Based on the aggregated intelligence of 125,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, casual dining chain Cheesecake Factory (NASDAQ:CAKE) has received a distressing two-star ranking.

With that in mind, let's take a closer look at Cheesecake Factory's business, and see what CAPS investors are saying about the stock right now.

Cheesecake Factory facts

Headquarters (founded)

Calabasas Hills, California (1972)

Market Cap

$540.42 million



TTM Revenue

$1.61 billion


Chairman/CEO David Overton
CFO W. Douglas Benn

Net Income Growth (average, last five years and TTM)

3.2 and (27.8%)


Brinker International (NYSE:EAT),
Darden Restaurants (NYSE:DRI)

CAPS members bearish on CAKE also bearish on

Starbucks (NASDAQ:SBUX),
General Motors (NYSE:GM)

CAPS members bullish on CAKE also bullish on


Microsoft (NASDAQ:MSFT)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 49 of the 143 All-Star members who have rated Cheesecake Factory -- some 34% -- believe the stock will underperform the S&P 500 going forward. Among the bearish population are SuperPicks, ranked in the top 1% of our community, and juliehowe.

Last week, SuperPicks wrote that Cheesecake Factory is an "overextended, overexpanded company whose earnings are likely to fall significantly the next few years, and consequently lead to a collapse of the current stock price due to valuation & already institutional ownership."

In a pitch from late last month, juliehowe provides a few West Coast examples of Cheesecake's growth gone too far:

I really think [Cheesecake] will have a difficult time regaining lost market share. Cheesecake Factory is higher-end dining, the kind of place where regular people go for special occasions, and I think the stock price will take a hit for a long time, maybe as long as 2-4 years. It's also my impression that the chain opened way too many new locations in the past 10-12 years. I would expect that certain key locations-Warner Center in Los Angeles, will stay open. There's a huge business and financial district that feeds into that location. However, there are two Cheesecake Factory restaurants in San Jose, one in SF and another in Pleasanton. Some of those are probably going to end up closing down.

What do you think about Cheesecake Factory, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 125,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Starbucks and Microsoft are selections of Motley Fool Inside Value. Starbucks is also a choice of Stock Advisor, as is Apple. The Fool owns shares of Starbucks. The Fool's disclosure policy always gets a perfect score.