Cheesecake Factory (CAKE) AI Stock Analysis

• Market Cap: $3.11B
• Dividend Yield: 1.67%
• Average Volume (3M): 1.56M
• Price to Earnings (P/E): 19.2
• Beta (1Y): 0.85
• Revenue Growth: 4.77%
• EPS Growth: 38.24%
• Country: US
• Employees: 47,900
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Restaurants
• EPS (TTM): 1.16
• Shares Outstanding: 49,810,430
• 10 Day Avg. Volume: 1,756,368
• 30 Day Avg. Volume: 1,561,838
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.61
• Enterprise Value/Revenue: 1.39
• Enterprise Value/Gross Profit: 3.74
• Enterprise Value/Ebitda: 17.74
• 1Y Price Target: $66.53
• Price Target Upside: 4.99% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 16

• Rating: 77 Outperform
• Price Target: $75.00 ▲(18.35% Upside)

The overall stock score is driven by strong financial performance and bullish technical indicators. The company's strategic growth through new restaurant openings and robust cash flows support its financial stability. Although the high debt levels pose some risk, the positive earnings call sentiment and fair valuation further solidify its position.

Positive Factors

Earnings

The Cheesecake Factory's second-quarter adjusted EPS beat implied guidance and consensus estimates on better-than-expected sales growth.

Market Performance

The stock has performed better than many restaurant stocks during recent market challenges, showing resilience.

Operational Efficiency

Margins are in good shape with record labor retention, driving operational execution.

Negative Factors

Financial Outlook

The 2025 outlook was trimmed to the lower end due to macroeconomic uncertainty.

Market Risks

Risks include intense competition in a contracting casual dining market, inflationary labor cost pressures, and the margin impact associated with third-party delivery providers.

Sales Guidance

Management is reducing sales guidance by about 1% due to potential uncertainty.

Cheesecake Factory Business Overview & Revenue Model

Company Description

The Cheesecake Factory Incorporated (CAKE) is a renowned American restaurant chain and manufacturer of cheesecakes, recognized for its extensive menu featuring over 250 dishes, including appetizers, salads, pizzas, pasta, seafood, and more. Established in 1978, the company operates more than 200 locations across the United States and internationally, providing a casual dining experience with a focus on quality ingredients and exceptional service. In addition to its signature cheesecakes, the company also offers a variety of desserts and beverages, catering to a broad customer base that values diverse dining options.

How the Company Makes Money

The Cheesecake Factory primarily generates revenue through its restaurant operations, which include dine-in, takeout, and delivery services. The company's revenue model is heavily reliant on food and beverage sales in its restaurants, complemented by the sale of its branded cheesecakes through retail partnerships and its own bakery operations. Key revenue streams include dining services, dessert sales, and wholesale distribution of its cheesecakes to grocery stores and other food service entities. Significant partnerships with grocery chains and the growth of its takeout and delivery services have further contributed to its earnings, alongside expanding its brand presence in the food retail market.

Cheesecake Factory Financial Statement Overview

Summary

The Cheesecake Factory demonstrates solid financial performance with strong revenue growth and improved operational margins. While the high leverage poses some risk, the company maintains healthy cash flows, supporting its strategic initiatives and financial stability.

Income Statement

The Cheesecake Factory has shown consistent revenue growth with a notable increase from $3.43 billion in 2024 to $3.61 billion in TTM (Trailing-Twelve-Months). Gross profit margins are robust, reflecting efficient cost management. However, net profit margins remain moderate due to industry pressures. EBIT and EBITDA margins have shown improvement, indicating enhanced operational efficiency.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio, typical in the restaurant industry, posing a potential risk. However, the company has maintained positive equity, and return on equity is moderate, suggesting reasonable returns for shareholders. The equity ratio is on the lower side, indicating a reliance on debt financing.

Cash Flow

Cash flow is strong with consistent operating cash flow generation. The free cash flow has shown growth, enhancing financial flexibility. The operating cash flow to net income ratio is healthy, indicating efficient cash conversion. The company's ability to generate free cash flow supports ongoing operations and potential debt reduction.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.62B	3.58B	3.44B	3.30B	2.93B	1.98B
Gross Profit	1.34B	2.78B	1.41B	1.28B	1.20B	746.31M
EBITDA	282.73M	282.90M	202.90M	174.47M	208.52M	-255.92M
Net Income	156.53M	156.78M	101.35M	43.12M	72.37M	-253.37M
Balance Sheet
Total Assets	3.11B	3.04B	2.84B	2.78B	2.80B	2.75B
Cash, Cash Equivalents and Short-Term Investments	135.41M	84.18M	56.29M	114.78M	189.63M	154.09M
Total Debt	2.10B	1.91B	1.86B	1.84B	1.82B	1.64B
Total Liabilities	2.77B	2.60B	2.52B	2.48B	2.47B	2.24B
Stockholders Equity	339.40M	443.45M	318.06M	292.00M	330.17M	506.94M
Cash Flow
Free Cash Flow	113.76M	107.96M	65.18M	48.78M	145.46M	-48.01M
Operating Cash Flow	280.50M	268.32M	218.40M	161.93M	213.01M	2.91M
Investing Cash Flow	-167.09M	-161.10M	-153.50M	-112.81M	-68.61M	-50.91M
Financing Cash Flow	-37.81M	-78.79M	-123.53M	-123.64M	-108.83M	143.69M

Cheesecake Factory Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 63.37
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CAKE, the sentiment is Positive. The current price of 63.37 is below the 20-day moving average (MA) of 63.55, above the 50-day MA of 61.85, and above the 200-day MA of 52.56, indicating a neutral trend. The MACD of 0.17 indicates Positive momentum. The RSI at 52.37 is Neutral, neither overbought nor oversold. The STOCH value of 62.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CAKE.

Cheesecake Factory Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAKE	77 Outperform	$3.11B	19.19	41.01%	1.67%	4.77%	38.24%
EAT	71 Outperform	$6.88B	18.94	186.74%	―	21.95%	146.44%
FWRG	68 Neutral	$1.09B	273.09	0.69%	―	14.53%	-83.26%
SHAK	66 Neutral	$4.71B	232.85	4.16%	―	13.13%	-25.05%
CBRL	63 Neutral	$1.33B	23.24	12.90%	1.60%	2.84%	-4.44%
Sector *	61 Neutral	$17.22B	11.49	-5.97%	3.08%	1.37%	-15.54%
WEN	60 Neutral	$1.93B	10.55	99.35%	8.44%	1.31%	-1.46%

Cheesecake Factory Corporate Events

Cheesecake Factory Reports Q2 2025 Financial Results

On July 29, 2025, The Cheesecake Factory reported its financial results for the second quarter of fiscal 2025, revealing total revenues of $955.8 million, a rise from $904.0 million in the same quarter of fiscal 2024. The company achieved a net income of $54.8 million, with comparable restaurant sales increasing by 1.2% year-over-year. The company opened eight new restaurants during the quarter and plans to open up to 25 new locations by the end of the year. The Board declared a quarterly dividend of $0.27 per share, to be paid on August 26, 2025.

The most recent analyst rating on (CAKE) stock is a Buy with a $49.00 price target. To see the full list of analyst forecasts on Cheesecake Factory stock, see the CAKE Stock Forecast page.

Cheesecake Factory Stockholders Approve Stock Incentive Amendment

On May 22, 2025, The Cheesecake Factory‘s stockholders approved the Second Amendment to the Stock Incentive Plan during the annual stockholders’ meeting. The meeting also included the election of directors, ratification of the independent accounting firm, and a non-binding advisory vote on executive compensation, reflecting ongoing governance and operational adjustments.

The most recent analyst rating on (CAKE) stock is a Buy with a $49.00 price target. To see the full list of analyst forecasts on Cheesecake Factory stock, see the CAKE Stock Forecast page.