Cheesecake Factory (NASDAQ:CAKE) Stock Price Expected to Rise, Wedbush Analyst Says

Cheesecake Factory (NASDAQ:CAKE) had its target price raised by Wedbush from $48.00 to $52.00 in a research report report published on Wednesday morning, Benzinga reports. Wedbush currently has an outperform rating on the restaurant operator’s stock. Wedbush also issued estimates for Cheesecake Factory’s Q4 2024 earnings at $0.87 EPS, Q4 2024 earnings at $0.91 EPS, FY2024 earnings at $3.30 EPS, Q1 2025 earnings at $0.90 EPS, Q2 2025 earnings at $1.21 EPS, Q3 2025 earnings at $0.62 EPS, Q4 2025 earnings at $0.98 EPS, Q4 2025 earnings at $1.04 EPS and FY2025 earnings at $3.71 EPS.

A number of other research firms also recently issued reports on CAKE. Stephens reiterated an “overweight” rating and issued a $50.00 price objective on shares of Cheesecake Factory in a report on Tuesday, October 22nd. Citigroup lifted their price objective on shares of Cheesecake Factory from $46.00 to $51.00 and gave the company a “buy” rating in a report on Friday, October 4th. Wells Fargo & Company raised their target price on shares of Cheesecake Factory from $36.00 to $38.00 and gave the company an “equal weight” rating in a research note on Thursday, August 1st. Bank of America raised their target price on shares of Cheesecake Factory from $45.00 to $47.00 and gave the company a “neutral” rating in a research note on Tuesday, October 22nd. Finally, Robert W. Baird raised their target price on shares of Cheesecake Factory from $40.00 to $47.00 and gave the company a “neutral” rating in a research note on Wednesday. Three research analysts have rated the stock with a sell rating, six have given a hold rating and four have given a buy rating to the company. According to data from MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $44.17.

Cheesecake Factory Stock Performance

Shares of CAKE stock opened at $45.82 on Wednesday. The company has a debt-to-equity ratio of 1.26, a quick ratio of 0.32 and a current ratio of 0.43. Cheesecake Factory has a 52 week low of $29.27 and a 52 week high of $49.75. The company has a market capitalization of $2.33 billion, a P/E ratio of 17.42, a price-to-earnings-growth ratio of 1.33 and a beta of 1.47. The company’s 50 day moving average price is $40.27 and its two-hundred day moving average price is $38.50.

Cheesecake Factory (NASDAQ:CAKE) last posted its quarterly earnings data on Tuesday, October 29th. The restaurant operator reported $0.58 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.47 by $0.11. Cheesecake Factory had a net margin of 3.63% and a return on equity of 45.66%. The company had revenue of $865.50 million for the quarter, compared to the consensus estimate of $866.13 million. During the same period last year, the company earned $0.39 earnings per share. The firm’s revenue was up 4.3% compared to the same quarter last year. On average, analysts expect that Cheesecake Factory will post 3.22 earnings per share for the current fiscal year.

Cheesecake Factory Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, November 26th. Shareholders of record on Wednesday, November 13th will be given a dividend of $0.27 per share. The ex-dividend date of this dividend is Wednesday, November 13th. This represents a $1.08 dividend on an annualized basis and a yield of 2.36%. Cheesecake Factory’s dividend payout ratio (DPR) is 41.06%.

Hedge Funds Weigh In On Cheesecake Factory

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in CAKE. Allspring Global Investments Holdings LLC boosted its position in Cheesecake Factory by 2,360.7% during the first quarter. Allspring Global Investments Holdings LLC now owns 689 shares of the restaurant operator’s stock worth $25,000 after purchasing an additional 661 shares during the period. GAMMA Investing LLC lifted its holdings in shares of Cheesecake Factory by 276.4% during the second quarter. GAMMA Investing LLC now owns 1,449 shares of the restaurant operator’s stock worth $57,000 after buying an additional 1,064 shares in the last quarter. nVerses Capital LLC acquired a new stake in shares of Cheesecake Factory during the second quarter worth $67,000. SG Americas Securities LLC acquired a new stake in shares of Cheesecake Factory during the first quarter worth $121,000. Finally, Avantax Advisory Services Inc. acquired a new stake in shares of Cheesecake Factory during the first quarter worth $202,000. 94.48% of the stock is owned by institutional investors.

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.