Is CHEESECAKE FACTORY INC (CAKE) Halal?

NASDAQ Consumer Cyclical United States $2.7B
✗ NOT HALAL
Confidence: 90/100
CHEESECAKE FACTORY INC (CAKE) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 69.2% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. CHEESECAKE FACTORY INC operates in the Consumer Cyclical sector.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 69.2%
/ 30%
7.0%
/ 30%
4.2%
/ 30%
2.25%
/ 5%
✗ NOT HALAL
DJIM 69.2%
/ 33%
7.0%
/ 33%
4.2%
/ 33%
2.25%
/ 5%
✗ NOT HALAL
MSCI 65.3%
/ 33%
6.6%
/ 33%
4.0%
/ 33%
2.25%
/ 5%
✗ NOT HALAL
S&P 69.2%
/ 33%
7.0%
/ 33%
4.2%
/ 33%
2.25%
/ 5%
✗ NOT HALAL
FTSE 65.3%
/ 33%
6.6%
/ 33%
4.0%
/ 50%
2.25%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
17.7
Forward: 12.2
EPS
$3.06
Dividend Yield
222.0%
Payout: 35.3%
P/B Ratio
6.1
EV/EBITDA
12.9
EV: $4.3B
Revenue
$3.8B
Growth: 4.4%
Beta
1.0
Average volatility
Current Ratio
0.6

Profitability

Gross Margin 40.4%
Operating Margin 7.0%
Net Margin 4.0%
Return on Equity (ROE) 33.7%
Return on Assets (ROA) 4.5%

Cash Flow & Balance Sheet

Operating Cash Flow$301M
Free Cash Flow$154M
Total Debt$2.1B
Debt-to-Equity488.0
Current Ratio0.6
Total Assets$3.3B

Price & Trading

Last Close$55.33
50-Day MA$60.26
200-Day MA$57.16
Avg Volume1.4M
Beta1.0
52-Week Range
$42.69
$69.70

About CHEESECAKE FACTORY INC (CAKE)

CEO
Mr. David M. Overton
Employees
48,400
Sector
Consumer Cyclical
Industry
Restaurants
Country
United States
Exchange
NASDAQ
Market Cap
$2.7B
Currency
USD

The Cheesecake Factory Incorporated operates and licenses restaurants in the United States and Canada. It operates bakeries that produce cheesecakes and other baked products for its restaurants, international licensees, third-party bakery customers, external foodservice operators, retailers, and distributors. The company operates restaurants under the brands comprising The Cheesecake Factory, North Italia, Flower Child, and Fox Restaurant Concepts. The Cheesecake Factory Incorporated was founded in 1972 and is headquartered in Calabasas, California.

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Frequently Asked Questions

Is CHEESECAKE FACTORY INC (CAKE) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), CHEESECAKE FACTORY INC is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is CHEESECAKE FACTORY INC's debt ratio?

CHEESECAKE FACTORY INC's debt ratio is 69.2% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 65.3%.

What are CHEESECAKE FACTORY INC's key financial metrics?

CHEESECAKE FACTORY INC has a market capitalization of $2.7B, trailing P/E ratio of 17.7, and revenue of $3.8B. The company maintains a gross margin of 40.4% and a net margin of 4.0%. Return on equity stands at 33.7%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.