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 0th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for CAKE, they are:
The company's compound free cash flow growth rate over the past 5.5 years comes in at -0.51%; that's greater than merely 2.51% of US stocks we're applying DCF forecasting to.
The company has produced more trailing twelve month cash flow than merely 3.89% of its sector Consumer Cyclical.
Cheesecake Factory Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -26.27. This coverage rate is greater than that of only 4.51% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Cheesecake Factory Inc? See BALY, BOMN, BURL, GLXZ, and HZN.
The Cheesecake Factory Incorporated (NASDAQ: CAKE) today announced it will release fourth quarter fiscal 2020 financial results after market close on Wednesday, February 17, 2021. The Company will hold a conference call to discuss its results on the same day beginning at 2:00 p.m. Pacific Time. The conference call will be webcast and can be accessed on the Company’s website, investors.thecheesecakefactory.com. A replay of the webcast will be available on the Company’s website through March 19, 2021.
Keeping New Year’s resolutions can be difficult and The Cheesecake Factory® (NASDAQ: CAKE) is making ditching your resolutions extra sweet. On Monday, January 11, guests will be treated to two – yes, two – complimentary slices of any of The Cheesecake Factory’s more than 30 legendary flavors of cheesecake with their online take-out or delivery order of $30 or more by using promo code "TWOSLICES" at checkout*.
Investment Conclusion Although conceptually, we're neutral on The Cheesecake Factory (CAKE), based on the $66/share 1-year Price Target our 10-year Discounted Cash Flow model arrived at, utilizing relatively conservative estimates, our Rating is a Buy. In alternate terms, although the CAKE story has uncertainties, the company is nevertheless undervalued despite...
Poonam A. Arora on Seeking Alpha | December 29, 2020