CHEESECAKE FACTORY INC/THE (CAKE) Fundamental Analysis & Valuation

NASDAQ:CAKE • US1630721017

63.465 USD
-0.07 (-0.12%)
Last: Mar 4, 2026, 01:30 PM
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This CAKE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

5

Overall CAKE gets a fundamental rating of 5 out of 10. We evaluated CAKE against 125 industry peers in the Hotels, Restaurants & Leisure industry. There are concerns on the financial health of CAKE while its profitability can be described as average. CAKE has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

6

1. CAKE Profitability Analysis

1.1 Basic Checks

  • CAKE had positive earnings in the past year.
  • In the past year CAKE had a positive cash flow from operations.
  • In the past 5 years CAKE has always been 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 2025 0 100M -100M 200M -200M 300M

1.2 Ratios

  • Looking at the Return On Assets, with a value of 4.96%, CAKE is in the better half of the industry, outperforming 68.80% of the companies in the same industry.
  • With an excellent Return On Equity value of 37.81%, CAKE belongs to the best of the industry, outperforming 88.00% of the companies in the same industry.
  • CAKE has a better Return On Invested Capital (8.08%) than 64.00% of its industry peers.
Industry RankSector Rank
ROA 4.96%
ROE 37.81%
ROIC 8.08%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
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 2025 0 20 -20 -40

1.3 Margins

  • CAKE has a Profit Margin of 4.33%. This is comparable to the rest of the industry: CAKE outperforms 55.20% of its industry peers.
  • In the last couple of years the Profit Margin of CAKE has grown nicely.
  • Looking at the Operating Margin, with a value of 5.89%, CAKE is doing worse than 61.60% of the companies in the same industry.
  • CAKE's Operating Margin has improved in the last couple of years.
  • With an excellent Gross Margin value of 78.13%, CAKE belongs to the best of the industry, outperforming 91.20% of the companies in the same industry.
  • In the last couple of years the Gross Margin of CAKE has remained more or less at the same level.
Industry RankSector Rank
OM 5.89%
PM (TTM) 4.33%
GM 78.13%
OM growth 3Y33.21%
OM growth 5YN/A
PM growth 3Y44.74%
PM growth 5YN/A
GM growth 3Y1.26%
GM growth 5Y0.34%
CAKE Yearly Profit, Operating, Gross MarginsCAKE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40 60

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3

2. CAKE Health Analysis

2.1 Basic Checks

  • CAKE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • CAKE has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the 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

  • CAKE has an Altman-Z score of 2.52. 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's Altman-Z score of 2.52 is fine compared to the rest of the industry. CAKE outperforms 69.60% 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 78.40% 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 in line with its industry peers.
Industry RankSector Rank
Debt/Equity 1.32
Debt/FCF 3.97
Altman-Z 2.52
ROIC/WACC1.02
WACC7.91%
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

  • CAKE has a Current 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 Current ratio of 0.55 is on the low side compared to the rest of the industry. CAKE is outperformed by 77.60% 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.
  • Looking at the Quick ratio, with a value of 0.47, CAKE is doing worse than 77.60% of the companies in the same industry.
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

5

3. CAKE Growth Analysis

3.1 Past

  • CAKE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.59%, which is quite good.
  • 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.
  • CAKE shows a small growth in Revenue. In the last year, the Revenue has grown by 4.75%.
  • Measured over the past years, CAKE shows a quite strong growth in Revenue. The Revenue has been growing by 13.60% on average per year.
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

  • CAKE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.30% yearly.
  • Based on estimates for the next years, CAKE will show a small growth in Revenue. The Revenue will grow by 4.64% on average per year.
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

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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.
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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5

4. CAKE Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 16.83, which indicates a correct valuation of CAKE.
  • Based on the Price/Earnings ratio, CAKE is valued a bit cheaper than 70.40% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of CAKE to the average of the S&P500 Index (26.83), we can say CAKE is valued slightly cheaper.
  • Based on the Price/Forward Earnings ratio of 15.51, the valuation of CAKE can be described as correct.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of CAKE indicates a somewhat cheap valuation: CAKE is cheaper than 72.00% of the companies listed in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 24.95. CAKE is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 16.83
Fwd PE 15.51
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

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as CAKE.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of CAKE indicates a somewhat cheap valuation: CAKE is cheaper than 71.20% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 19.97
EV/EBITDA 11.09
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 an expensive valuation of the company.
  • The decent profitability rating of CAKE may justify a higher PE 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. CAKE Dividend Analysis

5.1 Amount

  • CAKE has a Yearly Dividend Yield of 1.84%. Purely for dividend investing, there may be better candidates out there.
  • CAKE's Dividend Yield is a higher than the industry average which is at 1.10.
  • CAKE's Dividend Yield is comparable with the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 1.84%

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 2026 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • CAKE pays out 32.74% of its income as dividend. This is a 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 2025 0 100M -100M -200M
CAKE Dividend Payout.CAKE Dividend Payout, showing the Payout Ratio.CAKE Dividend Payout.PayoutRetained Earnings

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CAKE Fundamentals: All Metrics, Ratios and Statistics

CHEESECAKE FACTORY INC/THE

NASDAQ:CAKE (3/4/2026, 1:30:06 PM)

63.465

-0.07 (-0.12%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)02-18
Earnings (Next)04-28
Inst Owners115.59%
Inst Owner Change-36.09%
Ins Owners8.01%
Ins Owner Change26.09%
Market Cap3.16B
Revenue(TTM)3.75B
Net Income(TTM)160.81M
Analysts73.79
Price Target66.36 (4.56%)
Short Float %19.62%
Short Ratio6.53
Dividend
Industry RankSector Rank
Dividend Yield 1.84%
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP32.74%
Div Incr Years0
Div Non Decr Years2
Ex-Date03-04
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)9.2%
PT rev (3m)9.86%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-0.54%
EPS NY rev (1m)0.23%
EPS NY rev (3m)-0.45%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-0.03%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.4%
Valuation
Industry RankSector Rank
PE 16.83
Fwd PE 15.51
P/S 0.85
P/FCF 19.97
P/OCF 9.87
P/B 7.44
P/tB 18.26
EV/EBITDA 11.09
EPS(TTM)3.77
EY5.94%
EPS(NY)4.09
Fwd EY6.45%
FCF(TTM)3.18
FCFY5.01%
OCF(TTM)6.43
OCFY10.13%
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 8.08%
ROICexc 8.76%
ROICexgc 9.85%
OM 5.89%
PM (TTM) 4.33%
GM 78.13%
FCFM 4.27%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
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-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 2.52
F-Score7
WACC7.91%
ROIC/WACC1.02
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
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)4.75%
Revenue growth 3Y4.34%
Revenue growth 5Y13.6%
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 3Y38.99%
EBIT growth 5YN/A
EBIT Next Year60.34%
EBIT Next 3Y23.54%
EBIT Next 5YN/A
FCF growth 1Y132.35%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y32.26%
OCF growth 3YN/A
OCF growth 5YN/A

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 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 16.83 and the Price/Book (PB) ratio is 7.44.


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%.