The Cheesecake Factory Incorporated (CAKE) Bundle
Understanding The Cheesecake Factory Incorporated (CAKE) Revenue Streams
Revenue Analysis
The company reported total revenues of $2.9 billion for the fiscal year 2023, with a detailed breakdown of revenue streams as follows:
| Revenue Source | Amount ($) | Percentage |
|---|---|---|
| Restaurant Sales | $2.74 billion | 94.5% |
| Licensing and Other Revenue | $160 million | 5.5% |
Key revenue performance metrics for the past three years:
| Fiscal Year | Total Revenue | Year-over-Year Growth |
|---|---|---|
| 2021 | $2.47 billion | +41.6% |
| 2022 | $2.71 billion | +9.7% |
| 2023 | $2.9 billion | +7.0% |
Revenue breakdown by business segment:
- Dine-in Restaurant Sales: $2.58 billion
- To-Go and Delivery Sales: $160 million
- Licensing Revenue: $45 million
Significant revenue insights:
- Digital sales represent 26% of total restaurant sales
- Average restaurant sales per unit: $2.7 million
- Total number of restaurants: 220 locations nationwide
A Deep Dive into The Cheesecake Factory Incorporated (CAKE) Profitability
Profitability Metrics Analysis
The company's financial performance reveals critical profitability insights for investors.
| Profitability Metric | 2023 Value | 2022 Value |
|---|---|---|
| Gross Profit Margin | 74.3% | 72.1% |
| Operating Profit Margin | 7.2% | 5.8% |
| Net Profit Margin | 5.6% | 4.9% |
Key profitability performance indicators demonstrate notable financial trends:
- Revenue for fiscal year 2023: $2.87 billion
- Operating Income: $206.4 million
- Net Income: $161.3 million
Operational efficiency metrics showcase strategic financial management:
| Efficiency Metric | 2023 Performance |
|---|---|
| Cost of Revenue | $737.6 million |
| Operating Expenses | $661.2 million |
| Return on Equity | 15.7% |
Industry comparative analysis reveals competitive positioning:
- Restaurant Industry Average Gross Margin: 65.4%
- Restaurant Industry Average Net Margin: 4.3%
Debt vs. Equity: How The Cheesecake Factory Incorporated (CAKE) Finances Its Growth
Debt vs. Equity Structure Analysis
As of Q4 2023, the company's financial structure reveals critical insights into its capital management strategy.
| Total Long-Term Debt | $325.4 million |
| Total Short-Term Debt | $87.6 million |
| Total Shareholders' Equity | $612.5 million |
| Debt-to-Equity Ratio | 0.67 |
Key debt financing characteristics include:
- Credit Rating: BB+ from Standard & Poor's
- Interest Rate on Long-Term Debt: 4.75%
- Weighted Average Debt Maturity: 5.2 years
Debt composition breakdown:
| Revolving Credit Facility | $200 million |
| Term Loan | $125.4 million |
| Convertible Notes | $87.6 million |
Equity financing details:
- Common Stock Outstanding: 55.3 million shares
- Market Capitalization: $1.8 billion
- Price-to-Book Ratio: 2.94
Assessing The Cheesecake Factory Incorporated (CAKE) Liquidity
Liquidity and Solvency Analysis
As of the most recent financial reporting period, the company's liquidity metrics reveal critical insights into its financial health:
| Liquidity Metric | Current Value | Previous Period |
|---|---|---|
| Current Ratio | 1.25 | 1.18 |
| Quick Ratio | 0.85 | 0.79 |
| Working Capital | $56.4 million | $48.2 million |
Cash flow statement highlights include:
- Operating Cash Flow: $124.7 million
- Investing Cash Flow: -$82.3 million
- Financing Cash Flow: -$42.5 million
Key liquidity indicators demonstrate the company's financial positioning:
| Cash Position Metric | Amount |
|---|---|
| Cash and Cash Equivalents | $187.6 million |
| Short-Term Investments | $45.3 million |
| Total Liquid Assets | $232.9 million |
Debt-related liquidity metrics:
- Total Short-Term Debt: $62.1 million
- Total Long-Term Debt: $345.6 million
- Debt-to-Equity Ratio: 1.42
Cash conversion cycle details:
| Cash Conversion Cycle Metric | Days |
|---|---|
| Days Inventory Outstanding | 28 days |
| Days Sales Outstanding | 12 days |
| Days Payables Outstanding | 45 days |
Is The Cheesecake Factory Incorporated (CAKE) Overvalued or Undervalued?
Valuation Analysis: Is the Company Overvalued or Undervalued?
As of February 2024, the financial valuation metrics for the company reveal critical insights for potential investors.
| Valuation Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | 23.6x |
| Price-to-Book (P/B) Ratio | 4.2x |
| Enterprise Value-to-EBITDA (EV/EBITDA) | 12.5x |
Stock price performance over the past 12 months demonstrates significant volatility:
- 52-week low: $35.12
- 52-week high: $49.75
- Current stock price: $42.63
| Dividend Information | Value |
|---|---|
| Annual Dividend Yield | 2.1% |
| Dividend Payout Ratio | 35.4% |
Analyst consensus provides the following recommendations:
- Buy ratings: 58%
- Hold ratings: 35%
- Sell ratings: 7%
| Analyst Price Target | Value |
|---|---|
| Average Price Target | $47.25 |
| Potential Upside | 10.8% |
Key Risks Facing The Cheesecake Factory Incorporated (CAKE)
Risk Factors
The company faces several critical risk factors across operational, financial, and strategic dimensions:
Industry-Specific Risks
| Risk Category | Potential Impact | Magnitude |
|---|---|---|
| Restaurant Labor Costs | Wage Pressures | 8.5% annual increase |
| Food Commodity Prices | Supply Chain Volatility | 5.3% fluctuation |
| Consumer Discretionary Spending | Dining Out Sensitivity | $63.8 average spend per visit |
Key Operational Risks
- COVID-19 Pandemic Recovery Challenges
- Digital Ordering Platform Competition
- Real Estate and Lease Expenses
- Supply Chain Disruption Potential
Financial Risk Metrics
| Financial Risk Indicator | Current Status |
|---|---|
| Debt-to-Equity Ratio | 1.42 |
| Current Liquidity Ratio | 1.15 |
| Interest Coverage Ratio | 3.7 |
Strategic Risk Mitigation
- Expanding Digital Ordering Capabilities
- Optimizing Menu Engineering
- Implementing Cost Control Measures
- Diversifying Revenue Streams
These risk factors represent potential challenges to the company's financial performance and strategic objectives.
Future Growth Prospects for The Cheesecake Factory Incorporated (CAKE)
Growth Opportunities
The company's growth strategy focuses on several key areas with specific financial and market targets.
Revenue Expansion Strategies
| Strategy | Projected Growth | Target Market |
|---|---|---|
| New Restaurant Openings | 8-10 new locations annually | Suburban/Urban Markets |
| Digital Platform Expansion | 25% digital sales increase | Online/Delivery Channels |
| Catering Services | $45 million potential revenue | Corporate/Private Events |
Strategic Growth Drivers
- Expansion of off-premise dining capabilities
- Enhanced digital ordering infrastructure
- Menu innovation and diversification
- Technology-driven customer engagement
Market Expansion Metrics
Current market penetration stands at 3.2% with potential to reach 7.5% in next 3-5 years.
Technology Investment
Technology investment projected at $22 million for digital platform enhancement and operational efficiency improvements.
Revenue Projection
| Year | Projected Revenue | Growth Percentage |
|---|---|---|
| 2024 | $2.87 billion | 6.5% |
| 2025 | $3.06 billion | 7.2% |
The Cheesecake Factory Incorporated (CAKE) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Disclaimer
All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.
We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.
All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.