CHEESECAKE FACTORY INC/THE (CAKE) Stock Fundamental Analysis

NASDAQ:CAKE • US1630721017

63.54 USD
+1.12 (+1.79%)
At close: Feb 20, 2026
63 USD
-0.54 (-0.85%)
After Hours: 2/20/2026, 8:20:21 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

4

Overall CAKE gets a fundamental rating of 4 out of 10. We evaluated CAKE against 126 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.


Dividend Valuation Growth Profitability Health

5

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.
  • Of the past 5 years CAKE 4 years had a positive operating cash flow.
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

  • With a decent Return On Assets value of 4.96%, CAKE is doing good in the industry, outperforming 66.67% of the companies in the same industry.
  • CAKE has a better Return On Equity (37.81%) than 87.30% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 6.99%, CAKE is in line with its industry, outperforming 57.94% 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 10.58%.
  • 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

  • The Profit Margin of CAKE (4.33%) is comparable to the rest of the industry.
  • CAKE's Profit Margin has declined in the last couple of years.
  • With a Operating Margin value of 5.89%, CAKE is not doing good in the industry: 61.11% of the companies in the same industry are doing better.
  • CAKE's Operating Margin has been stable in the last couple of years.
  • The Gross Margin of CAKE (78.13%) is better than 91.27% of its industry peers.
  • 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.
  • There is no outstanding debt for CAKE. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
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 2.51 indicates that CAKE is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • CAKE has a better Altman-Z score (2.51) than 65.08% 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.
  • Looking at the Debt to FCF ratio, with a value of 3.97, CAKE is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
  • CAKE has a Debt/Equity ratio of 1.32. This is a high value indicating a heavy dependency on external financing.
  • CAKE has a Debt to Equity ratio of 1.32. This is comparable to the rest of the industry: CAKE outperforms 53.17% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.32
Debt/FCF 3.97
Altman-Z 2.51
ROIC/WACC0.89
WACC7.89%
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.
  • Looking at the Current ratio, with a value of 0.55, CAKE is doing worse than 76.98% of the companies in the same industry.
  • 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.
  • The Quick ratio of CAKE (0.47) is worse than 78.57% 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 9.59% over the past year.
  • CAKE shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 35.36% yearly.
EPS 1Y (TTM)9.59%
EPS 3Y35.36%
EPS 5YN/A
EPS Q2Q%-3.85%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
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 10.30% 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 Y8.56%
EPS Next 2Y9.81%
EPS Next 3Y10.3%
EPS Next 5YN/A
Revenue Next Year4.67%
Revenue Next 2Y5.67%
Revenue Next 3Y5.46%
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.
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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4

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 16.85, which indicates a correct valuation of CAKE.
  • Based on the Price/Earnings ratio, CAKE is valued a bit cheaper than 73.81% of the companies in the same industry.
  • CAKE is valuated rather cheaply when we compare the Price/Earnings ratio to 26.99, which is the current average of the S&P500 Index.
  • CAKE is valuated correctly with a Price/Forward Earnings ratio of 15.52.
  • Based on the Price/Forward Earnings ratio, CAKE is valued a bit cheaper than the industry average as 73.81% of the companies are valued more expensively.
  • CAKE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 28.06, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 16.85
Fwd PE 15.52
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

  • CAKE's Enterprise Value to EBITDA ratio is in line with the industry average.
  • CAKE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CAKE is cheaper than 72.22% of the companies in the same industry.
Industry RankSector Rank
P/FCF 20
EV/EBITDA 10.91
CAKE Per share dataCAKE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

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.
PEG (NY)1.97
PEG (5Y)N/A
EPS Next 2Y9.81%
EPS Next 3Y10.3%

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

4

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 1.92%, CAKE has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 1.09, CAKE pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.81, CAKE has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 1.92%

5.2 History

  • CAKE has paid a dividend for at least 10 years, which is 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
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 2Y9.81%
EPS Next 3Y10.3%
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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CHEESECAKE FACTORY INC/THE

NASDAQ:CAKE (2/20/2026, 8:20:21 PM)

After market: 63 -0.54 (-0.85%)

63.54

+1.12 (+1.79%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)02-18
Earnings (Next)04-28
Inst Owners115.59%
Inst Owner Change-1.34%
Ins Owners8.01%
Ins Owner Change24.32%
Market Cap3.17B
Revenue(TTM)N/A
Net Income(TTM)160.81M
Analysts73.79
Price Target61.48 (-3.24%)
Short Float %20.64%
Short Ratio7.95
Dividend
Industry RankSector Rank
Dividend Yield 1.92%
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)2.07%
PT rev (3m)-5.64%
EPS NQ rev (1m)-0.1%
EPS NQ rev (3m)-0.49%
EPS NY rev (1m)0%
EPS NY rev (3m)0.01%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-0.01%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.13%
Valuation
Industry RankSector Rank
PE 16.85
Fwd PE 15.52
P/S 0.85
P/FCF 20
P/OCF 9.88
P/B 7.45
P/tB 18.28
EV/EBITDA 10.91
EPS(TTM)3.77
EY5.93%
EPS(NY)4.09
Fwd EY6.44%
FCF(TTM)3.18
FCFY5%
OCF(TTM)6.43
OCFY10.12%
SpS74.46
BVpS8.53
TBVpS3.48
PEG (NY)1.97
PEG (5Y)N/A
Graham Number26.91
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 2.51
F-Score7
WACC7.89%
ROIC/WACC0.89
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)9.59%
EPS 3Y35.36%
EPS 5YN/A
EPS Q2Q%-3.85%
EPS Next Y8.56%
EPS Next 2Y9.81%
EPS Next 3Y10.3%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%4.41%
Revenue Next Year4.67%
Revenue Next 2Y5.67%
Revenue Next 3Y5.46%
Revenue Next 5Y4.64%
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 4 / 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 5 / 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 16.85 and the Price/Book (PB) ratio is 7.45.


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%.