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Cheesecake Factory Beneish M-Score

: -1.44 (As of Today)
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The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Warning Sign:

Beneish M-Score -1.44 higher than -1.78, which implies that the company might have manipulated its financial results.

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

NAS:CAKE' s Beneish M-Score Range Over the Past 10 Years
Min: -5.01   Med: -2.83   Max: -0.64
Current: -1.44

-5.01
-0.64

During the past 13 years, the highest Beneish M-Score of Cheesecake Factory was -0.64. The lowest was -5.01. And the median was -2.83.


Cheesecake Factory Beneish M-Score Historical Data

The historical data trend for Cheesecake Factory's Beneish M-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 Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.90 -2.43 -3.02 -3.70 -2.83

Cheesecake Factory Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Beneish M-Score 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 -2.11 -1.72 -2.83 -0.85 -1.44

Competitive Comparison

For the Restaurants subindustry, Cheesecake Factory's Beneish M-Score, along with its competitors' market caps and Beneish M-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 Beneish M-Score Distribution

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

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



Cheesecake Factory Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Cheesecake Factory for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 2.2427+0.528 * 0.9769+0.404 * 1.2168+0.892 * 1.1264+0.115 * 0.9854
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9264+4.679 * -0.0561-0.327 * 1.1137
=-1.44

* 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 (Jun21) TTM:Last Year (Jun20) TTM:
Accounts Receivable was $58 Mil.
Revenue was 768.956 + 627.417 + 554.552 + 517.716 = $2,469 Mil.
Gross Profit was 325.2 + 261.81 + 209.231 + 198.957 = $995 Mil.
Total Current Assets was $328 Mil.
Total Assets was $2,722 Mil.
Property, Plant and Equipment(Net PPE) was $2,003 Mil.
Depreciation, Depletion and Amortization(DDA) was $89 Mil.
Selling, General, & Admin. Expense(SGA) was $171 Mil.
Total Current Liabilities was $597 Mil.
Long-Term Debt & Capital Lease Obligation was $1,677 Mil.
Net Income was 33.715 + 3.868 + -32.317 + -28.346 = $-23 Mil.
Non Operating Income was -11.357 + -1.144 + -15.078 + -11.88 = $-39 Mil.
Cash Flow from Operations was 108.796 + 21.642 + 35.644 + 2.948 = $169 Mil.
Accounts Receivable was $23 Mil.
Revenue was 295.851 + 615.106 + 694.03 + 586.536 = $2,192 Mil.
Gross Profit was 100.9 + 237.219 + 284.977 + 239.995 = $863 Mil.
Total Current Assets was $455 Mil.
Total Assets was $2,867 Mil.
Property, Plant and Equipment(Net PPE) was $2,074 Mil.
Depreciation, Depletion and Amortization(DDA) was $91 Mil.
Selling, General, & Admin. Expense(SGA) was $164 Mil.
Total Current Liabilities was $533 Mil.
Long-Term Debt & Capital Lease Obligation was $1,618 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Accounts Receivable in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(57.934 / 2468.641) / (22.932 / 2191.523)
=0.02346797 / 0.01046396
=2.2427

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(863.091 / 2191.523) / (995.198 / 2468.641)
=0.3938316 / 0.40313598
=0.9769

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (328.264 + 2002.786) / 2722.29) / (1 - (454.605 + 2074.026) / 2867.281)
=0.14371724 / 0.11810841
=1.2168

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=2468.641 / 2191.523
=1.1264

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(91.264 / (91.264 + 2074.026)) / (89.492 / (89.492 + 2002.786))
=0.04214863 / 0.04277252
=0.9854

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(170.627 / 2468.641) / (163.501 / 2191.523)
=0.06911779 / 0.07460611
=0.9264

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((1676.888 + 597.152) / 2722.29) / ((1618.035 + 532.672) / 2867.281)
=0.83534083 / 0.75008588
=1.1137

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(-23.08 - -39.459 - 169.03) / 2722.29
=-0.0561

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Cheesecake Factory has a M-score of -1.44 signals that the company is likely to be a manipulator.


Cheesecake Factory Beneish M-Score Related Terms

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Cheesecake Factory Business Description

Cheesecake Factory logo
Industry
Consumer Cyclical » Restaurants NAICS : 722511 SIC : 5812
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 others. Most of the company's revenue comes from The Cheesecake Factory restaurants segment.
Executives
Meyer Janice L. director 26901 MALIBU HILLS ROAD CALABASAS CA 91301
Ginsberg Paul D. 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
Ames Edie A director C/O MORTONS RESTATURANT GROUP, INC. 325 LASALLE STREET, SUITE 500 CHICAGO IL 60610
Overton David director, officer: Chairman and C.E.O. PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: OVERTON DAVID a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Slomann Cheryl officer: Principal Accounting Officer 6450 VIA REAL CURPINTERIA CA 93013
Pittaway David Bruce director 150 E 58TH ST STE 3700 NEW YORK NY 10155
Clark Matthew Eliot officer: Exec VP, CFO 26901 MALIBU HILLS ROAD CALABASAS HILLS CA 91301
Gordon David M officer: President C/O THE CHEESECAKE FACTORY INCORPORATED 26901 MALIBU HILLS DRIVE CALABASAS HILLS CA 91301
Carango Keith officer: President (Subsidiary) 26901 MALIBU HILLS ROAD CALABASAS HILLS CA 91301
May Scarlett officer: EVP, General Counsel 26901 MALIBU HILLS ROAD CALABASAS HILLS CA 91301
Mindel Laurence B director IL FORNAIO AMERICA CORP 770 TAMAPAIS DR STE 400 CORTE MADERA CA 94925
Cappello Alexander L director C/O THE CHEESECAKE FACTORY INC 26901 MALIBU HILLS ROAD CALABASAS HILLS CA 91301
Zurzolo Debby R officer: Exec VP, Gen Counsel & Secy PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: ZURZOLO DEBBY R a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Byfuglin Max S officer: President (Subsidiary) PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: BYFUGLIN MAX S a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}

Cheesecake Factory Headlines

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