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Cheesecake Factory (NAS:CAKE) Forward Rate of Return (Yacktman) %

: 0.00% (As of Mar. 2023)
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Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Cheesecake Factory's forward rate of return for was 0.00%.

The historical rank and industry rank for Cheesecake Factory's Forward Rate of Return (Yacktman) % or its related term are showing as below:

CAKE' s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -8.91   Med: 13.36   Max: 18.87
Current: -8.91

During the past 13 years, Cheesecake Factory's highest Forward Rate of Return was 18.87. The lowest was -8.91. And the median was 13.36.

CAKE's Forward Rate of Return (Yacktman) % is ranked worse than
77.69% of 251 companies
in the Restaurants industry
Industry Median: 7.11 vs CAKE: -8.91

Unlike the Earnings Yield %, the Forward Rate of Return uses the normalized Free Cash Flow of the past seven years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.


Cheesecake Factory Forward Rate of Return (Yacktman) % Historical Data

The historical data trend for Cheesecake Factory's Forward Rate of Return (Yacktman) % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Cheesecake Factory Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Forward Rate of Return (Yacktman) %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 10.12 7.11 - - -

Cheesecake Factory Quarterly Data
Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23
Forward Rate of Return (Yacktman) % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - - - -

Competitive Comparison

For the Restaurants subindustry, Cheesecake Factory's Forward Rate of Return (Yacktman) %, along with its competitors' market caps and Forward Rate of Return (Yacktman) % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Cheesecake Factory Forward Rate of Return (Yacktman) % Distribution

For the Restaurants industry and Consumer Cyclical sector, Cheesecake Factory's Forward Rate of Return (Yacktman) % distribution charts can be found below:

* The bar in red indicates where Cheesecake Factory's Forward Rate of Return (Yacktman) % falls in comparison to its industry or sector. The grey bar indicates the Forward Rate of Return (Yacktman) %'s extreme value range as defined by GuruFocus.



Cheesecake Factory Forward Rate of Return (Yacktman) % Calculation

Forward Rate of Return is a concept that Don Yacktman uses in his investment approach. Yacktman explained the forward rate of return concept in detail in his interview with GuruFocus. Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. He said in the interview (March 2012, when the S&P 500 was at about 1400):

If the business is stable, this calculation is fairly straightforward. For instance, on the S&P 500 we would normalize earnings. We would then calculate what percentage of those earnings are not reinvested in the underlying businesses and are therefore free. Historically, for the S&P 500, this has been just under 50% of earnings. Currently, we expect the S&P to earn about 70 on a normalized basis, a number which is far below reported earnings due to our adjusting for record high profit margins. $70 X ½ / 1400 gives you a normalized free cash flow yield of approximately 2.5%.

The historical real growth rate of the S&P 500 (companies) is about 1.5%. Assuming an inflation rate of 2.5%, the forward rate of return on an investment in the S&P 500 is about 6.5% today (2.5% free cash flow yield plus 1.5% real growth plus 2.5% inflation).

Cheesecake Factory's Forward Rate of Return of Mar. 2023 is

Forward Rate of Return=Normalized Free Cash Flow/Price+5-Year EBITDA Growth Rate
=2.7367619/35.05+-0.1693
=-9.12 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Cheesecake Factory  (NAS:CAKE) Forward Rate of Return (Yacktman) % Explanation

Unlike the Earnings Yield, the Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.

For the growth part of the Forward Rate of Return calculation, GuruFocus uses the 5-year average growth rate of EBITDA per share as the growth rate, and the growth rate is always capped at 20%. For the Free Cash Flow we use per share data averaged over five years. The reason we use five years is to make it comparable to the growth rate.


Be Aware

In the Forward Rate of Return calculation, the growth rate is added directly to today's free cash flow yield. Therefore the calculation is reliable only if the company can grow at the same rate in the future as it did in the past. Investors should pay close attention to this when researching growth stocks. A more accurate measurement for return is Return on Capital.


Cheesecake Factory Forward Rate of Return (Yacktman) % Related Terms

Thank you for viewing the detailed overview of Cheesecake Factory's Forward Rate of Return (Yacktman) % provided by GuruFocus.com. Please click on the following links to see related term pages.


Cheesecake Factory (NAS:CAKE) Business Description

Cheesecake Factory logo
Industry
Traded in Other Exchanges
Address
26901 Malibu Hills Road, Calabasas Hills, CA, USA, 91301
Cheesecake Factory owns and operates restaurants in the United States and Canada under brands that include The Cheesecake Factory, North Italia, and a collection within the Fox Restaurants Concepts subsidiary. The company's international presence, in the Middle East and Mexico, is through licensing agreements with third parties. The company also has a bakery division that produces cheesecakes and other baked products for sale in its restaurants, international licensees, and third-party bakery customers. The company has four operating business segments: The Cheesecake Factory restaurants, North Italia, other FRC, and Flower Child. Most of the company's revenue comes from The Cheesecake Factory restaurants segment.
Executives
Adam S. Gordon director 26901 MALIBU HILLS ROAD, CALABASAS CA 91301
Khanh Collins director 22825 QUEENSBRIDGE DRIVE, ASHBURN VA 20148
Paul D. Ginsberg director C/O ROARK CAPITAL, 1180 PEACHTREE STREET NE, SUITE 2500, ATLANTA GA 30309
Rc Cake Holdings Llc 10 percent owner 1180 PEACHTREE STREET NE, SUITE 2500, ATLANTA GA 30309
Janice L. Meyer director 26901 MALIBU HILLS ROAD, CALABASAS CA 91301
Scarlett May officer: EVP, General Counsel 26901 MALIBU HILLS ROAD, CALABASAS HILLS CA 91301
Keith Carango officer: President (Subsidiary) 26901 MALIBU HILLS ROAD, CALABASAS HILLS CA 91301
Edie A Ames director C/O MORTONS RESTATURANT GROUP, INC., 325 LASALLE STREET, SUITE 500, CHICAGO IL 60610
Doug Benn officer: Executive VP, CFO C/O INNOVATIVE RESTAURANTS CONCEPT INC, 1640 POWERS FERRY RD BLDG 2 STE 300, MARIETTA GA 30067-9400
David M Gordon officer: President C/O THE CHEESECAKE FACTORY INCORPORATED, 26901 MALIBU HILLS DRIVE, CALABASAS HILLS CA 91301
Douglas L Schmick director 720 SW WASHINGTON STREET, SUITE 550, PORTLAND OR 97205
Laurence B Mindel director IL FORNAIO AMERICA CORP, 770 TAMAPAIS DR STE 400, CORTE MADERA CA 94925
Herbert Simon director 115 W WASHINGTON ST, INDIANAPOLIS IN 46204
Michael E Jannini officer: President C/O 26901 MALIBU HILLS DRIVE, CALABASAS HILLS CA 91301
David Bruce Pittaway director 150 E 58TH ST, STE 3700, NEW YORK NY 10155

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