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Cheesecake Factory (Cheesecake Factory) Owner Earnings per Share (TTM) : 1.66 (As of Mar. 2024)


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What is Cheesecake Factory Owner Earnings per Share (TTM)?

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

Cheesecake Factory's Owner Earnings per Share (TTM) ended in Mar. 2024 was $1.66. It's Price-to-Owner-Earnings ratio for today is 22.87.


The historical rank and industry rank for Cheesecake Factory's Owner Earnings per Share (TTM) or its related term are showing as below:

CAKE' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 5.74   Med: 18.88   Max: 63
Current: 22.85


During the past 13 years, the highest Price-to-Owner-Earnings ratio of Cheesecake Factory was 63.00. The lowest was 5.74. And the median was 18.88.


CAKE's Price-to-Owner-Earnings is ranked worse than
73.1% of 171 companies
in the Restaurants industry
Industry Median: 11.72 vs CAKE: 22.85

Cheesecake Factory's Earnings per Share (Diluted) for the three months ended in Mar. 2024 was $0.68. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2024 was $2.18. It's PE Ratio ratio for today is 17.42.

Cheesecake Factory's EPS without NRI for the three months ended in Mar. 2024 was $0.73. Its EPS without NRI for the trailing twelve months (TTM) ended in Mar. 2024 was $2.80. It's PE Ratio without NRI ratio for today is 13.56.


Cheesecake Factory Owner Earnings per Share (TTM) Historical Data

The historical data trend for Cheesecake Factory's Owner Earnings per Share (TTM) 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 Owner Earnings per Share (TTM) Chart

Cheesecake Factory Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Owner Earnings per Share (TTM)
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.76 -7.02 1.90 0.67 1.79

Cheesecake Factory Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Owner Earnings per Share (TTM) 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 1.25 0.90 1.62 1.79 1.66

Competitive Comparison of Cheesecake Factory's Owner Earnings per Share (TTM)

For the Restaurants subindustry, Cheesecake Factory's Price-to-Owner-Earnings, along with its competitors' market caps and Price-to-Owner-Earnings 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 Price-to-Owner-Earnings Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Cheesecake Factory's Price-to-Owner-Earnings distribution charts can be found below:

* The bar in red indicates where Cheesecake Factory's Price-to-Owner-Earnings falls into.



Cheesecake Factory Owner Earnings per Share (TTM) Calculation

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume. (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

To make it simple, then you will have:

Owner Earnings per Share (TTM) = (Net Income + Depreciation, Depletion and Amortization + Change In Deferred Tax - 5Y Average of Maintenance Capital Expenditure + Change In Working Capital) / Shares Outstanding (Diluted Average)

Cheesecake Factory's Owner Earnings per Share (TTM) Calculation:

TTM / Last Quarter Average of Last 20 Quarters
Net Income 106
Depreciation, Depletion and Amortization 95
Change In Deferred Tax -16
5Y Average of Maintenance Capital Expenditure 84
Change In Working Capital -21
Shares Outstanding (Diluted Average) 49

1. Start with "Net Income" from income statement. Cheesecake Factory's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was $106 Mil.

2. "Depreciation, Depletion and Amortization" is from cashflow statement. Cheesecake Factory's Depreciation, Depletion and Amortization for the trailing twelve months (TTM) ended in Mar. 2024 was $95 Mil. This needs to be added back because company does not actually need to pay cash for it. It is a non-cash item.

3. Other non-cash charges usually include "Stock Based Compensation" and "Change In Deferred Tax":
However, to be conservative, GuruFocus will not add Stock Based Compensation back to net income. Cheesecake Factory's Change In Deferred Tax for the trailing twelve months (TTM) ended in Mar. 2024 was $-16 Mil.

4. Average maintenance capital expenditure over a business/industry cycle: 5-Year Average Maintenance Capital Expenditure = $84 Mil

It is usually best to take a long-term average of maintenance capital expenditure. Ideally this would be as long as 10 years and include at least one economic downturn. However, since many companies do not have as long as 10-year history, here GuruFocus uses the latest 5 years data to do the calculation. To smooth out unusual years but reflect recent developments, we take an average of the 5 year maintenance capital expenditure.

The following shows how to get maintenance capital expenditure.

First, calculate the revenue change regarding to the previous quarter. If the revenue decreased from the previous quarter, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
Second, if the revenue increased from the previous quarter, then calculate the percentage of Net PPE as of corresponding Revenue.
Growth Capital Expenditure = Percentage of Property, Plant and Equipment as of corresponding Revenue * Revenue Increase
Third, calculate Capital Expenditure (positive) - Growth Capital Expenditure.
If [Capital Expenditure (positive) - Growth Capital Expenditure] was negative, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
If [Capital Expenditure (positive) - Growth Capital Expenditure] was positive, then the Maintenance Capital Expenditure = Capital Expenditure (positive) - Growth Capital Expenditure.
Fourth, get the average of the 5 years maintenance capital expenditure.

Cheesecake Factory's 5-Year Average Maintenance Capital Expenditure = $84 Mil

5. "Change In Working Capital" is from cashflow statement. Cheesecake Factory's Change In Working Capital for the trailing twelve months (TTM) ended in Mar. 2024 was $-21 Mil.
Note: GuruFocus' Change in Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And sometimes it includes non-current parts of assets and liabilities.

6. Cheesecake Factory's Shares Outstanding (Diluted Average) for the months ended in Mar. 2024 was 48.662 Mil.

Cheesecake Factory's Onwer Earnings Per Share for Mar. 2024 is calculated as:

Owner Earnings per Share (TTM)
=( Net Income+Depreciation, Depletion and Amortization+Change In Deferred Tax
=( 106.492 +94.937+-15.901
-5Y Avg of Maintenance CAPEX+Change In Working Capital )/Shares Outstanding (Diluted Average)
-83.832210742143+-20.804)/48.662
=1.66

Price-to-Owner-Earnings=Current Price/Owner Earnings per Share (TTM)
=37.97/1.66
=22.87

* 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.


Be Aware

Assumption: Companies usually do not report maintenance capital expenditures and growth capital expenditures separately. Here we use estimated numbers and average them over 5 years. The method to estimate maintenance capital expenditures can be found in above part 4.

Note: GuruFocus' Change In Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And it includes non-current parts of assets and liabilities.


Cheesecake Factory Owner Earnings per Share (TTM) Related Terms

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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