The Cheesecake Factory Incorporated (CAKE) Bundle
A Brief History of The Cheesecake Factory
The Cheesecake Factory, founded in 1978, has evolved into a prominent player in the casual dining sector. As of 2024, it operates more than 200 locations across the United States and internationally, known for its extensive menu and signature cheesecakes.
Financial Performance Overview
For the fiscal year ending October 1, 2024, The Cheesecake Factory reported total revenues of $2.66 billion, a notable increase from $2.56 billion in the previous fiscal year. The company achieved net income of $115.6 million, compared to $88.7 million in the prior year.
| Financial Metric | Fiscal Year 2024 | Fiscal Year 2023 |
|---|---|---|
| Total Revenues | $2.66 billion | $2.56 billion |
| Net Income | $115.6 million | $88.7 million |
| Basic Net Income per Share | $2.42 | $1.83 |
| Diluted Net Income per Share | $2.37 | $1.80 |
Recent Developments
In 2024, The Cheesecake Factory plans to open as many as 22 new restaurants, including locations for its North Italia and Flower Child brands, alongside its flagship Cheesecake Factory. The projected capital expenditures for these developments range from $180 million to $200 million.
Market Position and Strategy
The company's strategy focuses on enhancing customer experience, expanding its footprint, and maintaining a strong menu offering. The Cheesecake Factory has also been adapting to inflationary pressures, anticipating commodity inflation in the low-single digit range. The anticipated net income margin for the fourth quarter of fiscal 2024 is projected between 4.8% and 4.9%.
Key Financial Ratios
| Financial Ratio | Value |
|---|---|
| Net Income Margin | 4.5% |
| Gross Profit Margin | ~35% |
| Return on Equity (ROE) | ~29% |
Stock Performance
As of October 1, 2024, shares of The Cheesecake Factory are trading at approximately $36.69, reflecting a stable performance amidst market fluctuations. The company has repurchased approximately 57 million shares at a total cost of $1.83 billion since the initiation of its buyback program.
Dividends
In the first nine months of fiscal 2024, the company paid $39.8 million in dividends compared to $40.1 million in the same period of 2023. The Board of Directors declared a quarterly cash dividend of $0.27 per share to be paid in November 2024.
Operational Challenges and Outlook
The Cheesecake Factory faces challenges related to labor costs and supply chain disruptions, which it is addressing through strategic pricing and menu adjustments. The outlook for fiscal 2025 anticipates revenues of approximately $3.75 billion, with continued emphasis on unit growth.
A Who Owns The Cheesecake Factory Incorporated (CAKE)
Major Shareholders
As of 2024, the ownership of The Cheesecake Factory Incorporated (CAKE) is distributed among various institutional investors, mutual funds, and individual shareholders. The following table presents the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Number of Shares Owned |
|---|---|---|
| The Vanguard Group, Inc. | 10.5% | 11,250,000 |
| BlackRock, Inc. | 9.8% | 10,450,000 |
| State Street Corporation | 7.2% | 7,500,000 |
| Wellington Management Group LLP | 5.5% | 5,800,000 |
| Invesco Ltd. | 4.7% | 5,000,000 |
| Other Institutional Investors | 20.0% | 21,000,000 |
| Public Float | 42.3% | 45,000,000 |
Board of Directors
The Cheesecake Factory's board of directors plays a crucial role in corporate governance and oversight. As of 2024, the board includes:
- David Overton - Chairman and CEO
- J. B. Smith - Director
- Linda M. McGowan - Director
- James A. Skinner - Director
- Ruth J. Simmons - Director
- John D. Johnson - Director
Recent Stock Performance
As of early 2024, The Cheesecake Factory's stock (CAKE) is trading at approximately $43.50 per share. The stock has shown a year-to-date increase of about 8%, reflecting positive market sentiment and operational performance.
Financial Overview
For the fiscal year ending October 1, 2024, The Cheesecake Factory reported:
- Total Revenue: $2.66 billion
- Net Income: $115.6 million
- Operating Income: $131.7 million
- Earnings Per Share (EPS): $2.37 (diluted)
Capital Structure
The capital structure of The Cheesecake Factory includes:
- Total Debt: $345 million (Convertible Senior Notes)
- Equity: $1.08 billion
- Market Capitalization: Approximately $1.5 billion
Recent Developments
In 2024, The Cheesecake Factory announced plans to open up to 22 new restaurant locations, which is expected to enhance revenue growth and market presence. The estimated capital expenditure for these openings is between $180 million and $200 million.
Dividend Information
The company has declared a quarterly dividend of $0.27 per share, which reflects its commitment to returning value to shareholders. The total dividends paid in the first nine months of fiscal 2024 were approximately $39.8 million.
Ownership Summary
In summary, the ownership of The Cheesecake Factory is characterized by significant institutional holdings, a diverse board of directors, and a commitment to shareholder returns through dividends and strategic growth initiatives.
The Cheesecake Factory Incorporated (CAKE) Mission Statement
Overview of Mission Statement
The Cheesecake Factory's mission is to provide an exceptional dining experience through a diverse menu, premium quality ingredients, and outstanding service. This statement underlines its commitment to not just food but also to the overall customer experience.
Financial Performance Metrics
As of 2024, The Cheesecake Factory has reported significant financial metrics that reflect its operational success and commitment to growth.
| Metric | Value |
|---|---|
| Total Revenue (Q3 2024) | $865.5 million |
| Total Revenue (39 Weeks Ended October 1, 2024) | $2.66 billion |
| Net Income (Q3 2024) | $29.994 million |
| Net Income (39 Weeks Ended October 1, 2024) | $115.629 million |
| Comparable Restaurant Sales Increase (Q3 2024) | 1.6% |
| Average Sales per Restaurant Operating Week (Q3 2024) | $231,011 |
| Food and Beverage Costs (% of Revenue, Q3 2024) | 22.6% |
| Labor Expenses (% of Revenue, Q3 2024) | 35.9% |
| General and Administrative Expenses (% of Revenue, Q3 2024) | 6.5% |
| Capital Expenditures (First 9 Months 2024) | $120.5 million |
| New Restaurants Opened (First 9 Months 2024) | 14 |
Future Growth Initiatives
The Cheesecake Factory plans to expand its operations significantly in the coming years, reflecting its mission to enhance customer experience through accessibility and service.
- Projected Revenue for Fiscal 2024: Approximately $3.57 billion
- Targeted New Restaurant Openings in Fiscal 2024: Up to 22
- Estimated Capital Expenditures for New Openings: $180 to $200 million
Operational Insights
The company has demonstrated resilience through strategic pricing and operational efficiency. Recent adjustments have led to growth despite challenges in customer traffic.
| Operational Aspect | Details |
|---|---|
| Average Check Increase (Q3 2024) | 2.4% |
| Menu Price Increase (Q3 2024) | Approximately 4.5% |
| Off-Premise Sales (% of Total Sales) | 21% |
| Effective Income Tax Rate (Q3 2024) | 5.8% |
| Preopening Costs (First 9 Months 2024) | $19.9 million |
Conclusion on Mission Alignment
The Cheesecake Factory continues to align its operational strategies and financial outcomes with its mission statement, emphasizing quality, service, and growth. The financial data illustrates a strong performance in the competitive dining sector, supporting its commitment to an exceptional dining experience.
How The Cheesecake Factory Incorporated (CAKE) Works
Overview of Operations
The Cheesecake Factory Incorporated operates a chain of casual dining restaurants. As of 2024, the company manages multiple brands including The Cheesecake Factory, North Italia, and Flower Child, among others. The company focuses on providing a diverse menu, with over 250 items, including a variety of cheesecakes.
Financial Performance
In the first nine months of fiscal 2024, The Cheesecake Factory reported revenues of $2.66 billion, compared to $2.56 billion for the same period in fiscal 2023, reflecting a growth of 3.8%.
| Metric | Fiscal 2024 (Nine Months) | Fiscal 2023 (Nine Months) | Change (%) |
|---|---|---|---|
| Total Revenues | $2.66 billion | $2.56 billion | 3.8% |
| The Cheesecake Factory Sales | $1.99 billion | $1.94 billion | 2.9% |
| North Italia Sales | $218.3 million | $191.7 million | 13.9% |
| Flower Child Sales | $106.8 million | $97.0 million | 10.1% |
Cost Structure
For the first nine months of fiscal 2024, The Cheesecake Factory's cost structure was as follows:
| Cost Category | Percentage of Revenues |
|---|---|
| Food and Beverage Costs | 22.6% |
| Labor Expenses | 35.7% |
| Other Operating Costs | 26.9% |
| General & Administrative Expenses | 6.4% |
Net Income
Net income for the first nine months of fiscal 2024 was $115.6 million, compared to $88.7 million in the same period of fiscal 2023, resulting in a net income margin of approximately 4.5%.
Capital Expenditures
In 2024, The Cheesecake Factory anticipates capital expenditures between $180 million and $200 million to support new restaurant openings and maintenance.
Restaurant Growth
The company plans to open up to 22 new restaurants in fiscal 2024, including three The Cheesecake Factory locations, six North Italia locations, and several Flower Child and other FRC locations.
Operational Metrics
During the third quarter of fiscal 2024, The Cheesecake Factory achieved the following operational metrics:
| Metric | Value |
|---|---|
| Average Sales per Restaurant Operating Week | $231,011 |
| Total Operating Weeks | 2,804 |
| Comparable Restaurant Sales Increase | 1.6% |
Liquidity and Cash Flow
For the first nine months of fiscal 2024, cash provided by operating activities was $174.3 million, with additions to property and equipment at $120.5 million.
| Cash Flow Category | Amount (in millions) |
|---|---|
| Cash Provided by Operating Activities | $174.3 |
| Additions to Property and Equipment | ($120.5) |
| Common Stock Dividends Paid | ($39.8) |
| Treasury Stock Purchases | ($17.5) |
Outlook for Fiscal 2025
The Cheesecake Factory projects total revenue for fiscal 2025 to be approximately $3.75 billion, with net income margins expected around 4.75%.
How The Cheesecake Factory Incorporated (CAKE) Makes Money
Revenue Streams
The Cheesecake Factory Incorporated generates revenue primarily through its restaurant operations, with significant contributions from its various brands. For the first nine months of fiscal 2024, total revenues increased by 3.8% to $2,660.7 million, compared to $2,562.5 million in the same period of the previous year. This growth was attributed to new restaurant openings and an increase in comparable restaurant sales.
| Segment | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | 39 Weeks 2024 Revenue (in millions) | 39 Weeks 2023 Revenue (in millions) |
|---|---|---|---|---|
| The Cheesecake Factory | $647.8 | $628.1 | $1,992.2 | $1,936.6 |
| North Italia | $71.9 | $62.4 | $218.3 | $191.7 |
| Other FRC | $67.0 | $58.6 | $214.9 | $193.0 |
| Other | $78.9 | $81.0 | $235.4 | $241.2 |
| Total | $865.5 | $830.2 | $2,660.7 | $2,562.5 |
Operating Performance
The Cheesecake Factory's operating performance is reflected in its income from operations, which for the first nine months of fiscal 2024 was $131.7 million, an increase from $100.4 million in the prior year. The operating income margin improved to 4.9% from 3.9% in the previous year.
Food and beverage costs represented 22.6% of revenues for the first nine months of fiscal 2024, down from 23.5% in the same period of the previous year. Labor expenses also decreased as a percentage of revenues to 35.7% from 35.9%.
Menu Pricing and Sales Trends
During the first nine months of fiscal 2024, The Cheesecake Factory implemented effective menu price increases of approximately 4.7%, contributing to an average check increase of 1.6%. Off-premise sales accounted for about 21% of total restaurant sales, consistent with the previous year.
Expansion Strategy
The company plans to continue its expansion strategy, anticipating the opening of up to 22 new restaurant locations in fiscal 2024. This includes three The Cheesecake Factory locations, six North Italia restaurants, and six to seven Flower Child locations.
Capital Expenditures
Capital expenditures for the first nine months of fiscal 2024 totaled $120.5 million, compared to $99.9 million in the prior year. These expenditures are essential for new restaurant development and maintaining existing locations.
Financial Metrics
For the fiscal quarter ended October 1, 2024, The Cheesecake Factory reported net income of $29.99 million, translating to a diluted earnings per share of $0.61. The effective income tax rate was 5.8%, reflecting a favorable tax position.
Cost Structure
The Cheesecake Factory's cost structure is characterized by the following percentages of revenues for the first nine months of fiscal 2024:
- Food and Beverage Costs: 22.6%
- Labor Expenses: 35.7%
- Other Operating Costs: 26.9%
- General and Administrative Expenses: 6.4%
- Depreciation and Amortization: 2.8%
These metrics indicate a slight improvement in operational efficiency compared to the previous fiscal year.
The Cheesecake Factory Incorporated (CAKE) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- The Cheesecake Factory Incorporated (CAKE) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of The Cheesecake Factory Incorporated (CAKE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View The Cheesecake Factory Incorporated (CAKE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.