The Cheesecake Factory CAKE
United StatesConsumer Cyclical · RestaurantsUSD
97.43 USD (−8.9%)
14 analysts
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The Cheesecake Factory is a full-service restaurant chain in the United States, known for its extensive menu and cheesecakes, operating under its own brand and others such as North Italia and Flower Child.
Key points
from its scores- ✓Good share-price trend9.8
- ✓Strong growth7.0
- ✕Fragile balance sheet2.4
- ✕Demanding valuation4.8
- !Modest dividend5.5
AI analysis
bottom line, main risk, context and newsGrowth and profitability are attractive, but high debt and a demanding valuation suggest waiting for a better entry point.
The Cheesecake Factory shows solid growth (revenue +7.7%, earnings +23.7%) and exceptional return on equity (ROE 38.8%), but its high leverage (Net Debt/EBITDA 5.31) and demanding valuation (P/E 28.99, EV/EBITDA 20.31) limit the investment appeal despite strong momentum (100.78).
The main risk is the high financial leverage (Net Debt/EBITDA 5.31), which in a rising interest rate environment could pressure debt service and profitability if consumer spending weakens.
Context and risks
No recent relevant news and no material exposure to current macro factors (rates, oil, tariffs) beyond what is already captured by quantitative metrics. The restaurant business is domestic discretionary consumer spending, with high debt (Net Debt/EBITDA 5.31) already penalizing financial health, but no specific regulatory, geopolitical, or business model event justifies an additional adjustment.
Is The Cheesecake Factory stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 72% above the Consumer Cyclical median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 29.0 | 17.8 | +62% |
| EV / EBITDA | 20.3 | 11.2 | +81% |
| Price / book | 10.3 | 2.9 | +257% |
| Price / sales | 1.4 | 1.3 | +9% |
Sector: median of the 228 Consumer Cyclical companies analysed. In bold, the multiples used for the comparison.
Valuation score: 4.8 out of 10 (median for Consumer Cyclical: 6.6).
Average analyst target: 97.43 USD, −8.9% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 6.6 (sector 5.7), Growth 7.0 (sector 5.9).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Consumer Cyclical medianValuation
- P/E
- 29.0
- Forward P/E
- 21.4
- EV / EBITDA
- 20.3
- Price / book
- 10.3
- Price / sales
- 1.4
- PEG
- 1.95
- Market cap
- 5.3B USD
- Enterprise value
- 7.2B USD
Profitability
- ROE
- 38.8%
- ROA
- 4.7%
- ROIC (approx.)
- 11.6%
- Gross margin
- 40.7%
- Operating margin
- 7.8%
- Net margin
- 4.6%
- Free cash flow
- 166.7M USD
- FCF yield
- 3.1%
- Cash conversion
- 47%
Solvency
- Total debt
- 2.1B USD
- Net debt
- 1.9B USD
- Cash
- 195.2M USD
- EBITDA
- 355.0M USD
- Net debt / EBITDA
- 5.31
- Debt / equity
- 401.00
- Current ratio
- 0.59
- Quick ratio
- 0.43
Growth
- Revenue growth
- +7.7%
- Earnings growth
- +23.7%
- EPS (TTM)
- 3.69 USD
- EPS (forward)
- 5.00 USD
Dividend
- Dividend yield
- 1.1%
- Payout
- 30.9%
Risk and market
- Beta
- 1.04
- Analyst consensus
- Hold (14)
- Target price
- 97.43 USD
- 52-week range
- 43.07 – 118.46
Recent news
All CAKE news →Compare it with its sector
All 228 in Consumer Cyclical →Frequently asked questions about The Cheesecake Factory
Is The Cheesecake Factory stock cheap or expensive?
On P/E and EV / EBITDA, it trades 72% above the Consumer Cyclical median on average. Valuation score: 4.8 out of 10 (median for Consumer Cyclical: 6.6). Average analyst target: 97.43 USD, −8.9% versus the price. This is not investment advice.
What score does The Cheesecake Factory get on MeridIAn Screener?
It scores 5.9 out of 10, rank 1,058 of 2,130 (better than 47% of the companies analysed). Its strongest category is Momentum (9.8) and its weakest, Financial health (2.4). Analysis of 08/10/2026.
What is The Cheesecake Factory's P/E ratio?
Its P/E is 29.0: the share price equals 29.0 times earnings per share over the last 12 months. The Consumer Cyclical median is 17.8. Based on the earnings analysts expect, the forward P/E is 21.4.
How much is The Cheesecake Factory worth on the stock market?
Its market capitalisation is 5.3B USD and its enterprise value, debt included, is 7.2B USD.
How much debt does The Cheesecake Factory have?
Its net debt (debt minus cash) is 1.9B USD. That is 5.31 times its EBITDA; the Consumer Cyclical median is 1.91.
Does The Cheesecake Factory pay a dividend?
Yes: its dividend yield is 1.12% and it pays out 31% of its earnings.
How has The Cheesecake Factory stock performed over the last year?
It has risen 109.2% over the last year, excluding dividends. Over the last 52 weeks it has traded between 43.07 and 118.46 USD. Past performance does not guarantee future results.
What do analysts think of The Cheesecake Factory?
14 analysts cover it; their average recommendation is “Hold” and their average target is 97.43 USD (−8.9% versus the price). It is an estimate, not market data.