The Cheesecake Factory Incorporated (CAKE) Company Bio
Cheesecake Factory operates full-service and casual dining restaurants. The company also produces cheesecakes and other baked products for foodservice operators, retailers, and distributors. The company was founded in 1972 and is based in Calabasas Hills, California.
CAKE Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for CAKE, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Cheesecake Factory Inc ranked in the 3th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Cheesecake Factory Inc ended up being:
The company's debt burden, as measured by earnings divided by interest payments, is -30.21 -- which is good for besting only 6.01% of its peer stocks (US stocks in the Consumer Cyclical sector with positive cash flow).
The company's compound free cash flow growth rate over the past 5.43 years comes in at -0.26%; that's greater than merely 5.34% of US stocks we're applying DCF forecasting to.
45% of the company's capital comes from equity, which is greater than merely 22.84% of stocks in our cash flow based forecasting set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as CAKE, try AGS, GPS, KMX, MOD, and BOMN.
Some people ask the secret of our long marriage. We take time to go to a restaurant two times a week. A little candlelight, dinner, soft music and dancing. She goes Tuesdays, I go Fridays. − Henny Youngman We all know that The Cheesecake Factory (CAKE) is an iconic and...
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ServiceMaster will sell its cleaning business to Roark Capital, an Atlanta investment fund, for about $1.6 billion. It adds another brand-name franchise business to Roark's portfolio, which includes Arby's and Cheesecake Factory.