The Cheesecake Factory DCF Stock Analysis

Here’s my assumptions for $CAKE ( ▲ 2.33% ) :

Risk Free Rate (10 Years Interest Rate Swap): 4.07%

Risk Premium (Taken from the Aswath Damodaran equity premium spreadsheet): 4.33%

Interest Rate Spread on The Risk free rate ( For the cost of debt calculation): 5%

Historical Data

Revenue growth in the last 10 years (CAGR): 5.48%

Earnings growth in the last 10 years (CAGR): 3.02%

Unlevered Free Cash Flow growth in the last 10 years (CAGR): 5.09%

Future Assumptions

End of Year FCF growth: 3%

Growth until end of 2026: 7%

Growth until end of 2034: 5%

Perpetual growth: 3%

Net Debt: 1.951B

Restricted Stock Units Present Value Assumption: $0.204B

Stock Valuation based on these assumptions: $36

Last update 08/16/2025

All the content in this newsletter should be taken as informational content only. THIS IS NOT FINANCIAL ADVICE! Do your own Due Diligence before investing or contact a professional financial advisor.

I don’t have a position in The Cheesecake Factory (CAKE) and I don’t plan to add a position in the coming days.