Cheesecake Factory (NASDAQ:CAKE) Shares Cross Below Fifty Day Moving Average After Analyst Downgrade

The Cheesecake Factory Incorporated (NASDAQ:CAKE) crossed below its 50 day moving average during trading on Wednesday after Citigroup lowered their price target on the stock from $128.00 to $127.00. The stock has a 50 day moving average of $107.75 and traded as low as $97.55. Citigroup currently has a buy rating on the stock. Cheesecake Factory shares last traded at $105.73, with a volume of 3,893,203 shares traded.

A number of other research analysts have also recently commented on the company. Morgan Stanley increased their target price on Cheesecake Factory from $80.00 to $87.00 and gave the company an “equal weight” rating in a research note on Thursday, October 15th. Zacks Research upgraded Cheesecake Factory from a “hold” rating to a “strong-buy” rating in a research report on Thursday, July 30th. Stephens reaffirmed an “equal weight” rating and set a $100.00 price target on shares of Cheesecake Factory in a research note on Wednesday. Mizuho upped their price objective on Cheesecake Factory from $93.00 to $110.00 and gave the stock a “neutral” rating in a report on Friday, October 23rd. Finally, Wells Fargo & Company set a $116.00 price objective on Cheesecake Factory in a research report on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, eleven have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, Cheesecake Factory currently has a consensus rating of “Hold” and a consensus price target of $95.47.

Insider Buying and Selling

In related news, Director Janice L. Meyer sold 1,958 shares of the stock in a transaction on Monday, August 17th. The shares were sold at an average price of $109.36, for a total transaction of $214,126.88. Following the transaction, the director owned 21,251 shares of the company’s stock, valued at approximately $2,324,009.36. This trade represents a 8.44% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, President David Gordon sold 31,950 shares of Cheesecake Factory stock in a transaction on Monday, August 10th. The stock was sold at an average price of $110.03, for a total transaction of $3,515,458.50. Following the completion of the transaction, the president owned 26,875 shares in the company, valued at approximately $2,957,056.25. The trade was a 54.31% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 213,749 shares of company stock worth $22,301,899 in the last ninety days. 8.00% of the stock is currently owned by insiders.

Trending Headlines about Cheesecake Factory

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

• Positive Sentiment: CAKE reported third-quarter earnings of $1.02 per share, ahead of the roughly $0.95–$0.96 consensus, while revenue reached $1.03 billion, above estimates near $1.00 billion. Revenue increased 13.9% year over year, with comparable sales at the namesake restaurants rising 15.2%. Cheesecake Factory Logs Higher Revenue After Double-Digit Growth at Namesake Restaurants
• Positive Sentiment: Management highlighted strong guest traffic, improving margins and expansion plans for Flower Child in 2027, supporting the company’s longer-term growth outlook despite softer performance at North Italia. CAKE Q3 Earnings Call Highlights Strong Traffic and 2027 Expansion
• Positive Sentiment: The company declared a quarterly dividend of $0.30 per share, or $1.20 annualized, offering a yield of approximately 1.1%.
• Neutral Sentiment: Citigroup maintained a Buy rating while trimming its target from $128 to $127. Stephens reaffirmed an Equal Weight rating with a $100 target, reflecting a divided analyst outlook. Citigroup CAKE rating
• Neutral Sentiment: Political commentary involving the Cheesecake Factory’s décor has generated extensive publicity and brand visibility, but the coverage has not introduced a material change to the company’s operations or financial outlook. What Does the Cheesecake Factory’s Designer Think of Obama and Trump’s Jabs at His Décor?
• Negative Sentiment: UBS maintained a Sell rating and an $80 price target, arguing that CAKE’s valuation looks stretched. Seeking Alpha commentary similarly said the strong results were overwhelmed by valuation and macroeconomic risks. Sell Rating Maintained on Cheesecake Factory

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. Money Concepts Capital Corp lifted its stake in shares of Cheesecake Factory by 3.8% in the 1st quarter. Money Concepts Capital Corp now owns 5,802 shares of the restaurant operator’s stock valued at $318,000 after acquiring an additional 210 shares during the last quarter. SBI Securities Co. Ltd. boosted its holdings in Cheesecake Factory by 28.2% during the 3rd quarter. SBI Securities Co. Ltd. now owns 1,146 shares of the restaurant operator’s stock valued at $121,000 after acquiring an additional 252 shares during the period. Root Financial Partners LLC purchased a new stake in Cheesecake Factory during the 3rd quarter valued at about $35,000. Carolina Wealth Advisors LLC bought a new position in Cheesecake Factory during the 3rd quarter worth approximately $36,000. Finally, NFSG Corp grew its position in Cheesecake Factory by 115.8% during the 1st quarter. NFSG Corp now owns 682 shares of the restaurant operator’s stock worth $37,000 after acquiring an additional 366 shares during the last quarter. Hedge funds and other institutional investors own 94.48% of the company’s stock.

Cheesecake Factory Trading Down 2.5%

The company has a debt-to-equity ratio of 1.08, a quick ratio of 0.52 and a current ratio of 0.59. The firm has a 50-day moving average of $107.75 and a 200-day moving average of $79.14. The firm has a market capitalization of $5.26 billion, a P/E ratio of 28.65, a price-to-earnings-growth ratio of 1.56 and a beta of 1.04.

Cheesecake Factory (NASDAQ:CAKE) last announced its quarterly earnings data on Tuesday, October 27th. The restaurant operator reported $1.02 earnings per share for the quarter, beating the consensus estimate of $0.96 by $0.06. Cheesecake Factory had a return on equity of 43.97% and a net margin of 4.61%. The firm had revenue of $1.03 billion during the quarter, compared to the consensus estimate of $1 billion. During the same quarter in the previous year, the company posted $0.66 earnings per share. The business’s revenue was up 13.9% on a year-over-year basis. On average, equities research analysts anticipate that The Cheesecake Factory Incorporated will post 4.71 EPS for the current fiscal year.

Cheesecake Factory Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, November 24th. Stockholders of record on Tuesday, November 10th will be issued a $0.30 dividend. The ex-dividend date is Tuesday, November 10th. This represents a $1.20 annualized dividend and a dividend yield of 1.1%. Cheesecake Factory’s dividend payout ratio (DPR) is currently 32.52%.

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.