Zacks Research Has Positive Outlook of CAKE FY2025 Earnings

Key Points

• Zacks Research has increased its FY2025 earnings estimate for Cheesecake Factory to $3.74 per share, surpassing the previous estimate of $3.69.
• Cheesecake Factory reported $1.16 EPS for Q2, exceeding the consensus estimate of $1.06, with a 5.7% year-over-year revenue growth.
• The company announced a quarterly dividend of $0.27 per share, translating to an annualized dividend yield of 1.7%.

The Cheesecake Factory Incorporated (NASDAQ:CAKE - Free Report) - Equities research analysts at Zacks Research raised their FY2025 earnings estimates for shares of Cheesecake Factory in a research note issued on Tuesday, August 12th. Zacks Research analyst H. Ray now forecasts that the restaurant operator will post earnings of $3.74 per share for the year, up from their previous estimate of $3.69. 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 Q1 2026 earnings at $1.00 EPS and Q1 2027 earnings at $1.17 EPS.

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

Other analysts have also recently issued research reports about the stock. Citigroup cut their price objective on shares of Cheesecake Factory from $67.00 to $62.00 and set a "buy" rating on the stock in a report on Tuesday, April 15th. Oppenheimer lifted their price target on Cheesecake Factory from $65.00 to $75.00 and gave the company an "outperform" rating in a research note on Friday, July 11th. Bank of America lifted their price target on Cheesecake Factory from $61.00 to $67.00 and gave the company a "neutral" rating in a research note on Friday, July 18th. Morgan Stanley boosted 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. Finally, Argus set a $60.00 target price on Cheesecake Factory in a report on Wednesday, May 14th. Four equities research analysts have rated the stock with a sell rating, six have given a hold rating and seven have given a buy rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $61.75.

Cheesecake Factory Trading Up 1.3%

NASDAQ CAKE opened at $62.36 on Wednesday. Cheesecake Factory has a one year low of $35.12 and a one year high of $69.70. The firm has a 50 day simple moving average of $62.01 and a 200-day simple moving average of $54.89. The company has a debt-to-equity ratio of 1.40, a quick ratio of 0.42 and a current ratio of 0.51. The firm has a market cap of $3.11 billion, a price-to-earnings ratio of 19.19, a PEG ratio of 1.47 and a beta of 1.17.

Institutional Trading of Cheesecake Factory

Hedge funds and other institutional investors have recently modified their holdings of the company. Ameritas Advisory Services LLC purchased a new stake in shares of Cheesecake Factory during the second quarter worth $28,000. Parkside Financial Bank & Trust raised its holdings in shares of Cheesecake Factory by 39.2% during the second quarter. Parkside Financial Bank & Trust now owns 632 shares of the restaurant operator's stock worth $40,000 after acquiring an additional 178 shares in the last quarter. USA Financial Formulas purchased a new stake in shares of Cheesecake Factory during the first quarter worth $49,000. Golden State Wealth Management LLC raised its holdings in shares of Cheesecake Factory by 100.0% during the first quarter. Golden State Wealth Management LLC now owns 1,060 shares of the restaurant operator's stock worth $52,000 after acquiring an additional 530 shares in the last quarter. Finally, SBI Securities Co. Ltd. raised its holdings in shares of Cheesecake Factory by 38.5% during the first quarter. SBI Securities Co. Ltd. now owns 1,244 shares of the restaurant operator's stock worth $61,000 after acquiring an additional 346 shares in the last quarter. 94.48% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling

In related news, CFO Matthew Eliot Clark sold 42,900 shares of the stock in a transaction dated Tuesday, May 27th. The stock was sold at an average price of $56.00, for a total value of $2,402,400.00. Following the completion of the sale, the chief financial officer directly owned 40,878 shares of the company's stock, valued at approximately $2,289,168. This represents a 51.21% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Alexander L. Cappello sold 12,388 shares of the stock in a transaction dated Thursday, July 31st. The stock was sold at an average price of $65.88, for a total value of $816,121.44. Following the completion of the sale, the director directly owned 6,806 shares of the company's stock, valued at approximately $448,379.28. This represents a 64.54% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 145,388 shares of company stock worth $8,273,113 over the last quarter. 8.10% of the stock is currently owned by insiders.

Cheesecake Factory Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, August 26th. Stockholders of record on Tuesday, August 12th 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 1.7%. The ex-dividend date is Tuesday, August 12th. Cheesecake Factory's dividend payout ratio is 33.23%.

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.

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