Zacks Research Issues Optimistic Estimate for CAKE Earnings

The Cheesecake Factory Incorporated (NASDAQ:CAKE) – Analysts at Zacks Research increased their FY2024 EPS estimates for Cheesecake Factory in a research note issued to investors on Tuesday, November 12th. Zacks Research analyst H. Ray now expects that the restaurant operator will post earnings of $3.30 per share for the year, up from their previous forecast of $3.23. The consensus estimate for Cheesecake Factory’s current full-year earnings is $3.30 per share. Zacks Research also issued estimates for Cheesecake Factory’s Q4 2024 earnings at $0.90 EPS, Q1 2025 earnings at $0.85 EPS, Q2 2025 earnings at $1.15 EPS, Q3 2025 earnings at $0.56 EPS, Q4 2025 earnings at $0.97 EPS, FY2025 earnings at $3.52 EPS, Q1 2026 earnings at $0.89 EPS, Q2 2026 earnings at $1.23 EPS, Q3 2026 earnings at $0.64 EPS and FY2026 earnings at $3.74 EPS.

Cheesecake Factory (NASDAQ:CAKE) last issued its quarterly earnings data on Tuesday, October 29th. The restaurant operator reported $0.58 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.47 by $0.11. The firm had revenue of $865.50 million during the quarter, compared to analysts’ expectations of $866.13 million. Cheesecake Factory had a net margin of 3.63% and a return on equity of 43.90%. Cheesecake Factory’s revenue for the quarter was up 4.3% on a year-over-year basis. During the same period in the prior year, the company posted $0.39 earnings per share.

Several other equities research analysts have also weighed in on CAKE. UBS Group boosted their target price on Cheesecake Factory from $32.00 to $36.00 and gave the stock a “sell” rating in a report on Friday, October 25th. Barclays upped their price objective on shares of Cheesecake Factory from $38.00 to $44.00 and gave the stock an “underweight” rating in a report on Wednesday, October 30th. Bank of America boosted their target price on shares of Cheesecake Factory from $47.00 to $49.00 and gave the stock a “neutral” rating in a research report on Wednesday, October 30th. StockNews.com downgraded Cheesecake Factory from a “buy” rating to a “hold” rating in a research report on Tuesday. Finally, Robert W. Baird boosted their price objective on Cheesecake Factory from $40.00 to $47.00 and gave the stock a “neutral” rating in a research report on Wednesday, October 30th. Three analysts have rated the stock with a sell rating, seven have given a hold rating and four have assigned a buy rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $44.75.

Cheesecake Factory Price Performance

Shares of NASDAQ:CAKE opened at $48.10 on Thursday. The company has a debt-to-equity ratio of 1.19, a current ratio of 0.44 and a quick ratio of 0.33. The stock has a market capitalization of $2.46 billion, a P/E ratio of 18.29, a P/E/G ratio of 1.32 and a beta of 1.47. The business has a 50-day moving average of $41.70 and a two-hundred day moving average of $39.30. Cheesecake Factory has a fifty-two week low of $30.96 and a fifty-two week high of $50.75.

Cheesecake Factory Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, November 26th. Stockholders of record on Wednesday, November 13th will be given a dividend of $0.27 per share. This represents a $1.08 dividend on an annualized basis and a dividend yield of 2.25%. The ex-dividend date is Wednesday, November 13th. Cheesecake Factory’s dividend payout ratio is presently 41.06%.

Insider Activity at Cheesecake Factory

In related news, insider Keith Carango sold 13,095 shares of the company’s stock in a transaction dated Wednesday, November 6th. The shares were sold at an average price of $49.88, for a total value of $653,178.60. Following the sale, the insider now owns 14,977 shares of the company’s stock, valued at $747,052.76. The trade was a 46.65 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. 8.10% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Cheesecake Factory

A number of institutional investors have recently added to or reduced their stakes in the stock. American Century Companies Inc. raised its holdings in shares of Cheesecake Factory by 31.1% in the 2nd quarter. American Century Companies Inc. now owns 942,694 shares of the restaurant operator’s stock worth $37,038,000 after buying an additional 223,497 shares in the last quarter. JCP Investment Management LLC bought a new stake in Cheesecake Factory in the second quarter valued at $5,149,000. Victory Capital Management Inc. raised its stake in Cheesecake Factory by 32.7% during the third quarter. Victory Capital Management Inc. now owns 403,271 shares of the restaurant operator’s stock worth $16,353,000 after acquiring an additional 99,341 shares in the last quarter. Earnest Partners LLC lifted its holdings in shares of Cheesecake Factory by 2.8% during the second quarter. Earnest Partners LLC now owns 2,831,381 shares of the restaurant operator’s stock valued at $111,245,000 after acquiring an additional 76,578 shares during the period. Finally, William Blair Investment Management LLC boosted its stake in shares of Cheesecake Factory by 8.0% in the 2nd quarter. William Blair Investment Management LLC now owns 819,328 shares of the restaurant operator’s stock valued at $32,191,000 after purchasing an additional 60,545 shares in the last quarter. 94.48% of the stock is owned by institutional investors and hedge funds.

About Cheesecake Factory

The Cheesecake Factory Incorporated operates and licenses restaurants in the United States and Canada. The company operates bakeries that produce cheesecakes and other baked products for its restaurants, international licensees, third-party bakery customers, external foodservice operators, retailers, and distributors.