Cheesecake Factory (CAKE) and Its Competitors Financial Survey

Cheesecake Factory (NASDAQ: CAKE) is one of 102 public companies in the “FOOD/DRUG-RTL/WHL” industry, but how does it compare to its rivals? We will compare Cheesecake Factory to similar companies based on the strength of its analyst recommendations, profitability, earnings, dividends, institutional ownership, valuation and risk.

Volatility and Risk

Cheesecake Factory has a beta of 0.37, indicating that its share price is 63% less volatile than the S&P 500. Comparatively, Cheesecake Factory’s rivals have a beta of 0.71, indicating that their average share price is 29% less volatile than the S&P 500.

Earnings & Valuation

This table compares Cheesecake Factory and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Cheesecake Factory $2.26 billion $157.39 million 14.54
Cheesecake Factory Competitors $15.81 billion $438.54 million -0.39

Cheesecake Factory’s rivals have higher revenue and earnings than Cheesecake Factory. Cheesecake Factory is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of current ratings and price targets for Cheesecake Factory and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cheesecake Factory 1 14 3 0 2.11
Cheesecake Factory Competitors 925 4672 5485 244 2.45

Cheesecake Factory currently has a consensus target price of $47.88, indicating a potential upside of 0.05%. As a group, “FOOD/DRUG-RTL/WHL” companies have a potential upside of 10.17%. Given Cheesecake Factory’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Cheesecake Factory has less favorable growth aspects than its rivals.

Institutional & Insider Ownership

97.6% of Cheesecake Factory shares are owned by institutional investors. Comparatively, 64.5% of shares of all “FOOD/DRUG-RTL/WHL” companies are owned by institutional investors. 8.4% of Cheesecake Factory shares are owned by insiders. Comparatively, 19.2% of shares of all “FOOD/DRUG-RTL/WHL” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.


This table compares Cheesecake Factory and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cheesecake Factory 6.96% 20.30% 9.65%
Cheesecake Factory Competitors 1.56% -4.13% 5.26%


Cheesecake Factory pays an annual dividend of $1.16 per share and has a dividend yield of 2.4%. Cheesecake Factory pays out 35.3% of its earnings in the form of a dividend. As a group, “FOOD/DRUG-RTL/WHL” companies pay a dividend yield of 2.3% and pay out 62.7% of their earnings in the form of a dividend. Cheesecake Factory is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.


Cheesecake Factory rivals beat Cheesecake Factory on 8 of the 15 factors compared.

Cheesecake Factory Company Profile

The Cheesecake Factory Incorporated is engaged in the restaurant and bakery business. As of March 2, 2017, the Company operated 208 Company-owned restaurants: 194 under The Cheesecake Factory mark, 13 under the Grand Lux Cafe mark and one under the Rock Sugar Pan Asian Kitchen mark. The Company’s segments include The Cheesecake Factory restaurants, and other. It also operates bakery production facilities, which produce desserts for its restaurants, international licensees and third-party bakery customers. Its restaurants offer lunch and dinner, as well as Sunday brunch. Its restaurants also offer a bar. As of January 3, 2017, its menu consisted of over 200 items in addition to items presented on supplemental menus, such as its SkinnyLicious menu, which offers approximately 50 items. Its Grand Lux Cafe is a casual dining concept that offers artisan cuisine. It offers appetizers, seafood and steaks.

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