CHEESECAKE FACTORY INC/THE (CAKE) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:CAKE • US1630721017

62.82 USD
+1 (+1.62%)
At close: Feb 5, 2026
62 USD
-0.82 (-1.31%)
After Hours: 2/5/2026, 8:12:38 PM
Fundamental Rating

4

Taking everything into account, CAKE scores 4 out of 10 in our fundamental rating. CAKE was compared to 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 is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • CAKE had positive earnings in the past year.
  • CAKE had a positive operating cash flow in the past year.
  • Of the past 5 years CAKE 4 years were profitable.
  • CAKE had a positive operating cash flow in each of the past 5 years.
CAKE Yearly Net Income VS EBIT VS OCF VS FCFCAKE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M -100M 200M -200M 300M

1.2 Ratios

  • The Return On Assets of CAKE (4.96%) is better than 67.42% of its industry peers.
  • CAKE has a better Return On Equity (37.81%) than 87.12% of its industry peers.
  • CAKE has a Return On Invested Capital of 6.99%. This is in the better half of the industry: CAKE outperforms 60.61% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for CAKE is significantly below the industry average of 10.39%.
  • The 3 year average ROIC (5.05%) for CAKE is below the current ROIC(6.99%), indicating increased profibility in the last year.
Industry RankSector 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
CAKE Yearly ROA, ROE, ROICCAKE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 -40

1.3 Margins

  • Looking at the Profit Margin, with a value of 4.33%, CAKE is in line with its industry, outperforming 58.33% of the companies in the same industry.
  • In the last couple of years the Profit Margin of CAKE has declined.
  • With a Operating Margin value of 5.89%, CAKE perfoms like the industry average, outperforming 42.42% of the companies in the same industry.
  • CAKE's Operating Margin has been stable in the last couple of years.
  • With an excellent Gross Margin value of 78.13%, CAKE belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
  • CAKE's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
CAKE Yearly Profit, Operating, Gross MarginsCAKE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

3

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CAKE is destroying value.
  • The number of shares outstanding for CAKE has been increased compared to 1 year ago.
  • CAKE has more shares outstanding than it did 5 years ago.
  • CAKE has a better debt/assets ratio than last year.
CAKE Yearly Shares OutstandingCAKE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M 50M
CAKE Yearly Total Debt VS Total AssetsCAKE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

2.2 Solvency

  • An Altman-Z score of 2.50 indicates that CAKE is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • The Altman-Z score of CAKE (2.50) is better than 66.67% of its industry peers.
  • CAKE has a debt to FCF ratio of 3.97. This is a good value and a sign of high solvency as CAKE would need 3.97 years to pay back of all of its debts.
  • CAKE's Debt to FCF ratio of 3.97 is fine compared to the rest of the industry. CAKE outperforms 79.55% of its industry peers.
  • A Debt/Equity ratio of 1.32 is on the high side and indicates that CAKE has dependencies on debt financing.
  • The Debt to Equity ratio of CAKE (1.32) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 1.32
Debt/FCF 3.97
Altman-Z 2.5
ROIC/WACC0.87
WACC8.07%
CAKE Yearly LT Debt VS Equity VS FCFCAKE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M

2.3 Liquidity

  • A Current Ratio of 0.55 indicates that CAKE may have some problems paying its short term obligations.
  • The Current ratio of CAKE (0.55) is worse than 72.73% of its industry peers.
  • CAKE has a Quick Ratio of 0.55. This is a bad value and indicates that CAKE is not financially healthy enough and could expect problems in meeting its short term obligations.
  • CAKE's Quick ratio of 0.47 is on the low side compared to the rest of the industry. CAKE is outperformed by 74.24% of its industry peers.
Industry RankSector Rank
Current Ratio 0.55
Quick Ratio 0.47
CAKE Yearly Current Assets VS Current LiabilitesCAKE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an nice 19.06% over the past year.
  • Measured over the past 5 years, CAKE shows a small growth in Earnings Per Share. The EPS has been growing by 5.68% on average per year.
  • The Revenue has been growing slightly by 4.90% in the past year.
  • Measured over the past years, CAKE shows a small growth in Revenue. The Revenue has been growing by 7.61% on average per year.
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.
  • The Revenue is expected to grow by 4.87% on average over the next years.
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.
CAKE Yearly Revenue VS EstimatesCAKE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1B 2B 3B 4B
CAKE Yearly EPS VS EstimatesCAKE Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 2 4

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Find the best growth stocksShow best growing peers

5

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 16.49, which indicates a correct valuation of CAKE.
  • Compared to the rest of the industry, the Price/Earnings ratio of CAKE indicates a somewhat cheap valuation: CAKE is cheaper than 78.03% of the companies listed in the same industry.
  • CAKE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.67.
  • CAKE is valuated correctly with a Price/Forward Earnings ratio of 15.38.
  • Based on the Price/Forward Earnings ratio, CAKE is valued a bit cheaper than the industry average as 75.76% of the companies are valued more expensively.
  • When comparing the Price/Forward Earnings ratio of CAKE to the average of the S&P500 Index (27.20), we can say CAKE is valued slightly cheaper.
Industry RankSector Rank
PE 16.49
Fwd PE 15.38
CAKE Price Earnings VS Forward Price EarningsCAKE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CAKE is on the same level as its industry peers.
  • 72.73% of the companies in the same industry are more expensive than CAKE, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 19.77
EV/EBITDA 10.82
CAKE Per share dataCAKE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The decent profitability rating of CAKE may justify a higher PE ratio.
PEG (NY)1.45
PEG (5Y)2.9
EPS Next 2Y8.95%
EPS Next 3Y9.7%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. Dividend

5.1 Amount

  • CAKE has a Yearly Dividend Yield of 1.85%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 1.26, CAKE pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.82, CAKE has a dividend comparable with the average S&P500 company.
Industry RankSector 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.
  • The dividend of CAKE decreased in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years2
CAKE Yearly Dividends per shareCAKE Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

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%
CAKE Yearly Income VS Free CF VS DividendCAKE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M -100M -200M
CAKE Dividend Payout.CAKE Dividend Payout, showing the Payout Ratio.CAKE Dividend Payout.PayoutRetained Earnings

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Find the best dividend stocksShow peers with best dividend

CHEESECAKE FACTORY INC/THE

NASDAQ:CAKE (2/5/2026, 8:12:38 PM)

After market: 62 -0.82 (-1.31%)

62.82

+1 (+1.62%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)10-28
Earnings (Next)02-18
Inst Owners115.59%
Inst Owner Change-0.37%
Ins Owners8.01%
Ins Owner Change-1.78%
Market Cap3.13B
Revenue(TTM)3.71B
Net Income(TTM)160.81M
Analysts73.79
Price Target60.77 (-3.26%)
Short Float %22.32%
Short Ratio8.97
Dividend
Industry RankSector Rank
Dividend Yield 1.85%
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP32.74%
Div Incr Years0
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.64%
Min EPS beat(2)6.79%
Max EPS beat(2)10.48%
EPS beat(4)4
Avg EPS beat(4)10.14%
Min EPS beat(4)6.79%
Max EPS beat(4)12.08%
EPS beat(8)8
Avg EPS beat(8)10.57%
EPS beat(12)10
Avg EPS beat(12)6.33%
EPS beat(16)10
Avg EPS beat(16)-5.94%
Revenue beat(2)0
Avg Revenue beat(2)-1.87%
Min Revenue beat(2)-2.56%
Max Revenue beat(2)-1.19%
Revenue beat(4)0
Avg Revenue beat(4)-1.7%
Min Revenue beat(4)-2.56%
Max Revenue beat(4)-1.06%
Revenue beat(8)0
Avg Revenue beat(8)-1.92%
Revenue beat(12)0
Avg Revenue beat(12)-2.31%
Revenue beat(16)0
Avg Revenue beat(16)-2.26%
PT rev (1m)0.89%
PT rev (3m)-6.74%
EPS NQ rev (1m)-0.1%
EPS NQ rev (3m)-9.63%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-0.65%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-2.13%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.7%
Valuation
Industry RankSector Rank
PE 16.49
Fwd PE 15.38
P/S 0.84
P/FCF 19.77
P/OCF 9.77
P/B 7.36
P/tB 18.07
EV/EBITDA 10.82
EPS(TTM)3.81
EY6.06%
EPS(NY)4.08
Fwd EY6.5%
FCF(TTM)3.18
FCFY5.06%
OCF(TTM)6.43
OCFY10.23%
SpS74.46
BVpS8.53
TBVpS3.48
PEG (NY)1.45
PEG (5Y)2.9
Graham Number27.05
Profitability
Industry RankSector Rank
ROA 4.96%
ROE 37.81%
ROCE 8.84%
ROIC 6.99%
ROICexc 7.57%
ROICexgc 8.51%
OM 5.89%
PM (TTM) 4.33%
GM 78.13%
FCFM 4.27%
ROA(3y)3.43%
ROA(5y)0.39%
ROE(3y)27.33%
ROE(5y)8.44%
ROIC(3y)5.05%
ROIC(5y)N/A
ROICexc(3y)5.24%
ROICexc(5y)N/A
ROICexgc(3y)5.93%
ROICexgc(5y)N/A
ROCE(3y)6.39%
ROCE(5y)N/A
ROICexgc growth 3Y10.35%
ROICexgc growth 5Y5.82%
ROICexc growth 3Y11%
ROICexc growth 5Y8.1%
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%
F-Score7
Asset Turnover1.14
Health
Industry RankSector Rank
Debt/Equity 1.32
Debt/FCF 3.97
Debt/EBITDA 1.72
Cap/Depr 151.71%
Cap/Sales 4.37%
Interest Coverage 19.27
Cash Conversion 98.5%
Profit Quality 98.47%
Current Ratio 0.55
Quick Ratio 0.47
Altman-Z 2.5
F-Score7
WACC8.07%
ROIC/WACC0.87
Cap/Depr(3y)148.68%
Cap/Depr(5y)115.39%
Cap/Sales(3y)4.13%
Cap/Sales(5y)3.45%
Profit Quality(3y)81.91%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)19.06%
EPS 3Y17.14%
EPS 5Y5.68%
EPS Q2Q%17.24%
EPS Next Y11.35%
EPS Next 2Y8.95%
EPS Next 3Y9.7%
EPS Next 5Y10.12%
Revenue 1Y (TTM)4.9%
Revenue growth 3Y6.95%
Revenue growth 5Y7.61%
Sales Q2Q%4.82%
Revenue Next Year4.64%
Revenue Next 2Y4.64%
Revenue Next 3Y5.36%
Revenue Next 5Y4.87%
EBIT growth 1Y23.32%
EBIT growth 3Y15.92%
EBIT growth 5Y8.87%
EBIT Next Year77.06%
EBIT Next 3Y27.57%
EBIT Next 5Y21.97%
FCF growth 1Y101.98%
FCF growth 3Y-9.76%
FCF growth 5Y-5.64%
OCF growth 1Y50.06%
OCF growth 3Y8%
OCF growth 5Y4.17%

CHEESECAKE FACTORY INC/THE / CAKE FAQ

What is the fundamental rating for CAKE stock?

ChartMill assigns a fundamental rating of 4 / 10 to CAKE.


What is the valuation status for CAKE stock?

ChartMill assigns a valuation rating of 5 / 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 16.49 and the Price/Book (PB) ratio is 7.36.


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%.