Zacks Research Expects Lower Earnings for Cheesecake Factory

Key Points

• Zacks Research has reduced its Q4 2025 earnings per share (EPS) estimate for Cheesecake Factory from $1.14 to $1.09, amidst broader estimates for future quarters.
• Cheesecake Factory recently reported Q2 earnings of $1.16 EPS, surpassing analysts' estimates, with quarterly revenue growing by 5.7% year-over-year.
• The company declared a quarterly dividend of $0.27 per share, which reflects an annualized payout of $1.08 and a dividend yield of 1.7%.

The Cheesecake Factory Incorporated (NASDAQ:CAKE - Free Report) - Investment analysts at Zacks Research decreased their Q4 2025 earnings per share estimates for Cheesecake Factory in a research report issued on Tuesday, August 12th. Zacks Research analyst H. Ray now expects that the restaurant operator will post earnings per share of $1.09 for the quarter, down from their prior estimate of $1.14. The consensus estimate for Cheesecake Factory's current full-year earnings is $3.71 per share. Zacks Research also issued estimates for Cheesecake Factory's Q2 2026 earnings at $1.25 EPS, Q3 2026 earnings at $0.69 EPS, Q4 2026 earnings at $1.20 EPS, FY2026 earnings at $4.14 EPS, Q2 2027 earnings at $1.35 EPS and FY2027 earnings at $4.61 EPS.

Other equities research analysts have also recently issued research reports about the company. Argus set a $60.00 price target on Cheesecake Factory in a research note on Wednesday, May 14th. Piper Sandler boosted their price target on Cheesecake Factory from $54.00 to $62.00 and gave the company a "neutral" rating in a research note on Monday, August 4th. Raymond James Financial boosted their price target on Cheesecake Factory from $70.00 to $73.00 and gave the company an "outperform" rating in a research note on Friday. Robert W. Baird set a $64.00 target price on Cheesecake Factory and gave the stock a "neutral" rating in a research report on Wednesday, July 30th. Finally, Morgan Stanley upped their target price on Cheesecake Factory from $45.00 to $47.00 and gave the stock an "underweight" rating in a research report on Thursday, July 31st. Four analysts have rated the stock with a sell rating, six have issued a hold rating and seven have issued a buy rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $61.94.

Cheesecake Factory Stock Down 0.6%

NASDAQ:CAKE traded down $0.38 on Thursday, hitting $62.99. 976,388 shares of the company's stock traded hands, compared to its average volume of 1,784,113. The company has a current ratio of 0.51, a quick ratio of 0.42 and a debt-to-equity ratio of 1.40. Cheesecake Factory has a 1 year low of $35.40 and a 1 year high of $69.70. The firm has a 50-day moving average price of $62.40 and a 200-day moving average price of $55.12. The company has a market cap of $3.14 billion, a PE ratio of 19.38, a price-to-earnings-growth ratio of 1.50 and a beta of 1.17.

Cheesecake Factory (NASDAQ:CAKE - Get Free Report) last released its earnings results on Tuesday, July 29th. The restaurant operator reported $1.16 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.06 by $0.10. The firm had revenue of $955.83 million for the quarter, compared to analyst estimates of $945.82 million. Cheesecake Factory had a return on equity of 45.92% and a net margin of 4.33%. Cheesecake Factory's revenue was up 5.7% compared to the same quarter last year. During the same period in the previous year, the company earned $1.09 earnings per share.

Institutional Trading of Cheesecake Factory

Several institutional investors and hedge funds have recently modified their holdings of CAKE. LPL Financial LLC raised its stake in shares of Cheesecake Factory by 57.3% in the fourth quarter. LPL Financial LLC now owns 33,954 shares of the restaurant operator's stock worth $1,611,000 after purchasing an additional 12,370 shares during the last quarter. Russell Investments Group Ltd. increased its position in shares of Cheesecake Factory by 68.4% during the fourth quarter. Russell Investments Group Ltd. now owns 38,417 shares of the restaurant operator's stock valued at $1,823,000 after acquiring an additional 15,600 shares during the last quarter. Renaissance Technologies LLC grew its holdings in Cheesecake Factory by 1,231.8% during the fourth quarter. Renaissance Technologies LLC now owns 136,445 shares of the restaurant operator's stock valued at $6,473,000 after purchasing an additional 126,200 shares during the period. Rockefeller Capital Management L.P. boosted its holdings in shares of Cheesecake Factory by 6.6% in the fourth quarter. Rockefeller Capital Management L.P. now owns 115,183 shares of the restaurant operator's stock worth $5,464,000 after acquiring an additional 7,133 shares during the period. Finally, Summit Investment Advisors Inc. boosted its holdings in shares of Cheesecake Factory by 4.7% in the fourth quarter. Summit Investment Advisors Inc. now owns 5,051 shares of the restaurant operator's stock worth $240,000 after acquiring an additional 228 shares during the period. 94.48% of the stock is owned by hedge funds and other institutional investors.

Insider Transactions at Cheesecake Factory

In related news, EVP Scarlett May sold 18,800 shares of the company's stock in a transaction dated Monday, June 9th. The stock was sold at an average price of $58.82, for a total transaction of $1,105,816.00. Following the sale, the executive vice president owned 22,872 shares in the company, valued at $1,345,331.04. This represents a 45.11% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, President David M. Gordon sold 43,335 shares of the stock in a transaction that occurred on Thursday, August 14th. The stock was sold at an average price of $63.06, for a total value of $2,732,705.10. Following the completion of the transaction, the president owned 24,532 shares in the company, valued at approximately $1,546,987.92. The trade was a 63.85% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 188,723 shares of company stock worth $11,005,819. 8.40% of the stock is currently owned by insiders.

Cheesecake Factory Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, August 26th. Shareholders of record on Tuesday, August 12th will be given a $0.27 dividend. This represents a $1.08 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date is Tuesday, August 12th. Cheesecake Factory's payout ratio is 33.23%.

Cheesecake Factory Company Profile

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.