Cheesecake Factory (NASDAQ:CAKE) Price Target Raised to $120.00

Cheesecake Factory (NASDAQ:CAKE) had its price target boosted by Robert W. Baird from $105.00 to $120.00 in a research report released on Thursday, MarketBeat Ratings reports. Robert W. Baird currently has a neutral rating on the restaurant operator’s stock.

Several other research analysts have also recently issued reports on the stock. Zacks Research raised shares of Cheesecake Factory from a “hold” rating to a “strong-buy” rating in a report on Thursday, July 30th. Mizuho raised their price objective on shares of Cheesecake Factory from $85.00 to $93.00 and gave the company a “neutral” rating in a research report on Wednesday, July 29th. Wells Fargo & Company lifted their price objective on Cheesecake Factory from $105.00 to $110.00 and gave the company an “equal weight” rating in a report on Wednesday. Bank of America boosted their target price on Cheesecake Factory from $66.00 to $79.00 and gave the stock a “neutral” rating in a research report on Thursday, July 2nd. Finally, JPMorgan Chase & Co. boosted their target price on Cheesecake Factory from $92.00 to $105.00 and gave the stock a “neutral” rating in a research report on Wednesday, August 26th. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, eleven have given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, Cheesecake Factory currently has a consensus rating of “Hold” and a consensus target price of $95.13.

Cheesecake Factory Price Performance

Shares of NASDAQ CAKE opened at $108.37 on Thursday. The company has a debt-to-equity ratio of 1.08, a current ratio of 0.59 and a quick ratio of 0.52. The stock has a fifty day moving average price of $107.73 and a 200 day moving average price of $86.42. Cheesecake Factory has a 1-year low of $43.07 and a 1-year high of $118.63. The company has a market cap of $5.39 billion, a PE ratio of 29.37, a P/E/G ratio of 1.74 and a beta of 1.04.

Cheesecake Factory (NASDAQ:CAKE) last posted its quarterly earnings data on Tuesday, July 28th. The restaurant operator reported $1.44 earnings per share for the quarter, beating analysts’ consensus estimates of $1.18 by $0.26. The firm had revenue of $1.03 billion for the quarter, compared to analyst estimates of $999.54 million. Cheesecake Factory had a net margin of 4.61% and a return on equity of 43.97%. Cheesecake Factory’s quarterly revenue was up 7.7% on a year-over-year basis. During the same period last year, the firm posted $1.16 EPS. Sell-side analysts forecast that Cheesecake Factory will post 4.69 EPS for the current year.

Insider Buying and Selling at Cheesecake Factory

In other news, insider Ashley Hanscom sold 3,500 shares of the firm’s stock in a transaction that occurred on Thursday, July 30th. The shares were sold at an average price of $100.00, for a total transaction of $350,000.00. Following the completion of the transaction, the insider directly owned 7,541 shares of the company’s stock, valued at $754,100. This trade represents a 31.70% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Matthew Clark sold 68,900 shares of Cheesecake Factory stock in a transaction that occurred on Thursday, July 30th. The stock was sold at an average price of $99.30, for a total value of $6,841,770.00. Following the transaction, the chief financial officer owned 45,109 shares of the company’s stock, valued at $4,479,323.70. This represents a 60.43% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 213,749 shares of company stock worth $22,301,899. 8.00% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Cheesecake Factory

A number of institutional investors have recently made changes to their positions in CAKE. Public Employees Retirement System of Ohio purchased a new position in Cheesecake Factory in the 2nd quarter valued at about $2,367,000. Oppenheimer Asset Management Inc. acquired a new stake in shares of Cheesecake Factory during the 2nd quarter worth about $2,606,000. Corient Private Wealth LP boosted its stake in shares of Cheesecake Factory by 269.9% during the 2nd quarter. Corient Private Wealth LP now owns 100,951 shares of the restaurant operator’s stock worth $8,030,000 after purchasing an additional 73,659 shares during the last quarter. Headlands Technologies LLC grew its holdings in shares of Cheesecake Factory by 29.7% during the second quarter. Headlands Technologies LLC now owns 42,640 shares of the restaurant operator’s stock worth $3,392,000 after buying an additional 9,765 shares in the last quarter. Finally, Lotus Technology Management LP purchased a new stake in shares of Cheesecake Factory during the second quarter worth about $1,870,000. 94.48% of the stock is owned by institutional investors and hedge funds.

More Cheesecake Factory News

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

• Positive Sentiment: Growth-focused coverage highlights CAKE’s solid operating and financial attributes, suggesting the restaurant chain could deliver attractive long-term returns. Cheesecake Factory is an Incredible Growth Stock: 3 Reasons Why
• Positive Sentiment: Wells Fargo was reported to see potential for meaningful appreciation in CAKE shares, while Robert W. Baird raised its price target to $120 from $105. Wells Fargo Forecasts Strong Price Appreciation Robert W. Baird rating update
• Neutral Sentiment: Analysts are preparing for third-quarter results, with expectations for higher sales, resilient guest traffic and continued restaurant expansion. The report will be important for confirming whether recent growth can offset rising labor and commodity costs. Cheesecake Factory Q3 earnings preview
• Neutral Sentiment: Mizuho raised its price target to $110 from $93 but retained a “neutral” rating, while Wells Fargo reaffirmed its “hold” recommendation. Baird also maintained a neutral stance, indicating analysts see a more balanced risk-reward profile at current valuation levels. Mizuho rating update Wells Fargo reaffirms hold rating
• Negative Sentiment: Cost inflation is the main near-term concern: higher labor and commodity expenses could compress margins even if sales and traffic remain healthy. In addition, Mizuho’s $110 target offers only modest upside, reinforcing concerns that strong growth expectations may already be reflected in CAKE’s valuation.

About Cheesecake Factory

The Cheesecake Factory Incorporated is a restaurant company best known for The Cheesecake Factory, a full-service casual dining brand offering an extensive menu of American and international-inspired dishes, along with a broad selection of cheesecakes and other desserts. The company also operates North Italia, an Italian restaurant concept, and owns Fox Restaurant Concepts, which develops and operates additional restaurant brands, including Flower Child and Culinary Dropout.

The company was founded by David Overton, who opened the first Cheesecake Factory restaurant in Beverly Hills, California, in 1978 after his parents began a cheesecake business.