Is Cheesecake Factory Stock a Good Investment?
Cheesecake Factory Investment Advice | CAKE |
- Examine Cheesecake Factory's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Cheesecake Factory's leadership team and their track record. Good management can help Cheesecake Factory navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Hotels, Restaurants & Leisure space and any emerging trends that could impact Cheesecake Factory's business and its evolving consumer preferences.
- Compare Cheesecake Factory's performance and market position to its competitors. Analyze how Cheesecake Factory is positioned in terms of product offerings, innovation, and market share.
- Check if Cheesecake Factory pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Cheesecake Factory's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in The Cheesecake Factory stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if The Cheesecake Factory is a good investment.
Sell | Buy |
Buy
Market Performance | Good | Details | |
Volatility | Very steady | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Almost mirrors the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Cheesecake Factory Stock
Researching Cheesecake Factory's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 92.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 2.73. The Cheesecake Factory last dividend was issued on the 13th of November 2024. The entity had 3:2 split on the 9th of December 2004.
To determine if Cheesecake Factory is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Cheesecake Factory's research are outlined below:
| The Cheesecake Factory currently holds 1.86 B in liabilities with Debt to Equity (D/E) ratio of 5.0, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. The Cheesecake Factory has a current ratio of 0.62, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Note, when we think about Cheesecake Factory's use of debt, we should always consider it together with its cash and equity. | |
| Over 92.0% of Cheesecake Factory shares are held by institutions such as insurance companies | |
| On 26th of November 2024 Cheesecake Factory paid $ 0.27 per share dividend to its current shareholders | |
| Latest headline from finance.yahoo.com: Why Is Starbucks Up 3.9 percent Since Last Earnings Report |
Cheesecake Factory Quarterly Accounts Payable |
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Cheesecake Factory uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in The Cheesecake Factory. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Cheesecake Factory's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 28th of February 2024 Upcoming Quarterly Report | View | |
| 8th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 28th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Cheesecake Factory's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Cheesecake Factory's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2001-04-19 | 2001-01-31 | 0.1 | 0.11 | 0.01 | 10 | ||
2000-10-26 | 2000-07-31 | 0.1 | 0.11 | 0.01 | 10 | ||
2000-07-25 | 2000-04-30 | 0.1 | 0.11 | 0.01 | 10 | ||
2000-04-25 | 2000-01-31 | 0.07 | 0.08 | 0.01 | 14 | ||
1997-04-24 | 1997-01-31 | 0.04 | 0.03 | -0.01 | 25 | ||
2002-01-31 | 2001-10-31 | 0.13 | 0.15 | 0.02 | 15 | ||
2013-04-24 | 2013-01-31 | 0.42 | 0.47 | 0.05 | 11 | ||
2009-10-22 | 2009-07-31 | 0.24 | 0.29 | 0.05 | 20 |
Know Cheesecake Factory's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Cheesecake Factory is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading The Cheesecake Factory backward and forwards among themselves. Cheesecake Factory's institutional investor refers to the entity that pools money to purchase Cheesecake Factory's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Geode Capital Management, Llc | 2024-09-30 | 1.1 M | Frontier Capital Management Co Inc | 2024-09-30 | 909.2 K | Bank Of New York Mellon Corp | 2024-06-30 | 858.8 K | Ameriprise Financial Inc | 2024-06-30 | 742.5 K | Goldman Sachs Group Inc | 2024-06-30 | 707.6 K | William Blair Investment Management, Llc | 2024-09-30 | 662.4 K | Palisade Capital Management Llc | 2024-09-30 | 617.7 K | Charles Schwab Investment Management Inc | 2024-09-30 | 597.9 K | Woodline Partners Lp | 2024-06-30 | 534.7 K | Blackrock Inc | 2024-06-30 | 7.3 M | Vanguard Group Inc | 2024-09-30 | 5.4 M |
Cheesecake Factory's market capitalization trends
The company currently falls under 'Mid-Cap' category with a current market capitalization of 2.58 B.Market Cap |
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Cheesecake Factory's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.04 | 0.05 | |
| Return On Capital Employed | 0.05 | 0.07 | |
| Return On Assets | 0.04 | 0.04 | |
| Return On Equity | 0.32 | 0.22 |
Determining Cheesecake Factory's profitability involves analyzing its financial statements and using various financial metrics to determine if Cheesecake Factory is a good buy. For example, gross profit margin measures Cheesecake Factory's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Cheesecake Factory's profitability and make more informed investment decisions.
Please note, the presentation of Cheesecake Factory's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Cheesecake Factory's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Cheesecake Factory's management manipulating its earnings.
Evaluate Cheesecake Factory's management efficiency
The Cheesecake Factory has return on total asset (ROA) of 0.0388 % which means that it generated a profit of $0.0388 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.3574 %, meaning that it created $0.3574 on every $100 dollars invested by stockholders. Cheesecake Factory's management efficiency ratios could be used to measure how well Cheesecake Factory manages its routine affairs as well as how well it operates its assets and liabilities. At present, Cheesecake Factory's Return On Capital Employed is projected to slightly decrease based on the last few years of reporting. The current year's Return On Assets is expected to grow to 0.04, whereas Return On Equity is forecasted to decline to 0.22. At present, Cheesecake Factory's Non Currrent Assets Other are projected to increase significantly based on the last few years of reporting. The current year's Other Assets is expected to grow to about 146 M, whereas Other Current Assets are forecasted to decline to about 35.6 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 6.58 | 13.01 | |
| Tangible Book Value Per Share | 1.37 | 3.06 | |
| Enterprise Value Over EBITDA | 17.07 | 14.14 | |
| Price Book Value Ratio | 5.22 | 2.99 | |
| Enterprise Value Multiple | 17.07 | 14.14 | |
| Price Fair Value | 5.22 | 2.99 | |
| Enterprise Value | 200.1 M | 190.1 M |
Understanding the management dynamics of The Cheesecake Factory allows us to gauge its ability to sustain growth and profitability. This comprehensive analysis aids in determining the stock's value.
Dividend Yield 0.0213 | Forward Dividend Yield 0.0213 | Forward Dividend Rate 1.08 | Beta 1.481 |
Basic technical analysis of Cheesecake Stock
As of the 30th of November, Cheesecake Factory shows the Semi Deviation of 1.63, mean deviation of 1.76, and Risk Adjusted Performance of 0.1378. The Cheesecake Factory technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Please confirm The Cheesecake Factory downside deviation, treynor ratio, expected short fall, as well as the relationship between the variance and potential upside to decide if The Cheesecake Factory is priced correctly, providing market reflects its regular price of 50.64 per share. Given that Cheesecake Factory has jensen alpha of 0.2441, we suggest you to validate The Cheesecake Factory's prevailing market performance to make sure the company can sustain itself at a future point.Cheesecake Factory's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Cheesecake Factory insiders, such as employees or executives, is commonly permitted as long as it does not rely on Cheesecake Factory's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Cheesecake Factory insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Keith Carango over three months ago Acquisition by Keith Carango of 3060 shares of Cheesecake Factory subject to Rule 16b-3 | ||
David Gordon over six months ago Acquisition by David Gordon of 7638 shares of Cheesecake Factory subject to Rule 16b-3 |
Cheesecake Factory's Outstanding Corporate Bonds
Cheesecake Factory issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. The Cheesecake Factory uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Cheesecake bonds can be classified according to their maturity, which is the date when The Cheesecake Factory has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| US163072AA98 Corp BondUS163072AA98 | View | |
| SOLEIN 7125 01 OCT 27 Corp BondUS16308NAA28 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View |
Understand Cheesecake Factory's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Cheesecake Factory's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.1378 | |||
| Market Risk Adjusted Performance | 0.3536 | |||
| Mean Deviation | 1.76 | |||
| Semi Deviation | 1.63 | |||
| Downside Deviation | 1.9 | |||
| Coefficient Of Variation | 583.18 | |||
| Standard Deviation | 2.32 | |||
| Variance | 5.4 | |||
| Information Ratio | 0.1122 | |||
| Jensen Alpha | 0.2441 | |||
| Total Risk Alpha | 6.0E-4 | |||
| Sortino Ratio | 0.1373 | |||
| Treynor Ratio | 0.3436 | |||
| Maximum Drawdown | 13.08 | |||
| Value At Risk | (3.10) | |||
| Potential Upside | 4.75 | |||
| Downside Variance | 3.61 | |||
| Semi Variance | 2.67 | |||
| Expected Short fall | (2.08) | |||
| Skewness | 0.7527 | |||
| Kurtosis | 2.0 |
| Risk Adjusted Performance | 0.1378 | |||
| Market Risk Adjusted Performance | 0.3536 | |||
| Mean Deviation | 1.76 | |||
| Semi Deviation | 1.63 | |||
| Downside Deviation | 1.9 | |||
| Coefficient Of Variation | 583.18 | |||
| Standard Deviation | 2.32 | |||
| Variance | 5.4 | |||
| Information Ratio | 0.1122 | |||
| Jensen Alpha | 0.2441 | |||
| Total Risk Alpha | 6.0E-4 | |||
| Sortino Ratio | 0.1373 | |||
| Treynor Ratio | 0.3436 | |||
| Maximum Drawdown | 13.08 | |||
| Value At Risk | (3.10) | |||
| Potential Upside | 4.75 | |||
| Downside Variance | 3.61 | |||
| Semi Variance | 2.67 | |||
| Expected Short fall | (2.08) | |||
| Skewness | 0.7527 | |||
| Kurtosis | 2.0 |
Consider Cheesecake Factory's intraday indicators
Cheesecake Factory intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Cheesecake Factory stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 7196.15 | |||
| Daily Balance Of Power | 1.232877 | |||
| Rate Of Daily Change | 1.02 | |||
| Day Median Price | 50.58 | |||
| Day Typical Price | 50.6 | |||
| Price Action Indicator | 0.52 | |||
| Period Momentum Indicator | 0.9 |
Cheesecake Factory Corporate Filings
F4 | 12th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
10Q | 4th of November 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
8K | 29th of October 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
| 18th of April 2024 Other Reports | ViewVerify |
Cheesecake Stock media impact
Far too much social signal, news, headlines, and media speculation about Cheesecake Factory that are available to investors today. That information is available publicly through Cheesecake media outlets and privately through word of mouth or via Cheesecake internal channels. However, regardless of the origin, that massive amount of Cheesecake data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Cheesecake Factory news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Cheesecake Factory relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Cheesecake Factory's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Cheesecake Factory alpha.
Cheesecake Factory Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Cheesecake Factory can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
When determining whether The Cheesecake Factory is a strong investment it is important to analyze Cheesecake Factory's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Cheesecake Factory's future performance. For an informed investment choice regarding Cheesecake Stock, refer to the following important reports: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in The Cheesecake Factory. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in industry. You can also try the Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Is Hotels, Restaurants & Leisure space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Cheesecake Factory. If investors know Cheesecake will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Cheesecake Factory listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.649 | Dividend Share 1.08 | Earnings Share 2.64 | Revenue Per Share 74.077 | Quarterly Revenue Growth 0.042 |
The market value of The Cheesecake Factory is measured differently than its book value, which is the value of Cheesecake that is recorded on the company's balance sheet. Investors also form their own opinion of Cheesecake Factory's value that differs from its market value or its book value, called intrinsic value, which is Cheesecake Factory's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Cheesecake Factory's market value can be influenced by many factors that don't directly affect Cheesecake Factory's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Cheesecake Factory's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Cheesecake Factory is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cheesecake Factory's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.