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:
We started the process of determining a valid price forecast for Cheesecake Factory Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Cheesecake Factory Inc ranked in the 68th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 152.5%. As for the metrics that stood out in our discounted cash flow analysis of Cheesecake Factory Inc, consider:
39% of the company's capital comes from equity, which is greater than just 21.4% of stocks in our cash flow based forecasting set.
Cheesecake Factory Inc's weighted average cost of capital (WACC) is 5%; for context, that number is higher than just 1.32% of tickers in our DCF set.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than only 0% of stocks in its sector (Consumer Cyclical).
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 CPRI, FWONA, WRK, HAS, and LDL.
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States across the U.S. are beginning to reopen parts of their economies, and a surprising number of consumers are willing to visit restaurants as soon as they reopen, according to a new survey by Piper Sandler.
Cheesecake Factory Inc (NASDAQ: CAKE) has no catalyst or recovery ahead given its overexposure to malls, according to Stephens.The Cheesecake Factory AnalystJames Rutherford resumes coverage of Cheesecake Factory's stock with an Underweight rating and $14 price target.The Cheesecake Factory ThesisAmong the 206 Cheesecake Factory locations across the U.S., 65% are located in traditional regional or super-regional malls, Rutherford wrote in the note. Unfortunately, many of these malls are likely to suffer declining foot traffic as major department stores and movie theatres face "an existential crisis."The restaurant chain's struggles didn't start with the COVID-19 pandemic as the past five years have been challenging. Most notably, the company has failed to show a single quarter of positi...