William Blair Expects Weaker Earnings for Cheesecake Factory

The Cheesecake Factory Incorporated (NASDAQ:CAKE - Free Report) - Research analysts at William Blair reduced their FY2025 EPS estimates for shares of Cheesecake Factory in a research note issued to investors on Tuesday, July 22nd. William Blair analyst S. Zackfia now anticipates that the restaurant operator will earn $3.68 per share for the year, down from their previous estimate of $3.69. The consensus estimate for Cheesecake Factory's current full-year earnings is $3.71 per share. William Blair also issued estimates for Cheesecake Factory's Q4 2025 earnings at $1.12 EPS.

Several other analysts have also recently commented on CAKE. JPMorgan Chase & Co. upped their target price on Cheesecake Factory from $50.00 to $58.00 and gave the company an "underweight" rating in a report on Wednesday, June 25th. Citigroup dropped their price target on shares of Cheesecake Factory from $67.00 to $62.00 and set a "buy" rating on the stock in a research report on Tuesday, April 15th. UBS Group increased their price objective on shares of Cheesecake Factory from $45.00 to $50.00 and gave the stock a "sell" rating in a research report on Friday, July 18th. Wells Fargo & Company lifted their target price on shares of Cheesecake Factory from $50.00 to $60.00 and gave the stock an "equal weight" rating in a research note on Thursday, July 17th. Finally, Stephens reaffirmed an "overweight" rating and set a $60.00 price target on shares of Cheesecake Factory in a research report on Thursday, May 1st. Four investment analysts have rated the stock with a sell rating, six have assigned a hold rating and seven have issued a buy rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $59.38.

Cheesecake Factory Trading Up 0.5%

Shares of NASDAQ CAKE traded up $0.30 during trading on Thursday, reaching $65.78. The company had a trading volume of 1,189,272 shares, compared to its average volume of 1,336,888. The stock has a market cap of $3.26 billion, a P/E ratio of 20.62, a PEG ratio of 1.71 and a beta of 1.16. The company's fifty day moving average price is $59.94 and its 200-day moving average price is $53.77. The company has a quick ratio of 0.43, a current ratio of 0.53 and a debt-to-equity ratio of 1.85. Cheesecake Factory has a 12 month low of $33.50 and a 12 month high of $69.70.

Cheesecake Factory (NASDAQ:CAKE - Get Free Report) last posted its quarterly earnings data on Wednesday, April 30th. The restaurant operator reported $0.93 earnings per share for the quarter, beating analysts' consensus estimates of $0.81 by $0.12. The business had revenue of $927.20 million during the quarter, compared to the consensus estimate of $927.17 million. Cheesecake Factory had a return on equity of 46.06% and a net margin of 4.33%. Cheesecake Factory's quarterly revenue was up 4.0% on a year-over-year basis. During the same period in the prior year, the business posted $0.73 earnings per share.

Institutional Investors Weigh In On Cheesecake Factory

A number of hedge funds have recently modified their holdings of CAKE. Allspring Global Investments Holdings LLC raised its stake in shares of Cheesecake Factory by 32.1% in the second quarter. Allspring Global Investments Holdings LLC now owns 144,353 shares of the restaurant operator's stock valued at $9,195,000 after buying an additional 35,058 shares during the period. Vanguard Personalized Indexing Management LLC purchased a new stake in Cheesecake Factory in the 2nd quarter worth about $246,000. IFP Advisors Inc raised its stake in Cheesecake Factory by 392,466.7% in the 2nd quarter. IFP Advisors Inc now owns 11,777 shares of the restaurant operator's stock valued at $743,000 after acquiring an additional 11,774 shares during the period. Callan Family Office LLC purchased a new stake in Cheesecake Factory during the second quarter valued at about $637,000. Finally, Blair William & Co. IL boosted its position in Cheesecake Factory by 105.7% during the second quarter. Blair William & Co. IL now owns 10,639 shares of the restaurant operator's stock worth $667,000 after purchasing an additional 5,466 shares during the period. Institutional investors own 94.48% of the company's stock.

Insiders Place Their Bets

In other Cheesecake Factory news, CFO Matthew Eliot Clark sold 42,900 shares of Cheesecake Factory stock in a transaction dated Tuesday, May 27th. The shares were sold at an average price of $56.00, for a total value of $2,402,400.00. Following the sale, the chief financial officer owned 40,878 shares of the company's stock, valued at approximately $2,289,168. The trade was a 51.21% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Scarlett May sold 20,800 shares of the business's stock in a transaction dated Thursday, May 29th. The shares were sold at an average price of $56.02, for a total transaction of $1,165,216.00. Following the completion of the transaction, the executive vice president owned 22,872 shares in the company, valued at approximately $1,281,289.44. The trade was a 47.63% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 133,000 shares of company stock valued at $7,456,992. Insiders own 8.40% of the company's stock.

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.