Zacks Research Has Optimistic Outlook of CAKE Q3 Earnings

The Cheesecake Factory Incorporated (NASDAQ:CAKE) – Stock analysts at Zacks Research boosted their Q3 2026 EPS estimates for shares of Cheesecake Factory in a research note issued on Tuesday, August 11th. Zacks Research analyst Team now forecasts that the restaurant operator will post earnings per share of $0.84 for the quarter, up from their prior estimate of $0.70. Zacks Research has a “Strong-Buy” rating on the stock. The consensus estimate for Cheesecake Factory’s current full-year earnings is $4.43 per share. Zacks Research also issued estimates for Cheesecake Factory’s Q4 2026 earnings at $1.03 EPS, Q1 2027 earnings at $1.09 EPS, Q2 2027 earnings at $1.45 EPS, Q3 2027 earnings at $0.89 EPS, Q4 2027 earnings at $1.21 EPS, FY2027 earnings at $4.64 EPS, Q1 2028 earnings at $1.33 EPS and Q2 2028 earnings at $1.51 EPS.

Cheesecake Factory (NASDAQ:CAKE) last posted its quarterly earnings data on Tuesday, July 28th. The restaurant operator reported $1.44 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.18 by $0.26. Cheesecake Factory had a return on equity of 43.97% and a net margin of 4.61%.The company had revenue of $1.03 billion for the quarter, compared to analysts’ expectations of $999.54 million. During the same period in the previous year, the firm posted $1.16 EPS. Cheesecake Factory’s revenue was up 7.7% compared to the same quarter last year.

Several other brokerages have also recently commented on CAKE. Robert W. Baird boosted their price target on Cheesecake Factory from $65.00 to $90.00 and gave the stock a “neutral” rating in a research report on Wednesday, July 29th. Barclays raised their price objective on Cheesecake Factory from $58.00 to $60.00 and gave the company an “underweight” rating in a report on Thursday, April 30th. Mizuho lifted their target price on shares of Cheesecake Factory from $85.00 to $93.00 and gave the stock a “neutral” rating in a research note on Wednesday, July 29th. Northcoast Research lowered shares of Cheesecake Factory from a “buy” rating to a “neutral” rating in a report on Monday, June 15th. Finally, Jefferies Financial Group cut shares of Cheesecake Factory from a “buy” rating to a “hold” rating and increased their target price for the company from $75.00 to $88.00 in a research report on Wednesday, July 29th. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, ten have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $81.00.

Cheesecake Factory Stock Performance

NASDAQ CAKE opened at $113.06 on Wednesday. The company has a market cap of $5.63 billion, a PE ratio of 30.64, a price-to-earnings-growth ratio of 2.01 and a beta of 1.00. The stock’s 50 day simple moving average is $83.66 and its 200-day simple moving average is $68.58. Cheesecake Factory has a 1-year low of $43.07 and a 1-year high of $113.83. The company has a debt-to-equity ratio of 1.08, a current ratio of 0.59 and a quick ratio of 0.52.

Institutional Investors Weigh In On Cheesecake Factory

Hedge funds and other institutional investors have recently bought and sold shares of the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in Cheesecake Factory by 4.6% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 28,742 shares of the restaurant operator’s stock valued at $1,399,000 after purchasing an additional 1,268 shares during the last quarter. Woodline Partners LP increased its holdings in shares of Cheesecake Factory by 30.9% during the 1st quarter. Woodline Partners LP now owns 92,664 shares of the restaurant operator’s stock worth $4,509,000 after buying an additional 21,887 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in shares of Cheesecake Factory by 8.5% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 109,800 shares of the restaurant operator’s stock valued at $5,343,000 after buying an additional 8,592 shares during the period. Northwestern Mutual Wealth Management Co. raised its position in shares of Cheesecake Factory by 32.0% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 1,333 shares of the restaurant operator’s stock valued at $83,000 after buying an additional 323 shares during the period. Finally, First Trust Advisors LP lifted its holdings in Cheesecake Factory by 5.0% in the second quarter. First Trust Advisors LP now owns 112,020 shares of the restaurant operator’s stock valued at $7,019,000 after acquiring an additional 5,326 shares during the last quarter. 94.48% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity at Cheesecake Factory

In other Cheesecake Factory news, insider Ashley W. Hanscom sold 3,500 shares of the business’s stock in a transaction on Thursday, July 30th. The stock was sold at an average price of $100.00, for a total transaction of $350,000.00. Following the transaction, the insider owned 7,541 shares of the company’s stock, valued at approximately $754,100. The trade was a 31.70% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, EVP Scarlett May sold 7,978 shares of the company’s stock in a transaction on Friday, July 31st. The shares were sold at an average price of $102.66, for a total value of $819,021.48. Following the completion of the sale, the executive vice president owned 18,241 shares of the company’s stock, valued at approximately $1,872,621.06. The trade was a 30.43% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 179,331 shares of company stock valued at $18,413,065 in the last three months. Company insiders own 8.00% of the company’s stock.

Cheesecake Factory Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, August 25th. Investors of record on Tuesday, August 11th will be given a dividend of $0.30 per share. The ex-dividend date is Tuesday, August 11th. This represents a $1.20 dividend on an annualized basis and a yield of 1.1%. Cheesecake Factory’s dividend payout ratio (DPR) is presently 32.52%.

Key Cheesecake Factory News

Here are the key news stories impacting Cheesecake Factory this week:

• Positive Sentiment: Zacks Research raised multiple earnings estimates and maintained a “Strong-Buy” rating. The firm increased its forecasts for Q3 2026 EPS to $0.84 from $0.70, Q4 2026 EPS to $1.03 from $0.97, Q2 2027 EPS to $1.45 from $1.28, Q3 2027 EPS to $0.89 from $0.74, and Q4 2027 EPS to $1.21 from $1.10. It also lifted its FY2027 forecast to $4.64 from $4.24, while raising Q1 and Q2 2028 estimates to $1.33 and $1.51, respectively. The revisions signal improving expectations for the restaurant operator’s future profitability.
• Positive Sentiment: Zacks’ FY2027 EPS forecast of $4.64 is above the current-year consensus estimate of $4.43, reinforcing the view that earnings growth could continue beyond the current fiscal year.
• Positive Sentiment: The company’s latest reported quarter also provides supportive momentum: Cheesecake Factory exceeded earnings and revenue expectations, posting $1.44 EPS on $1.03 billion in revenue, with revenue up 7.7% year over year.
• Neutral Sentiment: Reported short interest was listed at zero shares, producing a zero-day short-interest ratio. However, the figures appear inconsistent—the report describes a “significant increase” despite showing no shares—so the data provides little actionable information for investors.
• Negative Sentiment: Some brokerages set a price target of $81.00, well below the stock’s recent trading level near its 52-week high, indicating that valuation and downside risk may temper the bullish earnings revisions. Brokerages Set The Cheesecake Factory Incorporated Price Target at $81.00

About Cheesecake Factory

The Cheesecake Factory Incorporated (NASDAQ:CAKE) is an American restaurant company and distributor renowned for its full-service casual-dining concept and specialty cheesecakes. Headquartered in Calabasas Hills, California, the company operates more than 200 restaurants under The Cheesecake Factory® brand across the United States, Puerto Rico and select international markets. In addition to sit-down dining, Cheesecake Factory franchised locations offer catering and take-out services, while a separate manufacturing arm supplies branded cheesecakes and desserts to supermarkets, hotels and other foodservice operators.

The origins of the brand trace back to a small cheesecake bakery founded in Detroit in the 1940s.