The Cheesecake Factory (CAKE) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of The Cheesecake Factory stock $48.27, price $107, that is 54.8% below the price, quality 60 out of 100. Rating: strongly overvalued. Calculated from audited financials with 25 of our 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 6, 2026.
How to read this chart
60‑month range $23.69 – $117.29 · fair‑value band $31.86 – $62.75 · the $106.76 price screens above the $48.27 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. As of Nov 6, 2026.
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The Cheesecake Factory Incorporated operates and licenses restaurants in the United States and Canada.
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It operates bakeries that produce cheesecakes and other baked products for its restaurants, international licensees, third-party bakery customers, external foodservice operators, retailers, and distributors.
The company operates restaurants under the brands comprising The Cheesecake Factory, North Italia, Flower Child, and Fox Restaurant Concepts. The Cheesecake Factory Incorporated was founded in 1972 and is headquartered in Calabasas, California.
Stock analysis
The Cheesecake Factory (CAKE) currently trades at $106.76, while our model-based Fair Value estimate is $48.27, 55% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of $52.48 per share, and 0 of the 25 models we run sit above the $106.76 price.
Bear case: the Multiples group reads lowest at $14.84, and 25 of the 25 models stay below the price. Data coverage for this calculation is high.
Scenario range: $31.86 (bear) to $62.75 (bull), the price of $106.76 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 60/100 (solid quality), in the Consumer Cyclical sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
The Cheesecake Factory reported revenue of $3.8B in FY2025 versus $2.9B in FY2021, a compound +6.4%/yr. Reported net income was $148M in FY2025, compounding +19.7%/yr from FY2021.
Key figures
Market cap $5.2B Mid · P/E ratio 28.9 · P/S ratio 1.34 · EPS (TTM) $3.69 · Dividend yield 1.1% · Net margin 4.6% · Return on equity 38.8% · Return on assets (EBIT) 4.0% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 52 out of 100 (low confidence).
What moves the price
The share trades about 9% below its 52-week high and 151% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Consumer Cyclical peers we cover trades at −30% fair-value upside, at −55%, CAKE screens richer than that median.
Fair Value models
Bear$31.86Fair Value $48.27Bull$62.75
Price $106.76 · Downside -54.8%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($2.18 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, 8 officers or directors sold shares worth $25.5M and none bought.
SaleAlexander L CappelloDirector5× since Feb 23, 2026: 5,868 shares, avg. $82.87$486,286Oct 29, 2026
SaleScarlett MayEVP, GENERAL COUNSEL3× since Mar 10, 2026: 16,123 shares, avg. $91.93$1.5MOct 29, 2026
SaleMatthew Eliot ClarkEXEC VP, CFO3× since Feb 25, 2026: 99,732 shares, avg. $100.29$10.0MOct 29, 2026
SaleJanice L. MeyerDirector1,958 shares at $109.36$214,127Aug 17, 2026
SaleEdie A AmesDirector3,000 shares at $106.95$320,850Aug 10, 2026
SaleDavid M GordonPRESIDENT31,950 shares at $110.03$3.5MAug 10, 2026
SaleDavid OvertonCHAIRMAN AND C.E.O., Director2× since May 1, 2026: 198,145 shares, avg. $82.52$16.4MAug 5, 2026
SaleAshley W HanscomPRINCIPAL ACCOUNTING OFFICER2× since Feb 25, 2026: 6,451 shares, avg. $84.28$543,704Jul 30, 2026
SaleSpero G AlexEVP Operations - CFRI4,790 shares at $66.00$316,140Feb 25, 2026
Plus 8 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.89/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+4.7%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+4.3%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+13.6%
Start year 2020 (pandemic). Over 10 years: +6.0% a year
Revenue growth 33 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+13.8%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: adjusted.
+10.1%
Earnings growth per share plus dividend.
Earnings per share, growth per year+9.0%
Dividend (yield on the price)1.1%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.7.1% vs 2.9%, picking up
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.−18% → 5%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+20.9%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+7.3%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +18.1% a year for the price and +4.8% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (100 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Positive
Recent news coverage is more positive than average.
AI conclusion: Recent revenue gains from menu innovations and digital engagement stand out as the main strength, while thin differentiation and limited moat in a competitive restaurant sector remain the core weakness.
Main risk: Class action lawsuits alleging improper tip credit practices at North Italia could increase labor costs through settlements, back pay or required wage adjustments and thereby squeeze operating margins.
Bull case: The company could implement uniform compliant wage policies across all brands and leverage its purchasing scale to offset any added labor expenses while preserving menu breadth and guest traffic.
Bear case: Ongoing or expanded legal actions might compel widespread changes to staffing and compensation models, raising costs materially and constraining the ability to sustain high average unit volumes.
The Cheesecake Factory posted record revenue in its latest quarter, with comparable sales up sharply thanks to new menu items and stronger digital engagement that lifted traffic. Management expects underlying sales growth next year to track closer to its historical pattern rather than the recent pace. Will the gains from menu changes and online channels hold up, or will results moderate toward prior norms?
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Restaurants · 199 stocks
Beats the industry median on 7/15 measures
A mixed picture versus its industry peers.
Valuation
Quality Score60 · Above median
Fair Value upside−54.8% · Bottom 25%
Profitability
Return on equity (12 months)38.8% · Top 25%
Return on assets4.6% · Above median
Net margin (12 months)4.6% · Above median
Operating margin (12 months)7.8% · Above median
Growth and dividend
Revenue growth (quarter YoY)7.7% · Above median
Dividend yield (12 months)1.1% · Bottom 25%
Balance sheet
Debt / equity1.29× · Highest 25%
Valuation Multiplesvs Restaurants median · lower = cheaper
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "The Cheesecake Factory Fair Value". https://www.fairvalue-calculator.com/stock/CAKE
Frequently asked questions
Is The Cheesecake Factory (CAKE) overvalued or undervalued?
As of Nov 6, 2026, our model estimates a fair value of $48.27 versus a price of $106.76, about 55% lower (overvalued).
What is the fair value of CAKE?
Our model-based fair value for The Cheesecake Factory is $48.27 (as of Nov 6, 2026), built from audited fundamentals. The current price: $106.76.
What is the quality score of CAKE?
The Cheesecake Factory has a Quality Score of 60/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for The Cheesecake Factory (CAKE)?
Our model-based price target is the fair value of $48.27 (as of Nov 6, 2026) from 25 valuation models. Cautious scenario $31.86, optimistic scenario $62.75. It is a calculation from audited fundamentals, not an analyst target.
What is the The Cheesecake Factory stock forecast for 2026?
Our models put fair value at $48.27, about 55% lower versus a price of $106.76 (overvalued). Cautious scenario $31.86, optimistic scenario $62.75. The calculation is refreshed regularly with new filings.
What is the revenue of The Cheesecake Factory (CAKE)?
The Cheesecake Factory reported trailing-twelve-month revenue of about $3.9B (latest available figure, as of Nov 6, 2026).
Does The Cheesecake Factory pay a dividend?
The Cheesecake Factory currently shows a dividend yield of 1.07% relative to its recent price (as of Nov 6, 2026).
How much is the dividend of The Cheesecake Factory (CAKE) and when is the ex-dividend date?
The Cheesecake Factory pays a dividend of $1.14 per share a year, a dividend yield of 1.1%. The last ex-dividend date was Aug 11, 2026. A dividend has been paid every year since 2022. The payout ratio is 27.8% of earnings (on adjusted earnings, reported 30.9%). Free cash flow covers the dividend 2.73 times. Our assessment: Well covered. A low payout and the dividend is fully funded by free cash flow, a comfortable, sustainable dividend.
What growth is priced into The Cheesecake Factory (CAKE)?
For today's price to be fair in a discounted-cash-flow model, The Cheesecake Factory would have to grow free cash flow by +20.9 % per year for five years (discount rate 9.8 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +13.6 % per year. As of Nov 6, 2026.
What discount rate (WACC) does the fair value of CAKE use?
Our models discount The Cheesecake Factory at 9.8 %: a base by market capitalisation (mid), damped by beta 1.04, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For The Cheesecake Factory that is +20.9 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (9.8 %) and the same formula as our fair value.
How much growth has The Cheesecake Factory (CAKE) delivered so far?
Over the past 5 years revenue at The Cheesecake Factory grew +13.6 % a year. The price currently implies free-cash-flow growth of +20.9 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of The Cheesecake Factory (CAKE) growing?
The median revenue growth in the sector is +4.7 % a year. That is the yardstick for the growth priced into The Cheesecake Factory (+20.9 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of The Cheesecake Factory (CAKE)?
The free-cash-flow yield on the price is 3.00 %: that much free cash flow The Cheesecake Factory produces per unit of market value. When it exceeds the discount rate of our models (9.8 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of The Cheesecake Factory (CAKE)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For The Cheesecake Factory it is $48.27 per share (as of Nov 6, 2026), against a price of $106.76. It is the blended result of 25 valuation models in 8 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings).
Is The Cheesecake Factory stock overvalued or undervalued in 2026?
As of Nov 6, 2026, CAKE trades above its calculated fair value: price $106.76, fair value $48.27, a gap of about −55% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of CAKE?
No. The price is what the market pays today ($106.76); the fair value is what the company's own numbers justify ($48.27). For The Cheesecake Factory the two are $58.49 per share apart. That gap is exactly why we show both numbers side by side.
How much is The Cheesecake Factory worth?
The market values The Cheesecake Factory at about $5.2B (market capitalisation, as of Nov 6, 2026). Per share that is $106.76; our models calculate a fair value of $48.27 per share.
What do the bullish and bearish scenarios say about CAKE?
Our models span a range for The Cheesecake Factory: cautious scenario $31.86, base $48.27, optimistic $62.75 per share (as of Nov 6, 2026, price $106.76). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of CAKE?
The Cheesecake Factory trades at a price-to-earnings ratio of 28.9 (as of Nov 6, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $48.27 is built from several models across several years. Excluding one-off items of fiscal year 2025 it is 31.3 (reported for FY2025: 34.8). Median P/E at fiscal year-end, 9 fiscal years (2016 to 2025), reported earnings, FY2019 ex one-offs: 16.9. Other multiples: PEG 1.5, P/B 11.9, P/S 1.3, EV/EBITDA 15.6.
What is the PEG ratio of CAKE?
The PEG ratio of The Cheesecake Factory is 1.46 (P/E divided by earnings growth, as of Nov 6, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of The Cheesecake Factory (CAKE)?
Balance-sheet figures for The Cheesecake Factory (as of Nov 6, 2026): return on equity 38.8%, debt of 1.29 per unit of equity. They feed the Quality Score of 60/100, which measures business quality independently of the share price.
How far is CAKE from its 52-week high?
The Cheesecake Factory trades at $106.76, about 9% below its 52-week high of $117.29 and 151% above the low of $42.61 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $48.27 is for.
Which stocks are comparable to The Cheesecake Factory?
From the same area (Consumer Cyclical) we also value McDonald's Corporation, Starbucks Corporation, Yum! Brands, Inc, Chipotle Mexican Grill, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is The Cheesecake Factory stock attractive at the current price?
The data as of Nov 6, 2026: price $106.76, calculated fair value $48.27 (−55%), Quality Score 60/100, from 25 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of CAKE calculated?
We run The Cheesecake Factory through 25 models from 8 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of $48.27 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.0% above its aggregate fair value. The Cheesecake Factory itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of The Cheesecake Factory (CAKE)?
The closing price on Nov 6, 2026 was $106.76. Our model-based fair value is $48.27, about 55% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with The Cheesecake Factory right now?
The price sits above even our optimistic bull case ($62.75). The favourable scenario is already priced in. Solid but not exceptional quality (60/100) and above fair value, neither a clear bargain nor a standout compounder. A fairly wide model range ($31.86 to $62.75) leaves room in how you read the outcome.
Where does the earnings growth of The Cheesecake Factory (CAKE) come from?
Earnings per share at The Cheesecake Factory grew +1.8 % a year from 2014 to 2025. Broken into its drivers: revenue per share +6.5 %, EBIT margin −6.5 %, tax rate +2.8 %, residual (interest, one-offs) −0.5 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of The Cheesecake Factory
How large is the market capitalisation of The Cheesecake Factory (CAKE)?
The market capitalisation of The Cheesecake Factory is $5.2B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of The Cheesecake Factory (CAKE)?
The price-to-sales ratio of The Cheesecake Factory is 1.34 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of The Cheesecake Factory (CAKE)?
Earnings per share at The Cheesecake Factory are $3.69 (price ÷ EPS = P/E 28.9). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of The Cheesecake Factory (CAKE)?
The dividend yield of The Cheesecake Factory is 1.1% (payout 27.8%, on adjusted earnings, reported 30.9%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of The Cheesecake Factory (CAKE)?
The net margin of The Cheesecake Factory is 4.6% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of The Cheesecake Factory (CAKE)?
The return on equity (ROE) of The Cheesecake Factory is 38.8% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of The Cheesecake Factory (CAKE)?
On an EBIT basis the return on assets of The Cheesecake Factory is 4.0% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of The Cheesecake Factory (CAKE)?
The operating margin of The Cheesecake Factory is 7.8% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at The Cheesecake Factory (CAKE)?
Revenue at The Cheesecake Factory is growing +7.7% versus a year earlier (3y avg +4.3%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at The Cheesecake Factory (CAKE)?
Earnings per share at The Cheesecake Factory are growing +23.7% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does The Cheesecake Factory (CAKE) carry?
The net debt of The Cheesecake Factory is $3.2B (fiscal year 2025, ≈ 20.9 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Nov 6, 2026