Zacks Research Issues Optimistic Forecast for CAKE Earnings

Key Points

• Zacks Research raised its Cheesecake Factory earnings forecast, lifting Q3 2026 EPS to $0.84 from $0.70 and maintaining a “Strong-Buy” rating. Its FY2027 EPS estimate is now $4.64, above the current-year consensus of $4.43.
• Cheesecake Factory’s latest quarter exceeded expectations, with EPS of $1.44 versus the $1.18 consensus and revenue of $1.03 billion. Revenue increased 7.7% year over year.
• Despite bullish earnings revisions, analysts’ average rating remains “Hold,” with an average price target of $81 versus the stock’s recent price near $113 and its 52-week high. Insiders also sold more than $18.4 million of shares during the latest quarter.

The Cheesecake Factory Incorporated (NASDAQ:CAKE - Free Report) - Research analysts at Zacks Research raised their Q3 2026 earnings estimates for shares of Cheesecake Factory in a research note issued to investors on Tuesday, August 11th. Zacks Research analyst Team now forecasts that the restaurant operator will earn $0.84 per share for the quarter, up from their previous estimate of $0.70. Zacks Research has a "Strong-Buy" rating on the stock. The consensus estimate for Cheesecake Factory's current full-year earnings is $4.43 per share. Zacks Research also issued estimates for Cheesecake Factory's Q4 2026 earnings at $1.03 EPS, Q1 2027 earnings at $1.09 EPS, Q2 2027 earnings at $1.45 EPS, Q3 2027 earnings at $0.89 EPS, Q4 2027 earnings at $1.21 EPS, FY2027 earnings at $4.64 EPS, Q1 2028 earnings at $1.33 EPS and Q2 2028 earnings at $1.51 EPS.

A number of other research firms also recently issued reports on CAKE. Bank of America boosted their target price on shares of Cheesecake Factory from $66.00 to $79.00 and gave the company a "neutral" rating in a research report on Thursday, July 2nd. Northcoast Research downgraded Cheesecake Factory from a "buy" rating to a "neutral" rating in a research report on Monday, June 15th. Argus lifted their price objective on Cheesecake Factory from $72.00 to $110.00 and gave the company a "buy" rating in a research note on Thursday, July 30th. JPMorgan Chase & Co. raised Cheesecake Factory from an "underweight" rating to a "neutral" rating and boosted their price objective for the company from $58.00 to $68.00 in a report on Thursday, May 14th. Finally, Mizuho upped their target price on Cheesecake Factory from $85.00 to $93.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 29th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, ten have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $81.00.

Cheesecake Factory Stock Up 1.7%

NASDAQ:CAKE opened at $113.06 on Wednesday. The firm has a market capitalization of $5.63 billion, a P/E ratio of 30.64, a PEG ratio of 2.01 and a beta of 1.00. Cheesecake Factory has a 1-year low of $43.07 and a 1-year high of $113.83. The company's fifty day moving average price is $83.66 and its 200-day moving average price is $68.58. The company has a debt-to-equity ratio of 1.08, a current ratio of 0.59 and a quick ratio of 0.52.

Cheesecake Factory (NASDAQ:CAKE - Get Free Report) last announced its quarterly earnings data on Tuesday, July 28th. The restaurant operator reported $1.44 EPS for the quarter, beating the consensus estimate of $1.18 by $0.26. The business had revenue of $1.03 billion during the quarter, compared to analysts' expectations of $999.54 million. Cheesecake Factory had a net margin of 4.61% and a return on equity of 43.97%. The business's quarterly revenue was up 7.7% compared to the same quarter last year. During the same period in the previous year, the business posted $1.16 EPS.

Cheesecake Factory Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, August 25th. Investors of record on Tuesday, August 11th will be given a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a yield of 1.1%. The ex-dividend date is Tuesday, August 11th. Cheesecake Factory's dividend payout ratio (DPR) is currently 32.52%.

Insider Activity at Cheesecake Factory

In other Cheesecake Factory news, EVP Scarlett May sold 7,978 shares of the company's stock in a transaction dated Friday, July 31st. The shares were sold at an average price of $102.66, for a total value of $819,021.48. Following the completion of the transaction, the executive vice president owned 18,241 shares in the company, valued at approximately $1,872,621.06. This represents a 30.43% 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, insider Ashley W. Hanscom sold 3,500 shares of the stock in a transaction dated Thursday, July 30th. The stock was sold at an average price of $100.00, for a total transaction of $350,000.00. Following the sale, the insider directly owned 7,541 shares in the company, valued at approximately $754,100. The trade was a 31.70% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 179,331 shares of company stock valued at $18,413,065 in the last quarter. 8.00% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Cheesecake Factory

Large investors have recently bought and sold shares of the business. Salomon & Ludwin LLC grew its holdings in Cheesecake Factory by 226.5% in the fourth quarter. Salomon & Ludwin LLC now owns 604 shares of the restaurant operator's stock valued at $33,000 after purchasing an additional 419 shares during the period. Allworth Financial LP acquired a new position in shares of Cheesecake Factory during the 2nd quarter worth approximately $36,000. Global Retirement Partners LLC raised its stake in shares of Cheesecake Factory by 661.7% during the 4th quarter. Global Retirement Partners LLC now owns 716 shares of the restaurant operator's stock worth $36,000 after buying an additional 622 shares during the period. NFSG Corp lifted its position in shares of Cheesecake Factory by 115.8% during the 1st quarter. NFSG Corp now owns 682 shares of the restaurant operator's stock valued at $37,000 after buying an additional 366 shares in the last quarter. Finally, Root Financial Partners LLC lifted its position in shares of Cheesecake Factory by 973.2% during the 4th quarter. Root Financial Partners LLC now owns 880 shares of the restaurant operator's stock valued at $44,000 after buying an additional 798 shares in the last quarter. Institutional investors and hedge funds own 94.48% of the company's stock.

Key Stories Impacting Cheesecake Factory

Here are the key news stories impacting Cheesecake Factory this week:

• Positive Sentiment: Zacks Research raised multiple earnings estimates and maintained a “Strong-Buy” rating. The firm increased its forecasts for Q3 2026 EPS to $0.84 from $0.70, Q4 2026 EPS to $1.03 from $0.97, Q2 2027 EPS to $1.45 from $1.28, Q3 2027 EPS to $0.89 from $0.74, and Q4 2027 EPS to $1.21 from $1.10. It also lifted its FY2027 forecast to $4.64 from $4.24, while raising Q1 and Q2 2028 estimates to $1.33 and $1.51, respectively. The revisions signal improving expectations for the restaurant operator’s future profitability.
• Positive Sentiment: Zacks’ FY2027 EPS forecast of $4.64 is above the current-year consensus estimate of $4.43, reinforcing the view that earnings growth could continue beyond the current fiscal year.
• Positive Sentiment: The company’s latest reported quarter also provides supportive momentum: Cheesecake Factory exceeded earnings and revenue expectations, posting $1.44 EPS on $1.03 billion in revenue, with revenue up 7.7% year over year.
• Neutral Sentiment: Reported short interest was listed at zero shares, producing a zero-day short-interest ratio. However, the figures appear inconsistent—the report describes a “significant increase” despite showing no shares—so the data provides little actionable information for investors.
• Negative Sentiment: Some brokerages set a price target of $81.00, well below the stock’s recent trading level near its 52-week high, indicating that valuation and downside risk may temper the bullish earnings revisions. Brokerages Set The Cheesecake Factory Incorporated Price Target at $81.00

About Cheesecake Factory

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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