Financial Comparison: The Cheesecake Factory (CAKE) vs. Its Competitors

The Cheesecake Factory (NASDAQ: CAKE) is one of 56 publicly-traded companies in the “Eating places” industry, but how does it contrast to its rivals? We will compare The Cheesecake Factory to similar businesses based on the strength of its profitability, valuation, earnings, institutional ownership, analyst recommendations, dividends and risk.

Analyst Ratings

How to Become a New Pot Stock Millionaire

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Cheesecake Factory 1 14 3 0 2.11
The Cheesecake Factory Competitors 523 2627 2952 120 2.43

The Cheesecake Factory currently has a consensus price target of $47.88, indicating a potential downside of 8.04%. As a group, “Eating places” companies have a potential upside of 9.77%. Given The Cheesecake Factory’s rivals stronger consensus rating and higher probable upside, analysts clearly believe The Cheesecake Factory has less favorable growth aspects than its rivals.

Volatility & Risk

The Cheesecake Factory has a beta of 0.29, indicating that its stock price is 71% less volatile than the S&P 500. Comparatively, The Cheesecake Factory’s rivals have a beta of 0.55, indicating that their average stock price is 45% less volatile than the S&P 500.

Earnings & Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
The Cheesecake Factory $2.26 billion $157.39 million 20.02
The Cheesecake Factory Competitors $1.91 billion $184.64 million 18.64

The Cheesecake Factory has higher revenue, but lower earnings than its rivals. The 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.

Dividends

The Cheesecake Factory pays an annual dividend of $1.16 per share and has a dividend yield of 2.2%. The Cheesecake Factory pays out 44.6% of its earnings in the form of a dividend. As a group, “Eating places” companies pay a dividend yield of 2.3% and pay out 50.5% of their earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
The Cheesecake Factory 6.96% 20.30% 9.65%
The Cheesecake Factory Competitors 3.91% -3.22% 5.31%

Insider & Institutional Ownership

97.6% of The Cheesecake Factory shares are held by institutional investors. Comparatively, 67.4% of shares of all “Eating places” companies are held by institutional investors. 8.4% of The Cheesecake Factory shares are held by company insiders. Comparatively, 17.1% of shares of all “Eating places” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

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

About The Cheesecake Factory

The Cheesecake Factory Incorporated operates restaurants in the United States. The company produces cheesecakes and other baked products for own restaurants and international licensees, as well as external foodservice operators, retailers, and distributors. As of February 28, 2018, it operated 214 company-owned restaurants, including 199 restaurants under The Cheesecake Factory brand; 13 restaurants under the Grand Lux Cafe brand; and 2 restaurants under the RockSugar Southeast Asian Kitchen brand, as well as 20 The Cheesecake Factory branded restaurants under licensing agreements internationally. The company was founded in 1972 and is headquartered in Calabasas, California.

Receive News & Ratings for The Cheesecake Factory Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for The Cheesecake Factory and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply