Cheesecake Factory (NASDAQ:CAKE – Get Free Report) was upgraded by stock analysts at Zacks Research from a “hold” rating to a “strong-buy” rating in a report issued on Thursday,Zacks.com reports.
Other equities analysts also recently issued research reports about the stock. Wells Fargo & Company boosted their target price on shares of Cheesecake Factory from $65.00 to $75.00 and gave the stock an “equal weight” rating in a research note on Thursday, July 16th. Citigroup raised their target price on Cheesecake Factory from $76.00 to $90.00 and gave the stock a “buy” rating in a research report on Friday, July 10th. Bank of America upped their price target on Cheesecake Factory from $66.00 to $79.00 and gave the company a “neutral” rating in a report on Thursday, July 2nd. Stephens restated a “positive” rating on shares of Cheesecake Factory in a research report on Wednesday. Finally, Oppenheimer increased their target price on shares of Cheesecake Factory from $91.00 to $101.00 and gave the company an “outperform” rating in a research report on Wednesday. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, eleven have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $79.81.
Read Our Latest Report on Cheesecake Factory
Cheesecake Factory Trading Up 0.1%
Cheesecake Factory (NASDAQ:CAKE – Get Free Report) last announced its quarterly earnings data on Tuesday, July 28th. The restaurant operator reported $1.44 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.18 by $0.26. Cheesecake Factory had a return on equity of 45.94% and a net margin of 4.61%.The business had revenue of $1.03 billion during the quarter, compared to analysts’ expectations of $999.54 million. During the same quarter last year, the business posted $1.16 EPS. The business’s quarterly revenue was up 7.7% compared to the same quarter last year. Sell-side analysts expect that Cheesecake Factory will post 4.38 earnings per share for the current fiscal year.
Insider Buying and Selling
In related news, insider Ashley W. Hanscom sold 3,500 shares of Cheesecake Factory stock in a transaction on Thursday, July 30th. The shares were sold at an average price of $100.00, for a total value of $350,000.00. Following the transaction, the insider directly owned 7,541 shares in the company, valued at $754,100. This trade represents a 31.70% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Alexander L. Cappello sold 2,490 shares of the company’s stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $64.90, for a total transaction of $161,601.00. Following the transaction, the director owned 6,171 shares of the company’s stock, valued at approximately $400,497.90. The trade was a 28.75% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 74,890 shares of company stock valued at $7,353,371 over the last three months. 8.00% of the stock is currently owned by company insiders.
Hedge Funds Weigh In On Cheesecake Factory
Large investors have recently modified their holdings of the business. Woodline Partners LP boosted its stake in shares of Cheesecake Factory by 1,059.3% in the third quarter. Woodline Partners LP now owns 618,056 shares of the restaurant operator’s stock valued at $33,771,000 after buying an additional 564,744 shares in the last quarter. Invesco Ltd. raised its position in Cheesecake Factory by 24.7% in the third quarter. Invesco Ltd. now owns 2,057,118 shares of the restaurant operator’s stock worth $112,401,000 after acquiring an additional 407,223 shares in the last quarter. Millennium Management LLC lifted its holdings in Cheesecake Factory by 214.3% in the fourth quarter. Millennium Management LLC now owns 512,085 shares of the restaurant operator’s stock valued at $25,850,000 after acquiring an additional 349,168 shares during the period. Engineers Gate Manager LP lifted its holdings in Cheesecake Factory by 1,583.7% in the fourth quarter. Engineers Gate Manager LP now owns 287,219 shares of the restaurant operator’s stock valued at $14,499,000 after acquiring an additional 270,160 shares during the period. Finally, Voloridge Investment Management LLC boosted its position in shares of Cheesecake Factory by 54.0% during the 3rd quarter. Voloridge Investment Management LLC now owns 747,046 shares of the restaurant operator’s stock worth $40,819,000 after purchasing an additional 262,081 shares in the last quarter. 94.48% of the stock is owned by hedge funds and other institutional investors.
Key Cheesecake Factory News
Here are the key news stories impacting Cheesecake Factory this week:
- Positive Sentiment: Record quarterly performance: Cheesecake Factory reported its first quarter with revenue above $1 billion, alongside earnings and revenue that exceeded Wall Street expectations. Revenue increased 7.7% year over year, reinforcing the view that stronger traffic and execution are driving the core brand. Cheesecake Factory quarterly revenues surpass $1B for the first time
- Positive Sentiment: Improved analyst outlook: Zacks added CAKE to its Rank #1, or “Strong Buy,” list, citing favorable earnings-estimate revisions. A separate analysis said stronger namesake-brand traffic, menu innovation, digital engagement and brand expansion could support continued growth. Why Cheesecake Factory Might Be Well Poised for a Surge
- Positive Sentiment: Broader bullish sentiment: Seeking Alpha upgraded the stock to Buy after noting improved core traffic, while Stephens and Robert W. Baird raised their price targets. These actions reinforce investor confidence following the earnings beat. The Cheesecake Factory: Core Traffic Improved
- Neutral Sentiment: Customer engagement initiatives: National Cheesecake Day promotions, including half-price slices and a new brownie-toffee flavor, may support near-term traffic and brand visibility, but their effect on earnings is likely limited. The Cheesecake Factory celebrates National Cheesecake Day
- Negative Sentiment: Large insider sale: CFO Matthew Eliot Clark sold 68,900 shares for approximately $6.8 million after exercising options, reducing his direct stake by about 60%. Another insider sold 3,500 shares for $350,000. The transactions may raise caution because they occurred near record highs, although insider sales can also reflect diversification or scheduled compensation activity. What This Cheesecake Factory Insider Sale Means
- Negative Sentiment: Valuation and execution risks: CAKE has more than doubled during 2026, making its valuation richer. Investors are also watching softer North Italia demand and inflation-driven margin pressure, which could challenge the sustainability of the rally. Is CAKE Stock Still Attractive After Its Powerful 2026 Rally?
Cheesecake Factory Company Profile
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.
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