(CAKE) The Cheesecake Factory - Ratings and Ratios

The Cheesecake Factory Incorporated (NASDAQ:CAKE) is a leading restaurant operator and licensor in the United States and Canada. The company owns and operates over 200 restaurants under its flagship brand, The Cheesecake Factory, as well as North Italia, Flower Child, and Fox Restaurant Concepts. It also operates a network of bakeries that supply cheesecakes and other baked goods to its restaurants, international licensees, and external customers, including retailers and distributors. Founded in 1972 and headquartered in Calabasas, California, the company has established itself as a key player in the casual dining sector, known for its extensive menu and signature cheesecakes. Web URL: https://www.thecheesecakefactory.com

From a technical perspective, CAKE is currently trading at 49.65, with a 20-day moving average of 48.17 and a 50-day moving average of 49.49, indicating recent upward momentum. The 200-day moving average of 45.25 suggests longer-term bullish trends. The stock faces resistance at 51.2 but has multiple support levels at 48.1, 45.6, 39.1, 35.8, and 33.1, providing a strong defensive structure. The Average True Range (ATR) of 2.35 reflects moderate volatility.

On the fundamental side, CAKE boasts a market capitalization of $2.367 billion, with a trailing P/E of 14.96 and a forward P/E of 12.94, signaling expectations of earnings growth. The price-to-book ratio of 5.34 indicates a premium valuation relative to book value, while the price-to-sales ratio of 0.66 suggests a reasonable valuation compared to revenue. The return on equity (RoE) of 35.35 highlights strong profitability and efficient use of shareholder capital.

3-Month Forecast:

Technical Outlook: CAKE is likely to test the resistance level of 51.2 in the near term, supported by the upward trend indicated by the 50-day moving average. A breakout above this level could push the stock toward 53.00, while a pullback may find support at 48.1 or 45.6. The ATR of 2.35 suggests that price fluctuations will remain moderate, with average daily moves expected to stay within this range.

Fundamental Outlook: With a forward P/E of 12.94 and a strong RoE of 35.35, CAKE is well-positioned to benefit from improving consumer spending and a rebound in the casual dining sector. The companys diversified brand portfolio and significant bakery operations provide multiple revenue streams, which could drive earnings growth over the next quarter. However, the stocks premium valuation relative to book value (P/B: 5.34) and the low P/S ratio of 0.66 suggest that investors will closely monitor upcoming earnings reports for signs of continued profitability and growth.