Cheesecake Factory (NASDAQ:CAKE) Stock Rating Upgraded by Freedom Capital

Cheesecake Factory (NASDAQ:CAKE) was upgraded by research analysts at Freedom Capital from a “hold” rating to a “strong-buy” rating in a research note issued to investors on Wednesday, Zacks reports.

CAKE has been the topic of a number of other research reports. Weiss Ratings raised shares of Cheesecake Factory from a “buy (b)” rating to a “buy (b+)” rating in a research note on Thursday, October 8th. Oppenheimer increased their price objective on shares of Cheesecake Factory from $101.00 to $122.00 and gave the stock an “outperform” rating in a research report on Tuesday, October 6th. Wells Fargo & Company set a $116.00 price objective on shares of Cheesecake Factory in a report on Wednesday. Jefferies Financial Group lowered shares of Cheesecake Factory from a “buy” rating to a “hold” rating and raised their price objective for the stock from $75.00 to $88.00 in a report on Wednesday, July 29th. Finally, JPMorgan Chase & Co. boosted their price objective on shares of Cheesecake Factory from $92.00 to $105.00 and gave the company a “neutral” rating in a research report on Wednesday, August 26th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, twelve have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, Cheesecake Factory has an average rating of “Hold” and an average target price of $95.47.

Cheesecake Factory Stock Up 7.0%

NASDAQ:CAKE opened at $113.12 on Wednesday. Cheesecake Factory has a 1 year low of $43.07 and a 1 year high of $118.63. The stock has a 50-day moving average price of $107.90 and a two-hundred day moving average price of $79.42. The stock has a market cap of $5.63 billion, a price-to-earnings ratio of 26.81, a PEG ratio of 1.48 and a beta of 1.04. The company has a current ratio of 0.59, a quick ratio of 0.52 and a debt-to-equity ratio of 1.08.

Cheesecake Factory (NASDAQ:CAKE) last released its quarterly earnings results on Tuesday, October 27th. The restaurant operator reported $1.02 EPS for the quarter, topping analysts’ consensus estimates of $0.96 by $0.06. Cheesecake Factory had a return on equity of 46.95% and a net margin of 5.20%. The company had revenue of $1.03 billion for the quarter, compared to analyst estimates of $1.01 billion. During the same quarter last year, the firm posted $0.66 earnings per share. Cheesecake Factory’s revenue was up 13.9% compared to the same quarter last year. As a group, equities analysts expect that Cheesecake Factory will post 4.75 earnings per share for the current year.

Insider Buying and Selling at Cheesecake Factory

In other news, President David Gordon sold 31,950 shares of the stock in a transaction dated Monday, August 10th. The shares were 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 directly owned 26,875 shares in the company, valued at $2,957,056.25. This represents a 54.31% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Edie Ames sold 3,000 shares of the firm’s stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $106.95, for a total value of $320,850.00. Following the completion of the transaction, the director owned 10,000 shares of the company’s stock, valued at $1,069,500. The trade was a 23.08% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 131,176 shares of company stock valued at $14,068,161. Corporate insiders own 8.00% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of CAKE. Public Employees Retirement System of Ohio bought a new stake in shares of Cheesecake Factory in the 2nd quarter valued at about $2,367,000. Oppenheimer Asset Management Inc. acquired a new position in Cheesecake Factory during the second quarter worth approximately $2,606,000. Corient Private Wealth LP raised its stake in Cheesecake Factory by 269.9% in the second quarter. Corient Private Wealth LP now owns 100,951 shares of the restaurant operator’s stock valued at $8,030,000 after buying an additional 73,659 shares during the period. The Manufacturers Life Insurance Company bought a new stake in Cheesecake Factory in the second quarter valued at approximately $1,731,000. Finally, Headlands Technologies LLC lifted its position in shares of Cheesecake Factory by 29.7% in the second quarter. Headlands Technologies LLC now owns 42,640 shares of the restaurant operator’s stock valued at $3,392,000 after buying an additional 9,765 shares during the last quarter. 94.48% of the stock is currently owned by institutional investors.

Cheesecake Factory News Roundup

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

• Positive Sentiment: Strong traffic and earnings beat: Third-quarter revenue exceeded $1.033 billion, while flagship restaurant guest traffic increased 9.5%. CAKE reported $1.02 in EPS versus the $0.96 consensus estimate, and revenue grew 13.9% year over year. Cheesecake Factory: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Expansion supports the longer-term outlook: Management highlighted improving margins, strong traffic and plans to expand the Flower Child concept in 2027, although North Italia remains a challenge. CAKE Q3 Earnings Call Highlights Strong Traffic and 2027 Expansion
• Positive Sentiment: Some analyst support remains: Citigroup maintained a Buy rating while trimming its price target slightly to $127, implying upside from the referenced price level. Citigroup stock recommendations
• Neutral Sentiment: Dividend maintained: CAKE declared a $0.30-per-share quarterly dividend, or $1.20 annualized, with a stated yield of approximately 1.1%. The ex-dividend date is November 10.
• Negative Sentiment: Valuation concerns are weighing on shares: Stephens reaffirmed an Equal Weight rating with a $100 target, while UBS maintained a Sell rating and an $80 target, arguing that the stock’s valuation is stretched. The move below the 50-day average followed an analyst downgrade. Cheesecake Factory stock crosses below 50 day moving average
• Neutral Sentiment: Political attention is generating publicity but little direct financial impact: Multiple reports focused on Barack Obama’s jokes about the chain and the resulting political backlash. The coverage may increase brand visibility, but it does not change CAKE’s earnings outlook or fundamentals.

Cheesecake Factory Company Profile

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.