Cheesecake Factory Inc

Consumer Discretionary
Restaurants
www.thecheesecakefactory.com

Earnings Score
Moat Score
Safety Score

Market Cap $2.34B
PE 18
Debt $471.56M
Cash $52.22M
EV $2.76B
FCF $70.03M

Earnings

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Sales & Net Margins

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Earnings	$128.31M
EBIT	$139.82M
ROE	32%
ROA	5%
FCF	$70.03M
Equity	$396.38M
Growth Stability	-217%
PE	18.2
PEG	1.06
PB	5.89
P/FCF	33.36
P/S	0.66
Price/Cash	0.02
Debt/Equity	1.19
Debt/FCF	6.73
Net Margins	4%
Op. Margins	4%
Earnings CAGR	-5%
Sales Growth YoY	4%
Sales Growth QoQ	-4%
Sales CAGR	6%
FCF CAGR	-11%
Equity CAGR	-8%
Earnings Stability	0.12
Earnings Growth YoY	67%
Earnings Growth QoQ	-43%
Earnings CAGR 5Y	17%

Sales CAGR 5Y	13%
FCF CAGR 5Y	12%
Equity CAGR 5Y	-3%
Earnings CAGR 3Y	6%
Sales CAGR 3Y	6%
FCF CAGR 3Y	-23%
Equity CAGR 3Y	3%
Market Cap	$2.34B
Revenue	$3.54B
Dividend Yield	2%
Payout Ratio	41%
Assets	$2.94B
Total Debt	$471.56M
Cash	$52.22M
Shares Outstanding	47.73M
EV	2.76B
Earnings Score	5%
Moat Score	77%
Safety Score	48%
Final Score	43%
Working Capital	-365.36M
Current Ratio	0.44
Shares Growth 3y	-1%
Equity Growth QoQ	6%
Equity Growth YoY	23%

Assets & ROA

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Stockholders Equity & ROE

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Cheesecake Factory owns and operates restaurants in the United States and Canada under brands that include The Cheesecake Factory, North Italia, and a collection within the Fox Restaurants Concepts subsidiary. The company's international presence, in the Middle East and Mexico, is through licensing agreements with third parties. The company also has a bakery division that produces cheesecakes and other baked products for sale in its restaurants, international licensees, and third-party bakery customers. The company has four operating business segments: The Cheesecake Factory restaurants, North Italia, other FRC, and Flower Child. Most of the company's revenue comes from The Cheesecake Factory restaurants segment.

SEC Filings

Direct access to Cheesecake Factory Inc (CAKE) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Oct 01
- 10-Q Jul 02
- 10-Q Apr 02
- 10-K Jan 02
2023
- 10-Q Oct 03
- 10-Q Jul 04
- 10-Q Apr 04
- 10-K Jan 03
2022
- 10-Q Sep 27
- 10-Q Jun 28
- 10-Q Mar 29

Sector Comparison

How does Cheesecake Factory Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Cheesecake Factory Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR -5%

Stability 12%

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Cheesecake Factory Inc Discounted Cash Flow

Fully customizable DCF calculator online for Cheesecake Factory Inc.

Years

Calculation mode

= $340M

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$70M	$62M	$55M	$49M	$43M	$39M	$34M	$30M	$27M	$24M	$21M	$212M
DCF		$56M	$46M	$37M	$30M	$24M	$19M	$16M	$13M	$10M	$8.2M	$82M
Value	$340M

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	01/2017	01/2018	12/2018	12/2019	12/2020	12/2021	01/2023	01/2024	TTM
Net Margins	5%	6%	6%	7%	4%	5%	-14%	2%	1%	3%	4%
ROA	-	13%	16%	11%	9%	5%	-13%	3%	1%	4%	5%
ROE	-	20%	23%	26%	17%	22%	-96%	15%	15%	32%	32%

Bad Net Margins (4.35%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	01/2017	01/2018	12/2018	12/2019	12/2020	12/2021	01/2023	01/2024	TTM
Debt over FCF	-	-	-	0.08	0.05	2	-5.9	3.19	9.46	7.03	6.73
Debt over Equity	-	-	-	0.02	0.02	0.51	0.97	1.41	1.6	1.48	1.19
Growth Stability	-	-	-	100%	72%	96%	-217%	-	-	-	-217%

Bad Debt/FCF ratio (6.73)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Neutral Debt/Equity ratio (1.19)

The company has a balance between equity and debt that is not too good nor too bad.

Bad Graham’s Stability (-217%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	01/2017	01/2018	12/2018	12/2019	12/2020	12/2021	01/2023	01/2024	CAGR 5Y
Revenue YoY growth	-	6%	8%	-1%	3%	6%	-20%	48%	13%	4%	13%
Earnings YoY growth	-	15%	20%	13%	-37%	29%	-318%	-118%	-12%	135%	17%
Equity YoY growth	-	6%	2%	2%	-7%	0%	-50%	14%	-12%	9%	-3%
FCF YoY growth	-	-25%	114%	-41%	60%	-23%	-133%	-408%	-66%	35%	12%