CHEESECAKE FACTORY INC/THE (CAKE) Fundamental Analysis & Valuation
NASDAQ:CAKE • US1630721017
62.52 USD
-0.47 (-0.75%)
At close: Mar 10, 2026
62.52 USD
0 (0%)
After Hours: 3/10/2026, 8:09:54 PM
This CAKE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Overall CAKE gets a fundamental rating of 5 out of 10. We evaluated CAKE against 126 industry peers in the Hotels, Restaurants & Leisure industry. CAKE scores excellent on profitability, but there are concerns on its financial health. CAKE has a decent growth rate and is not valued too expensively.
1. CAKE Profitability Analysis
1.1 Basic Checks
- In the past year CAKE was profitable.
- CAKE had a positive operating cash flow in the past year.
- Each year in the past 5 years CAKE has been profitable.
- In the past 5 years CAKE always reported a positive cash flow from operatings.
1.2 Ratios
- CAKE has a Return On Assets of 4.55%. This is in the better half of the industry: CAKE outperforms 65.08% of its industry peers.
- Looking at the Return On Equity, with a value of 34.01%, CAKE belongs to the top of the industry, outperforming 88.10% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 8.27%, CAKE is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
- CAKE had an Average Return On Invested Capital over the past 3 years of 7.39%. This is below the industry average of 10.49%.
- The last Return On Invested Capital (8.27%) for CAKE is above the 3 year average (7.39%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.55% | ||
| ROE | 34.01% | ||
| ROIC | 8.27% |
ROA(3y)4.42%
ROA(5y)3.32%
ROE(3y)33.74%
ROE(5y)26.17%
ROIC(3y)7.39%
ROIC(5y)6.21%
1.3 Margins
- Looking at the Profit Margin, with a value of 3.96%, CAKE is in line with its industry, outperforming 55.56% of the companies in the same industry.
- CAKE's Profit Margin has improved in the last couple of years.
- CAKE has a Operating Margin of 5.99%. This is comparable to the rest of the industry: CAKE outperforms 41.27% of its industry peers.
- CAKE's Operating Margin has improved in the last couple of years.
- The Gross Margin of CAKE (78.33%) is better than 91.27% 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 | 5.99% | ||
| PM (TTM) | 3.96% | ||
| GM | 78.33% |
OM growth 3Y33.21%
OM growth 5YN/A
PM growth 3Y44.74%
PM growth 5YN/A
GM growth 3Y1.26%
GM growth 5Y0.34%
2. CAKE Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CAKE is still creating some value.
- Compared to 1 year ago, CAKE has less shares outstanding
- The number of shares outstanding for CAKE has been increased compared to 5 years ago.
- The debt/assets ratio for CAKE is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.53 indicates that CAKE is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With a decent Altman-Z score value of 2.53, CAKE is doing good in the industry, outperforming 69.05% of the companies in the same industry.
- The Debt to FCF ratio of CAKE is 4.09, which is a neutral value as it means it would take CAKE, 4.09 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 4.09, CAKE is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
- CAKE has a Debt/Equity ratio of 1.29. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 1.29, CAKE perfoms like the industry average, outperforming 53.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 4.09 | ||
| Altman-Z | 2.53 |
ROIC/WACC1.08
WACC7.68%
2.3 Liquidity
- A Current Ratio of 0.59 indicates that CAKE may have some problems paying its short term obligations.
- CAKE has a Current ratio of 0.59. This is in the lower half of the industry: CAKE underperforms 76.98% of its industry peers.
- CAKE has a Quick Ratio of 0.59. This is a bad value and indicates that CAKE is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.52, CAKE is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.52 |
3. CAKE Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an nice 9.59% over the past year.
- Measured over the past years, CAKE shows a very strong growth in Earnings Per Share. The EPS has been growing by 35.36% on average per year.
- The Revenue has been growing slightly by 4.75% in the past year.
- CAKE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.60% yearly.
EPS 1Y (TTM)9.59%
EPS 3Y35.36%
EPS 5YN/A
EPS Q2Q%-3.85%
Revenue 1Y (TTM)4.75%
Revenue growth 3Y4.34%
Revenue growth 5Y13.6%
Sales Q2Q%4.41%
3.2 Future
- Based on estimates for the next years, CAKE will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.23% on average per year.
- CAKE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.64% yearly.
EPS Next Y9.06%
EPS Next 2Y9.4%
EPS Next 3Y10.23%
EPS Next 5YN/A
Revenue Next Year4.43%
Revenue Next 2Y5.51%
Revenue Next 3Y6.07%
Revenue Next 5Y4.64%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. CAKE Valuation Analysis
4.1 Price/Earnings Ratio
- CAKE is valuated correctly with a Price/Earnings ratio of 16.58.
- Compared to the rest of the industry, the Price/Earnings ratio of CAKE indicates a somewhat cheap valuation: CAKE is cheaper than 71.43% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of CAKE to the average of the S&P500 Index (26.25), we can say CAKE is valued slightly cheaper.
- The Price/Forward Earnings ratio is 15.21, which indicates a correct valuation of CAKE.
- Based on the Price/Forward Earnings ratio, CAKE is valued a bit cheaper than the industry average as 72.22% of the companies are valued more expensively.
- CAKE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.58 | ||
| Fwd PE | 15.21 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as CAKE.
- Based on the Price/Free Cash Flow ratio, CAKE is valued a bit cheaper than 69.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.24 | ||
| EV/EBITDA | 10.65 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CAKE does not grow enough to justify the current Price/Earnings ratio.
- The decent profitability rating of CAKE may justify a higher PE ratio.
PEG (NY)1.83
PEG (5Y)N/A
EPS Next 2Y9.4%
EPS Next 3Y10.23%
5. CAKE Dividend Analysis
5.1 Amount
- CAKE has a Yearly Dividend Yield of 1.91%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.10, CAKE pays a bit more dividend than its industry peers.
- CAKE's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
5.2 History
- The dividend of CAKE decreases each year by -0.62%.
- 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)-0.62%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
- CAKE pays out 35.16% of its income as dividend. This is a sustainable payout ratio.
DP35.16%
EPS Next 2Y9.4%
EPS Next 3Y10.23%
CAKE Fundamentals: All Metrics, Ratios and Statistics
62.52
-0.47 (-0.75%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)02-18 2026-02-18/amc
Earnings (Next)04-28 2026-04-28/amc
Inst Owners115.77%
Inst Owner Change-36.1%
Ins Owners8.31%
Ins Owner Change26.09%
Market Cap3.12B
Revenue(TTM)3.75B
Net Income(TTM)148.43M
Analysts71.72
Price Target66.36 (6.14%)
Short Float %19.62%
Short Ratio6.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
Yearly Dividend1.03
Dividend Growth(5Y)-0.62%
DP35.16%
Div Incr Years0
Div Non Decr Years2
Ex-Date03-04 2026-03-04 (0.3)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.72%
Min EPS beat(2)-1.04%
Max EPS beat(2)10.48%
EPS beat(4)3
Avg EPS beat(4)7.08%
Min EPS beat(4)-1.04%
Max EPS beat(4)12.08%
EPS beat(8)7
Avg EPS beat(8)9.52%
EPS beat(12)10
Avg EPS beat(12)6.6%
EPS beat(16)10
Avg EPS beat(16)-4.96%
Revenue beat(2)0
Avg Revenue beat(2)-1.64%
Min Revenue beat(2)-2.56%
Max Revenue beat(2)-0.72%
Revenue beat(4)0
Avg Revenue beat(4)-1.61%
Min Revenue beat(4)-2.56%
Max Revenue beat(4)-0.72%
Revenue beat(8)0
Avg Revenue beat(8)-1.74%
Revenue beat(12)0
Avg Revenue beat(12)-2.12%
Revenue beat(16)0
Avg Revenue beat(16)-2.21%
PT rev (1m)7.93%
PT rev (3m)9.86%
EPS NQ rev (1m)-0.65%
EPS NQ rev (3m)-0.93%
EPS NY rev (1m)0.46%
EPS NY rev (3m)0.5%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.1%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)-0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.58 | ||
| Fwd PE | 15.21 | ||
| P/S | 0.83 | ||
| P/FCF | 20.24 | ||
| P/OCF | 10.35 | ||
| P/B | 7.14 | ||
| P/tB | 16.88 | ||
| EV/EBITDA | 10.65 |
EPS(TTM)3.77
EY6.03%
EPS(NY)4.11
Fwd EY6.58%
FCF(TTM)3.09
FCFY4.94%
OCF(TTM)6.04
OCFY9.66%
SpS75.25
BVpS8.75
TBVpS3.7
PEG (NY)1.83
PEG (5Y)N/A
Graham Number27.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.55% | ||
| ROE | 34.01% | ||
| ROCE | 9.04% | ||
| ROIC | 8.27% | ||
| ROICexc | 9.05% | ||
| ROICexgc | 10.18% | ||
| OM | 5.99% | ||
| PM (TTM) | 3.96% | ||
| GM | 78.33% | ||
| FCFM | 4.11% |
ROA(3y)4.42%
ROA(5y)3.32%
ROE(3y)33.74%
ROE(5y)26.17%
ROIC(3y)7.39%
ROIC(5y)6.21%
ROICexc(3y)7.8%
ROICexc(5y)6.6%
ROICexgc(3y)8.8%
ROICexgc(5y)7.48%
ROCE(3y)8.08%
ROCE(5y)6.8%
ROICexgc growth 3Y32.61%
ROICexgc growth 5YN/A
ROICexc growth 3Y33.35%
ROICexc growth 5YN/A
OM growth 3Y33.21%
OM growth 5YN/A
PM growth 3Y44.74%
PM growth 5YN/A
GM growth 3Y1.26%
GM growth 5Y0.34%
F-Score6
Asset Turnover1.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 4.09 | ||
| Debt/EBITDA | 1.68 | ||
| Cap/Depr | 135.06% | ||
| Cap/Sales | 3.93% | ||
| Interest Coverage | 25.88 | ||
| Cash Conversion | 90.27% | ||
| Profit Quality | 103.77% | ||
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 2.53 |
F-Score6
WACC7.68%
ROIC/WACC1.08
Cap/Depr(3y)152.9%
Cap/Depr(5y)131.27%
Cap/Sales(3y)4.3%
Cap/Sales(5y)3.72%
Profit Quality(3y)78.76%
Profit Quality(5y)129.17%
High Growth Momentum
Growth
EPS 1Y (TTM)9.59%
EPS 3Y35.36%
EPS 5YN/A
EPS Q2Q%-3.85%
EPS Next Y9.06%
EPS Next 2Y9.4%
EPS Next 3Y10.23%
EPS Next 5YN/A
Revenue 1Y (TTM)4.75%
Revenue growth 3Y4.34%
Revenue growth 5Y13.6%
Sales Q2Q%4.41%
Revenue Next Year4.43%
Revenue Next 2Y5.51%
Revenue Next 3Y6.07%
Revenue Next 5Y4.64%
EBIT growth 1Y15.6%
EBIT growth 3Y38.99%
EBIT growth 5YN/A
EBIT Next Year60.08%
EBIT Next 3Y23.54%
EBIT Next 5YN/A
FCF growth 1Y44.07%
FCF growth 3Y46.69%
FCF growth 5YN/A
OCF growth 1Y12.28%
OCF growth 3Y23%
OCF growth 5Y153.11%
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 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 7 / 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 16.58 and the Price/Book (PB) ratio is 7.14.
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 35.16%.