.43%
ROA(5y)0.39%
ROE(3y)27.33%
ROE(5y)8.44%
ROIC(3y)5.05%
ROIC(5y)N/A
1.3 Margins
- The Profit Margin of CAKE (4.33%) is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of CAKE has declined.
- CAKE has a Operating Margin (5.89%) which is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of CAKE has remained more or less at the same level.
- CAKE has a Gross Margin of 78.13%. This is amongst the best in the industry. CAKE outperforms 91.67% of its industry peers.
- In the last couple of years the Gross Margin of CAKE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.89% | ||
| PM (TTM) | 4.33% | ||
| GM | 78.13% |
OM growth 3Y8.38%
OM growth 5Y1.18%
PM growth 3Y37.68%
PM growth 5Y-3.11%
GM growth 3Y-0.08%
GM growth 5Y0.03%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CAKE is destroying value.
- Compared to 1 year ago, CAKE has more shares outstanding
- CAKE has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, CAKE has an improved debt to assets ratio.
2.2 Solvency
- CAKE has an Altman-Z score of 2.46. This is not the best score and indicates that CAKE is in the grey zone with still only limited risk for bankruptcy at the moment.
- CAKE has a Altman-Z score of 2.46. This is in the better half of the industry: CAKE outperforms 66.67% of its industry peers.
- The Debt to FCF ratio of CAKE is 3.97, which is a good value as it means it would take CAKE, 3.97 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 3.97, CAKE is doing good in the industry, outperforming 79.55% of the companies in the same industry.
- A Debt/Equity ratio of 1.32 is on the high side and indicates that CAKE has dependencies on debt financing.
- CAKE has a Debt to Equity ratio (1.32) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | 3.97 | ||
| Altman-Z | 2.46 |
ROIC/WACC0.88
WACC7.98%
2.3 Liquidity
- A Current Ratio of 0.55 indicates that CAKE may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.55, CAKE is doing worse than 72.73% of the companies in the same industry.
- A Quick Ratio of 0.47 indicates that CAKE may have some problems paying its short term obligations.
- CAKE has a Quick ratio of 0.47. This is in the lower half of the industry: CAKE underperforms 74.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 19.06% over the past year.
- CAKE shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.68% yearly.
- CAKE shows a small growth in Revenue. In the last year, the Revenue has grown by 4.90%.
- CAKE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.61% yearly.
EPS 1Y (TTM)19.06%
EPS 3Y17.14%
EPS 5Y5.68%
EPS Q2Q%17.24%
Revenue 1Y (TTM)4.9%
Revenue growth 3Y6.95%
Revenue growth 5Y7.61%
Sales Q2Q%4.82%
3.2 Future
- CAKE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.12% yearly.
- CAKE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.87% yearly.
EPS Next Y11.35%
EPS Next 2Y8.95%
EPS Next 3Y9.7%
EPS Next 5Y10.12%
Revenue Next Year4.64%
Revenue Next 2Y4.64%
Revenue Next 3Y5.36%
Revenue Next 5Y4.87%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 15.21, the valuation of CAKE can be described as correct.
- 81.06% of the companies in the same industry are more expensive than CAKE, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 28.32. CAKE is valued slightly cheaper when compared to this.
- CAKE is valuated correctly with a Price/Forward Earnings ratio of 14.19.
- Based on the Price/Forward Earnings ratio, CAKE is valued a bit cheaper than 77.27% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, CAKE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.21 | ||
| Fwd PE | 14.19 |
4.2 Price Multiples
- 62.88% of the companies in the same industry are more expensive than CAKE, based on the Enterprise Value to EBITDA ratio.
- CAKE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CAKE is cheaper than 74.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.24 | ||
| EV/EBITDA | 10.23 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- CAKE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.34
PEG (5Y)2.68
EPS Next 2Y8.95%
EPS Next 3Y9.7%
5. Dividend
5.1 Amount
- CAKE has a Yearly Dividend Yield of 1.85%.
- Compared to an average industry Dividend Yield of 1.25, CAKE pays a bit more dividend than its industry peers.
- CAKE's Dividend Yield is comparable with the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.85% |
5.2 History
- CAKE has been paying a dividend for at least 10 years, so it has a reliable track record.
- CAKE has decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
- 32.74% of the earnings are spent on dividend by CAKE. This is a low number and sustainable payout ratio.
DP32.74%
EPS Next 2Y8.95%
EPS Next 3Y9.7%
CHEESECAKE FACTORY INC/THE / CAKE FAQ
What is the fundamental rating for CAKE stock?
ChartMill assigns a fundamental rating of 5 / 10 to CAKE.
What is the valuation status for CAKE stock?
ChartMill assigns a valuation rating of 6 / 10 to CHEESECAKE FACTORY INC/THE (CAKE). This can be considered as Fairly Valued.
What is the profitability of CAKE stock?
CHEESECAKE FACTORY INC/THE (CAKE) has a profitability rating of 6 / 10.
What is the valuation of CHEESECAKE FACTORY INC/THE based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CHEESECAKE FACTORY INC/THE (CAKE) is 15.21 and the Price/Book (PB) ratio is 6.79.
Can you provide the dividend sustainability for CAKE stock?
The dividend rating of CHEESECAKE FACTORY INC/THE (CAKE) is 4 / 10 and the dividend payout ratio is 32.74%.