GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Cheesecake Factory Inc (NAS:CAKE) » Definitions » Piotroski F-Score

Cheesecake Factory (Cheesecake Factory) Piotroski F-Score : 7 (As of Jul. 17, 2024)


View and export this data going back to 1983. Start your Free Trial

What is Cheesecake Factory Piotroski F-Score?

Good Sign:

Piotroski F-Score is 7, indicates a very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Cheesecake Factory has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

The historical rank and industry rank for Cheesecake Factory's Piotroski F-Score or its related term are showing as below:

CAKE' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Med: 6   Max: 8
Current: 7

During the past 13 years, the highest Piotroski F-Score of Cheesecake Factory was 8. The lowest was 4. And the median was 6.


Cheesecake Factory Piotroski F-Score Historical Data

The historical data trend for Cheesecake Factory's Piotroski F-Score 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 Piotroski F-Score Chart

Cheesecake Factory Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.00 5.00 7.00 5.00 7.00

Cheesecake Factory Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Piotroski F-Score Get a 7-Day Free Trial 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 5.00 6.00 7.00 7.00 7.00

Competitive Comparison of Cheesecake Factory's Piotroski F-Score

For the Restaurants subindustry, Cheesecake Factory's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score 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's Piotroski F-Score Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Cheesecake Factory's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Cheesecake Factory's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* 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.

This Year (Mar24) TTM:Last Year (Mar23) TTM:
Net Income was 42.675 + 17.945 + 12.681 + 33.191 = $106 Mil.
Cash Flow from Operations was 36.481 + 49.03 + 67.855 + 66.748 = $220 Mil.
Revenue was 866.17 + 830.21 + 877.009 + 891.223 = $3,465 Mil.
Gross Profit was 358.927 + 333.814 + 367.005 + 367.04 = $1,427 Mil.
Average Total Assets from the begining of this year (Mar23)
to the end of this year (Mar24) was
(2742.488 + 2769.708 + 2776.89 + 2840.383 + 2837.64) / 5 = $2793.4218 Mil.
Total Assets at the begining of this year (Mar23) was $2,742 Mil.
Long-Term Debt & Capital Lease Obligation was $1,714 Mil.
Total Current Assets was $284 Mil.
Total Current Liabilities was $655 Mil.
Net Income was 25.656 + -2.398 + -3.298 + 28.05 = $48 Mil.

Revenue was 832.643 + 784.001 + 892.802 + 866.114 = $3,376 Mil.
Gross Profit was 323.942 + 293.187 + 353.704 + 348.362 = $1,319 Mil.
Average Total Assets from the begining of last year (Mar22)
to the end of last year (Mar23) was
(2753.741 + 2772.433 + 2734.074 + 2775.22 + 2742.488) / 5 = $2755.5912 Mil.
Total Assets at the begining of last year (Mar22) was $2,754 Mil.
Long-Term Debt & Capital Lease Obligation was $1,687 Mil.
Total Current Assets was $314 Mil.
Total Current Liabilities was $627 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Cheesecake Factory's current Net Income (TTM) was 106. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Cheesecake Factory's current Cash Flow from Operations (TTM) was 220. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Mar23)
=106.492/2742.488
=0.03883043

ROA (Last Year)=Net Income/Total Assets (Mar22)
=48.01/2753.741
=0.01743446

Cheesecake Factory's return on assets of this year was 0.03883043. Cheesecake Factory's return on assets of last year was 0.01743446. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Cheesecake Factory's current Net Income (TTM) was 106. Cheesecake Factory's current Cash Flow from Operations (TTM) was 220. ==> 220 > 106 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Mar24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar23 to Mar24
=1713.827/2793.4218
=0.61352245

Gearing (Last Year: Mar23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar22 to Mar23
=1686.56/2755.5912
=0.61205015

Cheesecake Factory's gearing of this year was 0.61352245. Cheesecake Factory's gearing of last year was 0.61205015. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Mar24)=Total Current Assets/Total Current Liabilities
=283.572/654.501
=0.43326443

Current Ratio (Last Year: Mar23)=Total Current Assets/Total Current Liabilities
=313.636/626.695
=0.50046035

Cheesecake Factory's current ratio of this year was 0.43326443. Cheesecake Factory's current ratio of last year was 0.50046035. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Cheesecake Factory's number of shares in issue this year was 48.662. Cheesecake Factory's number of shares in issue last year was 49.778. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=1426.786/3464.612
=0.41181697

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1319.195/3375.56
=0.39080775

Cheesecake Factory's gross margin of this year was 0.41181697. Cheesecake Factory's gross margin of last year was 0.39080775. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Mar23)
=3464.612/2742.488
=1.26330981

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Mar22)
=3375.56/2753.741
=1.22580882

Cheesecake Factory's asset turnover of this year was 1.26330981. Cheesecake Factory's asset turnover of last year was 1.22580882. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+0+0+1+1+1
=7

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Cheesecake Factory has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

Cheesecake Factory  (NAS:CAKE) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Cheesecake Factory Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of Cheesecake Factory's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Cheesecake Factory (Cheesecake Factory) Business Description

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. Majority of the company's revenue comes from The Cheesecake Factory restaurants segment.
Executives
Ashley W Hanscom officer: PRINCIPAL ACCOUNTING OFFICER 26901 MALIBU HILLS ROAD, CALABASAS HILLS CA 91301
Adam S. Gordon director 26901 MALIBU HILLS ROAD, CALABASAS CA 91301
Edie A Ames director C/O MORTONS RESTATURANT GROUP, INC., 325 LASALLE STREET, SUITE 500, CHICAGO IL 60610
David Bruce Pittaway director 150 E 58TH ST, STE 3700, NEW YORK NY 10155
Khanh Collins director 22825 QUEENSBRIDGE DRIVE, ASHBURN VA 20148
Matthew Eliot Clark officer: VP, Strategic Planning 26901 MALIBU HILLS ROAD, CALABASAS HILLS CA 91301
David M Gordon officer: President C/O THE CHEESECAKE FACTORY INCORPORATED, 26901 MALIBU HILLS DRIVE, CALABASAS HILLS CA 91301
Cheryl Slomann officer: Principal Accounting Officer 6450 VIA REAL, CURPINTERIA CA 93013
David Overton director, officer: Chairman and C.E.O.
Keith Carango officer: President (Subsidiary) 26901 MALIBU HILLS ROAD, CALABASAS HILLS CA 91301
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
Laurence B Mindel director IL FORNAIO AMERICA CORP, 770 TAMAPAIS DR STE 400, CORTE MADERA CA 94925
Alexander L Cappello director C/O THE CHEESECAKE FACTORY INC, 26901 MALIBU HILLS ROAD, CALABASAS HILLS CA 91301