Wedbush Research Analysts Reduce Earnings Estimates for CAKE

The Cheesecake Factory Incorporated (NASDAQ:CAKE) – Investment analysts at Wedbush dropped their Q4 2024 earnings per share estimates for Cheesecake Factory in a research report issued to clients and investors on Friday, October 25th. Wedbush analyst N. Setyan now forecasts that the restaurant operator will earn $0.87 per share for the quarter, down from their prior forecast of $0.89. Wedbush has a “Outperform” rating and a $45.00 price objective on the stock. The consensus estimate for Cheesecake Factory’s current full-year earnings is $3.21 per share. Wedbush also issued estimates for Cheesecake Factory’s Q4 2025 earnings at $1.04 EPS.

Cheesecake Factory (NASDAQ:CAKE) last posted its quarterly earnings data on Wednesday, July 31st. The restaurant operator reported $1.09 EPS for the quarter, topping the consensus estimate of $1.00 by $0.09. Cheesecake Factory had a net margin of 3.32% and a return on equity of 43.62%. The company had revenue of $904.04 million during the quarter, compared to analyst estimates of $909.19 million. During the same period in the previous year, the firm earned $0.88 earnings per share. Cheesecake Factory’s quarterly revenue was up 4.4% compared to the same quarter last year.

Other analysts also recently issued research reports about the stock. Citigroup raised their price objective on shares of Cheesecake Factory from $46.00 to $51.00 and gave the stock a “buy” rating in a research note on Friday, October 4th. Robert W. Baird raised their price target on Cheesecake Factory from $37.00 to $40.00 and gave the stock a “neutral” rating in a research note on Thursday, August 1st. Wells Fargo & Company upped their price objective on Cheesecake Factory from $36.00 to $38.00 and gave the company an “equal weight” rating in a research report on Thursday, August 1st. Barclays lifted their target price on Cheesecake Factory from $35.00 to $38.00 and gave the stock an “underweight” rating in a research report on Tuesday, October 22nd. Finally, UBS Group upped their price target on shares of Cheesecake Factory from $32.00 to $36.00 and gave the stock a “sell” rating in a report on Friday. Three analysts have rated the stock with a sell rating, six have issued a hold rating and five have given a buy rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and an average target price of $41.67.

Cheesecake Factory Price Performance

CAKE stock opened at $42.04 on Monday. The stock has a market cap of $2.14 billion, a PE ratio of 19.28, a P/E/G ratio of 1.13 and a beta of 1.49. Cheesecake Factory has a 12 month low of $29.27 and a 12 month high of $43.51. The company has a 50-day moving average price of $39.66 and a 200 day moving average price of $38.17. The company has a current ratio of 0.43, a quick ratio of 0.32 and a debt-to-equity ratio of 1.26.

Hedge Funds Weigh In On Cheesecake Factory

Large investors have recently added to or reduced their stakes in the company. Earnest Partners LLC grew its position in shares of Cheesecake Factory by 2.8% in the 2nd quarter. Earnest Partners LLC now owns 2,831,381 shares of the restaurant operator’s stock worth $111,245,000 after buying an additional 76,578 shares during the last quarter. Dimensional Fund Advisors LP boosted its stake in Cheesecake Factory by 3.6% in the second quarter. Dimensional Fund Advisors LP now owns 1,241,272 shares of the restaurant operator’s stock valued at $48,772,000 after acquiring an additional 43,128 shares in the last quarter. American Century Companies Inc. grew its holdings in Cheesecake Factory by 31.1% in the second quarter. American Century Companies Inc. now owns 942,694 shares of the restaurant operator’s stock worth $37,038,000 after purchasing an additional 223,497 shares during the last quarter. William Blair Investment Management LLC increased its position in shares of Cheesecake Factory by 8.0% during the second quarter. William Blair Investment Management LLC now owns 819,328 shares of the restaurant operator’s stock worth $32,191,000 after purchasing an additional 60,545 shares in the last quarter. Finally, Natixis Advisors LLC lifted its holdings in shares of Cheesecake Factory by 0.7% during the 2nd quarter. Natixis Advisors LLC now owns 530,497 shares of the restaurant operator’s stock valued at $20,843,000 after purchasing an additional 3,872 shares during the last quarter. 94.48% of the stock is currently owned by institutional investors.

Cheesecake Factory Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, August 27th. Stockholders of record on Wednesday, August 14th were issued a $0.27 dividend. The ex-dividend date was Wednesday, August 14th. This represents a $1.08 dividend on an annualized basis and a dividend yield of 2.57%. Cheesecake Factory’s dividend payout ratio is presently 49.54%.

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.