Zacks Research Has Pessimistic Outlook of CAKE Q2 Earnings

Key Points

• Zacks Research lowered its Q2 2026 EPS estimate for Cheesecake Factory to $1.15 from $1.20, signaling a more cautious outlook ahead of the company’s next earnings report.
• Despite the downgrade, recent analyst sentiment remains mixed: the stock currently has an average rating of “Hold” and a consensus price target of $64.94, with several firms maintaining or raising their targets.
• Cheesecake Factory’s latest quarter beat expectations, posting $1.05 EPS on revenue of $978.83 million, while the company also announced a quarterly dividend of $0.30 per share.

The Cheesecake Factory Incorporated (NASDAQ:CAKE - Free Report) - Research analysts at Zacks Research reduced their Q2 2026 earnings per share (EPS) estimates for Cheesecake Factory in a report released on Wednesday, May 13th. Zacks Research analyst Team now forecasts that the restaurant operator will earn $1.15 per share for the quarter, down from their previous estimate of $1.20. The consensus estimate for Cheesecake Factory's current full-year earnings is $4.03 per share. Zacks Research also issued estimates for Cheesecake Factory's Q4 2026 earnings at $0.97 EPS, Q4 2027 earnings at $1.10 EPS, Q1 2028 earnings at $1.23 EPS and FY2028 earnings at $4.82 EPS.

Several other analysts have also issued reports on CAKE. Raymond James Financial lowered shares of Cheesecake Factory from an "outperform" rating to a "market perform" rating in a research report on Wednesday, January 21st. Weiss Ratings upgraded shares of Cheesecake Factory from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Monday, February 23rd. Citigroup upped their target price on shares of Cheesecake Factory from $75.00 to $76.00 and gave the company a "buy" rating in a report on Thursday, April 30th. Argus set a $72.00 target price on shares of Cheesecake Factory in a research note on Friday, May 1st. Finally, Oppenheimer lifted their price target on Cheesecake Factory from $68.00 to $72.00 and gave the stock an "outperform" rating in a report on Tuesday, April 21st. Six analysts have rated the stock with a Buy rating, nine have issued a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat.com, Cheesecake Factory currently has an average rating of "Hold" and a consensus price target of $64.94.

Cheesecake Factory Price Performance

NASDAQ:CAKE opened at $58.28 on Friday. The stock has a market capitalization of $2.90 billion, a PE ratio of 17.04, a P/E/G ratio of 1.35 and a beta of 1.04. Cheesecake Factory has a 1-year low of $43.07 and a 1-year high of $69.70. The firm has a fifty day simple moving average of $59.33 and a 200 day simple moving average of $55.86. The company has a current ratio of 0.59, a quick ratio of 0.53 and a debt-to-equity ratio of 1.22.

Cheesecake Factory (NASDAQ:CAKE - Get Free Report) last posted its quarterly earnings results on Wednesday, April 29th. The restaurant operator reported $1.05 earnings per share for the quarter, topping the consensus estimate of $1.03 by $0.02. Cheesecake Factory had a return on equity of 43.74% and a net margin of 4.34%.The firm had revenue of $978.83 million for the quarter, compared to analyst estimates of $964.57 million. During the same quarter in the previous year, the firm earned $0.93 EPS. The business's quarterly revenue was up 5.6% on a year-over-year basis.

Institutional Trading of Cheesecake Factory

Large investors have recently modified their holdings of the stock. Campbell & CO Investment Adviser LLC bought a new position in Cheesecake Factory in the 3rd quarter valued at about $2,743,000. Allspring Global Investments Holdings LLC raised its position in shares of Cheesecake Factory by 183.6% in the 4th quarter. Allspring Global Investments Holdings LLC now owns 133,921 shares of the restaurant operator's stock valued at $7,072,000 after buying an additional 86,705 shares in the last quarter. AlphaQuest LLC lifted its holdings in shares of Cheesecake Factory by 186.9% during the 3rd quarter. AlphaQuest LLC now owns 43,226 shares of the restaurant operator's stock worth $2,362,000 after acquiring an additional 28,159 shares during the period. 44 Wealth Management LLC bought a new stake in shares of Cheesecake Factory during the 3rd quarter worth approximately $1,366,000. Finally, American Century Companies Inc. boosted its position in shares of Cheesecake Factory by 5.6% during the 3rd quarter. American Century Companies Inc. now owns 1,800,388 shares of the restaurant operator's stock worth $98,373,000 after acquiring an additional 96,074 shares in the last quarter. 94.48% of the stock is owned by institutional investors and hedge funds.

Insiders Place Their Bets

In other Cheesecake Factory news, EVP Spero G. Alex sold 4,790 shares of the business's stock in a transaction dated Wednesday, February 25th. The shares were sold at an average price of $66.00, for a total value of $316,140.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CFO Matthew Eliot Clark sold 7,000 shares of the stock in a transaction that occurred on Wednesday, February 25th. The stock was sold at an average price of $65.70, for a total transaction of $459,900.00. Following the transaction, the chief financial officer owned 44,090 shares in the company, valued at approximately $2,896,713. The trade was a 13.70% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 124,582 shares of company stock valued at $7,684,016 in the last three months. Insiders own 8.00% of the company's stock.

Cheesecake Factory Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, May 26th. Stockholders of record on Wednesday, May 13th will be given a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a dividend yield of 2.1%. The ex-dividend date of this dividend is Wednesday, May 13th. Cheesecake Factory's payout ratio is presently 35.09%.

Cheesecake Factory Company Profile

The Cheesecake Factory Incorporated NASDAQ: CAKE is an American restaurant company and distributor renowned for its full-service casual-dining concept and specialty cheesecakes. Headquartered in Calabasas Hills, California, the company operates more than 200 restaurants under The Cheesecake Factory® brand across the United States, Puerto Rico and select international markets. In addition to sit-down dining, Cheesecake Factory franchised locations offer catering and take-out services, while a separate manufacturing arm supplies branded cheesecakes and desserts to supermarkets, hotels and other foodservice operators.

The origins of the brand trace back to a small cheesecake bakery founded in Detroit in the 1940s.

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