Wedbush Decreases Earnings Estimates for Cheesecake Factory

The Cheesecake Factory Incorporated (NASDAQ:CAKE) – Equities research analysts at Wedbush dropped their Q1 2025 earnings per share (EPS) estimates for Cheesecake Factory in a research note issued on Wednesday, October 30th. Wedbush analyst N. Setyan now anticipates that the restaurant operator will post earnings of $0.90 per share for the quarter, down from their prior estimate of $0.92. Wedbush currently has a “Outperform” rating and a $52.00 target price on the stock. The consensus estimate for Cheesecake Factory’s current full-year earnings is $3.21 per share. Wedbush also issued estimates for Cheesecake Factory’s Q2 2025 earnings at $1.21 EPS, Q3 2025 earnings at $0.62 EPS, Q4 2025 earnings at $0.98 EPS and FY2025 earnings at $3.71 EPS.

Several other equities analysts have also recently issued reports on CAKE. Barclays boosted their price target on Cheesecake Factory from $38.00 to $44.00 and gave the company an “underweight” rating in a research report on Wednesday. UBS Group boosted their price target on Cheesecake Factory from $32.00 to $36.00 and gave the company a “sell” rating in a research report on Friday, October 25th. Wells Fargo & Company lifted their price objective on Cheesecake Factory from $38.00 to $45.00 and gave the company an “equal weight” rating in a report on Wednesday. Citigroup lifted their price objective on Cheesecake Factory from $46.00 to $51.00 and gave the company a “buy” rating in a report on Friday, October 4th. Finally, JPMorgan Chase & Co. lowered their price objective on Cheesecake Factory from $40.00 to $38.00 and set an “underweight” rating on the stock in a report on Tuesday, August 6th. Three investment analysts have rated the stock with a sell rating, six have assigned a hold rating and five have given a buy rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $44.17.

Cheesecake Factory Stock Performance

Shares of CAKE stock opened at $46.22 on Thursday. The stock has a market capitalization of $2.36 billion, a PE ratio of 19.34, a price-to-earnings-growth ratio of 1.13 and a beta of 1.49. Cheesecake Factory has a 52-week low of $29.27 and a 52-week high of $49.75. The stock’s 50-day moving average price is $40.17 and its 200 day moving average price is $38.41. The company has a quick ratio of 0.32, a current ratio of 0.43 and a debt-to-equity ratio of 1.26.

Cheesecake Factory (NASDAQ:CAKE) last issued its quarterly earnings results on Tuesday, October 29th. The restaurant operator reported $0.58 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.47 by $0.11. The firm had revenue of $865.50 million for the quarter, compared to analysts’ expectations of $866.13 million. Cheesecake Factory had a return on equity of 43.62% and a net margin of 3.32%. The firm’s revenue for the quarter was up 4.3% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.39 EPS.

Institutional Investors Weigh In On Cheesecake Factory

Several institutional investors have recently modified their holdings of CAKE. American Century Companies Inc. boosted its stake in shares of Cheesecake Factory by 31.1% during the 2nd quarter. American Century Companies Inc. now owns 942,694 shares of the restaurant operator’s stock worth $37,038,000 after acquiring an additional 223,497 shares in the last quarter. JCP Investment Management LLC acquired a new stake in Cheesecake Factory during the 2nd quarter valued at $5,149,000. Earnest Partners LLC grew its holdings in Cheesecake Factory by 2.8% during the 2nd quarter. Earnest Partners LLC now owns 2,831,381 shares of the restaurant operator’s stock valued at $111,245,000 after buying an additional 76,578 shares during the last quarter. William Blair Investment Management LLC grew its holdings in Cheesecake Factory by 8.0% during the 2nd quarter. William Blair Investment Management LLC now owns 819,328 shares of the restaurant operator’s stock valued at $32,191,000 after buying an additional 60,545 shares during the last quarter. Finally, AXA S.A. grew its holdings in Cheesecake Factory by 103.1% during the 2nd quarter. AXA S.A. now owns 112,088 shares of the restaurant operator’s stock valued at $4,404,000 after buying an additional 56,889 shares during the last quarter. Hedge funds and other institutional investors own 94.48% of the company’s stock.

Cheesecake Factory Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, November 26th. Stockholders of record on Wednesday, November 13th will be paid a dividend of $0.27 per share. This represents a $1.08 annualized dividend and a dividend yield of 2.34%. The ex-dividend date of this dividend is Wednesday, November 13th. Cheesecake Factory’s dividend payout ratio (DPR) is 45.19%.

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.