Cheesecake Factory (NASDAQ:CAKE) Shares Gap Down on Analyst Downgrade

Posted by Brian Himes on Oct 30th, 2026

The Cheesecake Factory Incorporated (NASDAQ:CAKE – Get Free Report)’s stock price gapped down prior to trading on Wednesday after Zacks Research downgraded the stock from a strong-buy rating to a hold rating. The stock had previously closed at $108.47, but opened at $100.11. Cheesecake Factory shares last traded at $106.6430, with a volume of 698,755 shares traded.

A number of other research firms also recently weighed in on CAKE. Argus increased their price target on shares of Cheesecake Factory from $72.00 to $110.00 and gave the stock a “buy” rating in a research note on Thursday, July 30th. William Blair reiterated an “outperform” rating on shares of Cheesecake Factory in a report on Thursday. 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 note on Wednesday, August 26th. Oppenheimer upped their price objective on Cheesecake Factory from $101.00 to $122.00 and gave the stock an “outperform” rating in a report on Tuesday, October 6th. Finally, Weiss Ratings raised Cheesecake Factory from a “buy (b)” rating to a “buy (b+)” rating in a research report on Thursday, October 8th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, twelve have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $95.47.

Get Our Latest Research Report on Cheesecake Factory

Insider Buying and Selling at Cheesecake Factory

In other news, Director Edie Ames sold 3,000 shares of the firm’s stock in a transaction on Monday, August 10th. The shares were sold at an average price of $106.95, for a total value of $320,850.00. Following the transaction, the director owned 10,000 shares of the company’s stock, valued at approximately $1,069,500. This trade represents a 23.08% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Janice L. Meyer sold 1,958 shares of Cheesecake Factory 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 in the company, valued at $2,324,009.36. The trade was a 8.44% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 131,176 shares of company stock valued at $14,068,161 in the last ninety days. Corporate insiders own 8.00% of the company’s stock.

More Cheesecake Factory News

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.

Institutional Investors Weigh In On Cheesecake Factory

A number of large investors have recently modified their holdings of the stock. Dimensional Fund Advisors LP boosted its holdings in Cheesecake Factory by 2.4% in the first quarter. Dimensional Fund Advisors LP now owns 1,242,143 shares of the restaurant operator’s stock valued at $68,008,000 after purchasing an additional 29,037 shares during the last quarter. Bank of New York Mellon Corp acquired a new stake in Cheesecake Factory during the 2nd quarter valued at approximately $38,020,000. Bamco Inc. NY purchased a new stake in Cheesecake Factory during the 2nd quarter worth approximately $35,793,000. PDT Partners LLC acquired a new stake in shares of Cheesecake Factory during the second quarter worth approximately $13,743,000. Finally, TD Waterhouse Canada Inc. acquired a new stake in Cheesecake Factory in the third quarter valued at $13,792,000. Institutional investors and hedge funds own 94.48% of the company’s stock.

Cheesecake Factory Stock Up 7.0%

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 market capitalization 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 firm’s fifty day moving average is $107.90 and its 200-day moving average is $79.42.

Cheesecake Factory (NASDAQ:CAKE – Get Free Report) last announced its quarterly earnings data on Tuesday, October 27th. The restaurant operator reported $1.02 earnings per share for the quarter, topping the consensus estimate of $0.96 by $0.06. The company had revenue of $1.03 billion during the quarter, compared to analyst estimates of $1.01 billion. Cheesecake Factory had a net margin of 5.20% and a return on equity of 46.95%. The firm’s revenue for the quarter was up 13.9% compared to the same quarter last year. During the same period last year, the business earned $0.66 EPS. On average, sell-side analysts predict that The Cheesecake Factory Incorporated will post 4.75 earnings per share for the current 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 given 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 presently 32.52%.

Cheesecake Factory Company Profile

(Get Free Report)

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.