Operates full-service dining restaurants under The Cheesecake Factory brand. Operates restaurants under the North Italia brand. Now — the numbers.
That much dependence is a risk in itself: if this one line weakens, the whole company feels it directly.
This is an established company with proven profits.
The gap is $3.2B. In times of high interest rates, a gap like that can squeeze a company.
The market pays 34.4× for every dollar this company earns in a year — a price that already assumes things go well.
Against companies in its own sector, it looks cheaper than 27% of them.
Analysts' average target sits 21% below today's price.
We compared this company with its own sector across five subjects.
A score of 50 means class average.
Clearly above the class average — a step short of the very top.
Clearly below the class average.
Clearly below the class average.
This grade is a blend: the profit side is strong, the sales tempo slow.
The stock has been running stronger than the market lately.
Valuation: The stock trades at a price that looks expensive next to its earnings; that can cap future returns.
Financial Strength: The cash-and-debt balance is thin; the buffer for hard times is slim.
The stock trades below its recent peak — about 12% off the top. A pullback, not a collapse.
It met or beat analyst expectations in 8 of the last 8 quarters — consistency is a promise kept.
It pays out $1.17 per share each year — regular cash for whoever holds the stock.
The company’s market value is 34 times its annual profit. Even a small disappointment could hit the price hard.
The stock trades 21% above the average analyst price target.
On our five-subject report card, CAKE sits in the middle of the class: some subjects shine, others don’t. The grade moves as the numbers move.
The takeaway: CAKE is an established business that has proven its profits for years. The real debate isn’t the quality of the business — it’s whether the price paid for the stock is too high.
The total grade weighs these five subjects against the sector — it isn’t a simple average of the five.