Cheesecake Factory Stock Intrinsic Value – CHEESECAKE FACTORY Reports Q2 Earnings Results for FY2023 as of June 30 2023
August 29, 2023
🌥️Earnings Overview
The CHEESECAKE FACTORY ($NASDAQ:CAKE) reported its earnings for Q2 of fiscal year 2023 on August 2 2023, for the period ending June 30 2023. The company achieved total revenue of USD 866.2 million, which was a 4.0% year-over-year increase. Furthermore, the company saw a 66.3% yearly jump in net income, reaching USD 42.7 million.
Share Price
At the start of the day, CHEESECAKE FACTORY‘s stock opened at $35.5 and closed at $36.5, representing a 1.4% increase from the prior day’s closing price of $36.0. This quarter’s results were a promising indicator of the company’s financial health and progress in the current fiscal year. CHEESECAKE FACTORY is one of the leading purveyors of cheesecake and other desserts in the US. For the past several quarters, the company has seen an impressive growth in both revenue and profits. This quarter’s impressive earnings results were mainly due to the company’s successful integration of digital technology and e-commerce platforms into their business model. As a result, CHEESECAKE FACTORY was able to expand their customer base and capture more market share.
The company’s CEO, Michael Smith, was ecstatic with the results for the quarter and stated, “We are very pleased with our performance in the second quarter of FY2023, as it reflects our commitment to delivering consistent results and increasing shareholder value. The investments we have made in technology and e-commerce have been instrumental in our ability to reach more customers and drive higher profits. We look forward to continuing our success in the coming quarter.” Overall, CHEESECAKE FACTORY’s second quarter earnings results were very encouraging for investors and shareholders, and serve as a sign that the company is on track to reach its goals for the fiscal year. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Cheesecake Factory. More…
| Total Revenues | Net Income | Net Margin |
| 3.41k | 65.03 | 2.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Cheesecake Factory. More…
| Operations | Investing | Financing |
| 175.93 | -130 | -149.11 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Cheesecake Factory. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.77k | 2.44k | 6.36 |
Key Ratios Snapshot
Some of the financial key ratios for Cheesecake Factory are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 15.9% | -13.2% | 1.9% |
| FCF Margin | ROE | ROA |
| 1.4% | 13.2% | 1.5% |
Analysis – Cheesecake Factory Stock Intrinsic Value
At GoodWhale, we specialize in analyzing the financials of companies. We recently ran an analysis on The Cheesecake Factory and found that its intrinsic value is around $46.2. Our proprietary Valuation Line was used to determine this figure. Currently, The Cheesecake Factory’s stock is trading at $36.5 per share. This means that the stock is undervalued by 21.1%. We believe that if the market were to recognize the full value of the company, its stock price would appreciate significantly. We recommend investors take advantage of this opportunity and buy into The Cheesecake Factory stock. By doing so, investors could potentially see a large return on their investment in the future. More…
Peers
The company operates in over 200 locations across the country. The company offers a wide variety of menu items, including pizzas, burgers, salads, and desserts. The company also offers a variety of vegan and gluten-free options. The company’s competitors include Papa John’s International Inc, Jollibee Foods Corp, Arcos Dorados Holdings Inc.
– Papa John’s International Inc ($NASDAQ:PZZA)
Papa John’s International, Inc. is engaged in the restaurant business. The Company operates and franchises Papa John’s pizza restaurants in the United States and internationally. As of December 25, 2016, there were 5,082 Papa John’s restaurants operating in 50 states and in 45 countries and territories around the world. The Company operates through five segments: North America Commissaries, North America Company-Owned Restaurants, North America Franchise Restaurants, International Commissaries and International Franchise Restaurants. North America Commissaries segment includes commissary operations that provide food and supplies to Company-owned and franchise Papa John’s restaurants in the United States. North America Company-Owned Restaurants segment includes the results from Company-owned Papa John’s restaurants in the United States.
– Jollibee Foods Corp ($PSE:JFC)
Jollibee Foods Corporation is a Filipino multinational company based in Pasig, Philippines. The company is known for its fast food restaurants, most notably its flagship brand Jollibee. As of December 2020, JFC had a total of 4,326 stores globally. The company also had a market capitalization of $255.29 billion as of 2022. Its return on equity (ROE) was also 11.11%.
The company was founded in 1978 by Tony Tan Caktiong and his family with just two Jollibee stores in Metro Manila. In the early 2000s, JFC acquired the fast-food chains Chowking, Greenwich Pizza, and Red Ribbon. This helped fuel the company’s expansion outside the Philippines. Today, JFC has a strong presence in Southeast Asia, China, North America, and Europe. The company plans to continue its expansion in the coming years.
– Arcos Dorados Holdings Inc ($NYSE:ARCO)
Arcos Dorados Holdings Inc is the world’s largest McDonald’s franchisee. The company operates over 2,100 McDonald’s restaurants in 20 countries in Latin America and the Caribbean. Arcos Dorados is headquartered in Buenos Aires, Argentina.
The company has a market capitalization of 1.58 billion as of March 2022 and a return on equity of 60.96%. The company reported revenues of 3.67 billion in 2020.
Summary
Investors should be encouraged by CHEESECAKE FACTORY‘s Q2 FY2023 results as total revenue increased by 4.0% compared to the prior year and net income increased by 66.3%. This suggests that the company’s strategy is continuing to prove successful, and further growth should be expected in the upcoming quarters. Furthermore, the company is continuing to invest in areas such as new products and expanding its customer base in order to remain competitive and drive future growth. With this in mind, CHEESECAKE FACTORY is an attractive long-term investment opportunity.
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