At a glance
The Cheesecake Factory is worth $5.27B, about 35 times its fiscal 2025 earnings. Revenue grew 4.7% to $3.75B in fiscal 2025, with 4.0% kept as profit; over 5 years it has grown 13.6% a year. It pays a 1.11% dividend yield, and returned $488.2M to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned +98.2% over the past year with dividends reinvested and +23.6% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 62.4% in the 2020 crash (S&P 500: 33.7%) and 38.5% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 10 months and 23 months after the lows.
The business in plain English
The Cheesecake Factory Incorporated runs restaurants and a bakery business. It began as a small Los Angeles-area bakery in 1972 and opened its first restaurant in Beverly Hills in 1978. As of February 23, 2026, it owned and operated 368 restaurants in the US and Canada. That count included 216 The Cheesecake Factory, 48 North Italia, 43 Flower Child and 55 under other Fox Restaurant Concepts brands. Another 35 The Cheesecake Factory restaurants outside those two countries run under licensing deals with other companies.
Most of the money comes from restaurant meals and drinks. The flagship brand competes in upscale casual dining. That is a step above typical casual chains, with standards closer to fine dining but moderate prices. Its menu lists about 225 items, and the average check per guest was about $31.79 in fiscal 2025. That year, desserts made up about 17% of the brand's sales, alcohol 11%, and takeout and delivery about 21%. Two company bakeries make cheesecakes for its restaurants, its licensees and outside customers.
In fiscal 2025, which ended December 30, 2025, revenue totaled about $3.75 billion. The Cheesecake Factory segment produced 71.7% of it. Other Fox Restaurant Concepts brands added 9.5%, North Italia 9.2% and all remaining segments combined 9.7%. That leaves the company heavily dependent on its original brand.
Price history
The interactive chart needs JavaScript.
CAKE +98.2% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By business segment
| The Cheesecake Factory | $2.69B | 71.7% |
| All Other Segments | $362.1M | 9.7% |
| Other Fox Restaurant Concepts Llc | $355.1M | 9.5% |
| North Italia | $345.9M | 9.2% |
Latest results
- In Q3 FY2026 (ended Sep 29, 2026), revenue was $1.03B, up 13.9% from a year earlier, and net income was $61.3M (+92.2%).
- For fiscal 2025, revenue was $3.75B (+4.7% year over year; +13.6% a year from FY2020 to FY2025) with a 4% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +13.6% good |
|---|---|
| Operating margin | 5% watch |
| Free cash flow margin | 4.1% watch |
| Return on equity (FY2025) | 34% good |
| Return on assets (FY2025) | 4.6% watch |
| Net cash (cash minus debt) | $-313.6M weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $1.98B | $-253.4M | $-47.4M |
| FY2021 | $2.93B | $72.4M | $146.1M |
| FY2022 | $3.30B | $43.1M | $49.5M |
| FY2023 | $3.44B | $101.4M | $66.8M |
| FY2024 | $3.58B | $156.8M | $108.0M |
| FY2025 | $3.75B | $148.4M | $155.1M |
Valuation snapshot
| Market value | $5.27B |
|---|---|
| P/E ratio | 34.6 |
| Dividend yield | 1.11% |
Rank among 1514 US companies
Market value at each year end
The Cheesecake Factory’s market value went from $2.84B at the end of 2016 to $5.27B on Oct 28, 2026, up 86%; since the end of 2025 it is up 110%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $5.27B | +109.5% |
| 2025 | $2.52B | +3.9% |
| 2024 | $2.42B | +36.2% |
| 2023 | $1.78B | +9.0% |
| 2022 | $1.63B | -20.2% |
| 2021 | $2.04B | +20.9% |
| 2020 | $1.69B | -2.6% |
| 2019 | $1.73B | -12.1% |
| 2018 | $1.97B | -10.6% |
| 2017 | $2.21B | -22.3% |
| 2016 | $2.84B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| CAKE price data to Oct 28, 2026 | +112.1% | +98.2% | +55.9% | +23.6% | +9.4% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +112.1% |
| 2025 | +8.6% |
| 2024 | +39.3% |
| 2023 | +13.9% |
| 2022 | -17.0% |
| 2021 | +5.6% |
| 2020 | -3.5% |
| 2019 | -7.8% |
| 2018 | -7.5% |
| 2017 | -17.9% |
| 2016 | +32.1% |
| 2015 | -7.0% |
| 2014 | +5.7% |
| 2013 | +49.4% |
| 2012 | +12.3% |
| 2011 | -4.3% |
| 2010 | +42.0% |
| 2009 | +113.8% |
| 2008 | -57.4% |
| 2007 | -3.6% |
| 2006 | -34.2% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 70.5% over that stretch · deepest drop along the way 78.6%, back to its old high 15.4 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 61.1% over that stretch · deepest drop along the way 62.4%, back to its old high 10 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 15.3% over that stretch · deepest drop along the way 38.5%, back to its old high 22.5 months after the low |
Insider activity
Form 4 filings from 2025-11-03 to 2026-11-03 (25 read): 1 open-market purchases ($25K) and 19 sales ($32.5M).
| Date | Insider | Type | Value |
|---|---|---|---|
| Aug 5, 2026 | David Overton CHAIRMAN AND C.E.O., Director | sell | $10.0M |
| Jul 30, 2026 | Matthew Eliot Clark EXEC VP, CFO | sell | $6.8M |
| May 1, 2026 | David Overton CHAIRMAN AND C.E.O., Director | sell | $6.3M |
| Oct 29, 2026 | Matthew Eliot Clark EXEC VP, CFO | sell | $2.7M |
| Aug 10, 2026 | David M Gordon PRESIDENT | sell | $1.9M |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 13.6% | Mar 31, 2025 |
| FMR LLC | 7% | Jul 31, 2026 |
| David Overton | 6.7% | Mar 31, 2025 |
| Vanguard Portfolio Management | 5.64% | Mar 31, 2026 |
| Kayne Anderson Rudnick Investment Management, LLC | 4.8% | Dec 31, 2025 |
| EARNEST PARTNERS LLC | 4.8% | Jun 30, 2025 |
| Wellington Management Group LLP | 4.4% | Sep 30, 2025 |
| Invesco Ltd. | 3.4% | Jun 30, 2025 |
ETFs with the most weight in CAKE
| FDLS Inspire Fidelis Multi Factor ETF | 1.06% |
| DGRS WisdomTree US Smallcap Quality Dividend Growth Fund | 0.92% |
| FFND One Global ETF | 0.68% |
| XSMO Invesco S&P SmallCap Momentum ETF | 0.63% |
| MMSC First Trust Multi-Manager Small Cap Opportunities ETF | 0.48% |
| FLQS Franklin U.S. Small Cap Multifactor Index ETF | 0.47% |
| HAPS Harbor Human Capital Factor US Small Cap ETF | 0.45% |
| QSML WisdomTree U.S. SmallCap Quality Growth Fund | 0.36% |
What could go wrong
- Heavy reliance on one flagship brand. The Cheesecake Factory segment produced 71.7% of fiscal 2025 revenue. A food-safety scare, a social media backlash or other damage to that brand's reputation could hurt sales across the company.
- Newer restaurant brands may not pay off. Growth plans include North Italia, Flower Child and other Fox Restaurant Concepts brands. If these smaller chains fail to grow profitably, results could suffer and weak locations may need costly write-downs.
- Debt and convertible notes. Debt totaled about $563 million as of June 30, 2026, against about $195 million in cash and investments. Convertible notes could turn into new shares, diluting owners, and noteholder hedging could pressure the stock.
- Menu price increases could drive diners away. To offset inflation, the company raised menu prices faster than its old target of 2% to 3% a year. If guests push back, they may visit less or order cheaper items, hurting sales at established restaurants.
- Rising wages and union organizing. Restaurants need many trained staff, and wage inflation has pushed costs up before. Union organizing could add pressure. Operating profit was about 5 cents per sales dollar in fiscal 2025, so small cost rises matter.
- Diners cut back when budgets tighten. Eating out is optional spending. Job losses, higher interest rates or falling stock and home values can mean fewer visits and smaller checks. Tariffs and trade shifts could also raise food and supply costs.
Recent events
- Quarterly results released; Investor presentation or announcement; Other company announcement
- Quarterly results released; Investor presentation or announcement; Other company announcement
- Shareholder vote results
- Quarterly results released; Investor presentation or announcement; Other company announcement
- Major agreement signed; New debt or financial obligation
- Quarterly results released; Investor presentation or announcement; Other company announcement
For income and retirement investors
Cheesecake Factory pays a modest dividend. The yield was 1.11% as of October 28, 2026. Dividends per share were $1.08 in each of fiscal 2023, 2024 and 2025, with no increase in that span. In fiscal 2025, dividends took about 35% of earnings and 34% of free cash flow (cash left after running and investing in the business). Buybacks were larger: $287 million over fiscal 2021–2025, against $201 million in dividends. Shares outstanding fell 4.6% from October 2021 to July 2026.
The stock has fallen hard in downturns. It dropped 78.6% from October 2007 to November 2008 and got back to that peak by March 2010. In the 2020 COVID crash it fell 62.4% in about a month and recovered by January 2021. In 2022 it fell 38.5% and took until May 2024 to recover. Anyone forced to sell during slumps like these would lock in steep losses. A single stock carries more risk than a diversified fund.
Questions investors ask
How does Cheesecake Factory make money?
Mostly by selling food and drinks in restaurants it owns and operates. As of February 23, 2026, it ran 368 restaurants in the US and Canada, including 216 The Cheesecake Factory locations, 48 North Italia and 43 Flower Child. The Cheesecake Factory segment produced 71.7% of fiscal 2025 revenue of about $3.75 billion. The company also has 35 licensed restaurants abroad and bakeries that sell cheesecakes to licensees and outside customers.
Does Cheesecake Factory raise its dividend every year?
No. Dividends per share were $1.08 in each of fiscal 2023, 2024 and 2025, after rising from $0.81 in fiscal 2022, so there was no streak of yearly increases through fiscal 2025. The dividend yield was 1.11% as of October 28, 2026. In fiscal 2025, dividends used about 35% of earnings and 34% of free cash flow. The company spent more on buybacks, $153.9 million that year. It warns that its stock could suffer if it cannot pay or raise dividends.
How has Cheesecake Factory stock performed?
Very well in the year to October 28, 2026. The share price rose 98.2% over one year and 112.1% from the start of 2026. Over 10 years it gained an average of 9.4% a year. The path has been rough: it fell in 2017, 2018, 2019, 2020 and 2022. Its worst drop in about 21 years of price history was 86.2%. As of October 28, 2026, the price-to-earnings (P/E) ratio was 34.6, based on fiscal 2025 earnings.
How much debt does Cheesecake Factory have?
About $563 million in total debt as of June 30, 2026, against about $195 million in cash and investments. That left net debt (debt minus cash) of roughly $368 million. The borrowing includes convertible notes, which can turn into shares. The company warns that conversion or hedging by noteholders could weigh on the stock. It also warns that it may lack the cash to repurchase the notes in some cases, and that its credit facility has financial covenants (loan conditions) it must meet.
Are Cheesecake Factory executives selling stock?
Yes, and sales far outweighed purchases. Insider filings covering October 29, 2025, to October 29, 2026, include 18 sales worth about $30.1 million and one purchase of about $25,000. Chairman and CEO David Overton sold about $10.0 million on August 5, 2026, and $6.3 million on May 1, 2026. Chief financial officer Matthew Clark sold about $6.8 million on July 30, 2026. None was reported as part of a preset trading plan. Insiders sell for many reasons, such as taxes or diversification.