📊 CAKE Key Takeaways
Investment Thesis
Cheesecake Factory demonstrates solid operational efficiency with a 50.7x interest coverage ratio and strong free cash flow generation of $155.1M, indicating financial stability. However, stagnant revenue growth (+0.0% YoY), declining diluted EPS (-4.4% YoY), and weak liquidity metrics (0.59x current ratio) raise concerns about operational momentum and short-term financial flexibility.
CAKE Strengths
- Exceptional interest coverage ratio of 50.7x demonstrates strong ability to service debt obligations
- Robust free cash flow of $155.1M with 4.1% FCF margin provides capital for operations and shareholder returns
- Healthy operating margin of 5.0% and ROE of 34.0% indicate efficient capital utilization and profitability
CAKE Risks
- Revenue growth stagnation at 0.0% YoY suggests mature or challenged market conditions with limited top-line expansion
- Deteriorating current ratio of 0.59x and quick ratio of 0.52x indicate potential liquidity constraints and working capital pressure
- Diluted EPS declining 4.4% YoY despite flat revenue indicates margin compression or share dilution concerns
Key Metrics to Watch
- Revenue growth trajectory and comparable store sales performance
- Trends in operating and net margins to identify cost pressures or pricing power
- Free cash flow sustainability and capital allocation decisions
CAKE Financial Metrics
💡 AI Analyst Insight
The relatively thin 4.1% FCF margin may limit capital allocation flexibility. The current ratio below 1.0x warrants monitoring of short-term liquidity.
CAKE Profitability Ratios
CAKE vs Consumer Sector
How CHEESECAKE FACTORY INC compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CAKE Balance Sheet & Liquidity
CAKE 5-Year Financial Trend
5-Year Trend Summary: CHEESECAKE FACTORY INC's revenue has shown modest growth of 5% over the 5-year period. The most recent EPS of $2.07 reflects profitable operations.
CAKE Growth Metrics (YoY)
CAKE Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $865.5M | $30.0M | $0.61 |
| Q2 2025 | $904.0M | $52.4M | $1.08 |
| Q1 2025 | $891.2M | $32.9M | $0.67 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CAKE Capital Allocation
CAKE SEC Filings
Access official SEC EDGAR filings for CHEESECAKE FACTORY INC (CIK: 0000887596)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Mar 11, 2026 | 4 | xslF345X05/form4-03112026_110314.xml | View → |
| Feb 26, 2026 | 4 | xslF345X05/form4-02262026_100243.xml | View → |
| Feb 26, 2026 | 4 | xslF345X05/form4-02262026_100216.xml | View → |
| Feb 26, 2026 | 4 | xslF345X05/form4-02262026_100202.xml | View → |
| Feb 26, 2026 | 4 | xslF345X05/form4-02262026_100254.xml | View → |
❓ Frequently Asked Questions about CAKE
What is the AI rating for CAKE?
CHEESECAKE FACTORY INC (CAKE) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CAKE's key strengths?
Exceptional interest coverage ratio of 50.7x demonstrates strong ability to service debt obligations. Robust free cash flow of $155.1M with 4.1% FCF margin provides capital for operations and shareholder returns.
What are the risks of investing in CAKE?
Revenue growth stagnation at 0.0% YoY suggests mature or challenged market conditions with limited top-line expansion. Deteriorating current ratio of 0.59x and quick ratio of 0.52x indicate potential liquidity constraints and working capital pressure.
What is CAKE's revenue and growth?
CHEESECAKE FACTORY INC reported revenue of $3.8B.
Does CAKE pay dividends?
CHEESECAKE FACTORY INC pays dividends, with $52.2M distributed to shareholders in the trailing twelve months.
Where can I find CAKE SEC filings?
Official SEC filings for CHEESECAKE FACTORY INC (CIK: 0000887596) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CAKE's EPS?
CHEESECAKE FACTORY INC has a diluted EPS of $3.06.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.