Cheesecake Factory (NASDAQ:CAKE) Price Target Raised to $110.00

Cheesecake Factory (NASDAQ:CAKE) had its target price increased by Mizuho from $93.00 to $110.00 in a report published on Friday morning, MarketBeat Ratings reports. Mizuho currently has a neutral rating on the restaurant operator’s stock.

Other equities analysts also recently issued research reports about the stock. Morgan Stanley raised their price target on shares of Cheesecake Factory from $80.00 to $87.00 and gave the company an “equal weight” rating in a research note on Thursday, October 15th. Wells Fargo & Company boosted their price objective on shares of Cheesecake Factory from $105.00 to $110.00 and gave the stock an “equal weight” rating in a research note on Wednesday, October 21st. UBS Group increased their price objective on Cheesecake Factory from $53.00 to $60.00 and gave the company a “sell” rating in a report on Thursday, July 23rd. Zacks Research raised Cheesecake Factory from a “hold” rating to a “strong-buy” rating in a research report on Thursday, July 30th. Finally, Oppenheimer raised their target price on Cheesecake Factory from $101.00 to $122.00 and gave the stock an “outperform” rating in a research report on Tuesday, October 6th. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, eleven have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Cheesecake Factory currently has an average rating of “Hold” and an average target price of $95.13.

Cheesecake Factory Stock Performance

Cheesecake Factory stock opened at $108.37 on Friday. The business has a 50 day moving average of $107.73 and a 200-day moving average of $86.63. The company has a market capitalization of $5.39 billion, a P/E ratio of 29.37, a P/E/G ratio of 1.56 and a beta of 1.04. Cheesecake Factory has a 1 year low of $43.07 and a 1 year high of $118.63. The company has a debt-to-equity ratio of 1.08, a current ratio of 0.59 and a quick ratio of 0.52.

Cheesecake Factory (NASDAQ:CAKE) last posted its earnings results on Tuesday, July 28th. The restaurant operator reported $1.44 EPS for the quarter, topping the consensus estimate of $1.18 by $0.26. Cheesecake Factory had a net margin of 4.61% and a return on equity of 43.97%. The business had revenue of $1.03 billion for the quarter, compared to the consensus estimate of $999.54 million. During the same period last year, the company earned $1.16 EPS. The firm’s revenue was up 7.7% compared to the same quarter last year. On average, equities research analysts predict that Cheesecake Factory will post 4.69 earnings per share for the current year.

Insider Buying and Selling at Cheesecake Factory

In other news, President David M. Gordon sold 31,950 shares of the business’s stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $110.03, for a total value of $3,515,458.50. Following 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Chairman David Overton sold 94,145 shares of the business’s stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $106.27, for a total transaction of $10,004,789.15. Following the completion of the transaction, the chairman owned 89,805 shares in the company, valued at $9,543,577.35. This trade represents a 51.18% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 213,749 shares of company stock worth $22,301,899. Company insiders own 8.00% of the company’s stock.

Institutional Investors Weigh In On Cheesecake Factory

A number of institutional investors have recently modified their holdings of the company. Dimensional Fund Advisors LP raised its stake in Cheesecake Factory by 2.4% during the first quarter. Dimensional Fund Advisors LP now owns 1,242,143 shares of the restaurant operator’s stock worth $68,008,000 after buying an additional 29,037 shares during the last quarter. Bank of New York Mellon Corp bought a new stake in Cheesecake Factory during the second quarter valued at $38,020,000. Bamco Inc. NY bought a new stake in Cheesecake Factory during the second quarter valued at $35,793,000. TD Waterhouse Canada Inc. acquired a new stake in Cheesecake Factory during the 3rd quarter worth about $13,792,000. Finally, PDT Partners LLC acquired a new stake in Cheesecake Factory during the 2nd quarter worth about $13,743,000. 94.48% of the stock is owned by institutional investors.

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.