Wedbush Reduces Earnings Estimates for Cheesecake Factory

The Cheesecake Factory Incorporated (NASDAQ:CAKE) – Wedbush lowered their FY2025 earnings per share estimates for shares of Cheesecake Factory in a research report issued on Thursday, February 20th. Wedbush analyst N. Setyan now forecasts that the restaurant operator will post earnings per share of $3.70 for the year, down from their previous estimate of $3.73. Wedbush currently has a “Outperform” rating and a $61.00 target price on the stock. The consensus estimate for Cheesecake Factory’s current full-year earnings is $3.71 per share. Wedbush also issued estimates for Cheesecake Factory’s Q4 2025 earnings at $1.25 EPS and Q4 2026 earnings at $1.44 EPS.

Cheesecake Factory (NASDAQ:CAKE) last issued its earnings results on Wednesday, February 19th. The restaurant operator reported $1.04 EPS for the quarter, beating analysts’ consensus estimates of $0.91 by $0.13. Cheesecake Factory had a return on equity of 45.89% and a net margin of 4.38%. The business had revenue of $920.96 million during the quarter, compared to analyst estimates of $912.67 million.

A number of other brokerages have also commented on CAKE. UBS Group boosted their price objective on Cheesecake Factory from $41.00 to $45.00 and gave the stock a “sell” rating in a report on Thursday. Piper Sandler upped their price objective on Cheesecake Factory from $47.00 to $51.00 and gave the company a “neutral” rating in a research note on Thursday. Citigroup reissued a “buy” rating on shares of Cheesecake Factory in a report on Tuesday, February 4th. William Blair reissued an “outperform” rating on shares of Cheesecake Factory in a report on Thursday. Finally, Bank of America upped their price target on shares of Cheesecake Factory from $47.00 to $49.00 and gave the stock a “neutral” rating in a report on Wednesday, October 30th. Four analysts have rated the stock with a sell rating, six have given a hold rating and eight have assigned a buy rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Hold” and an average price target of $52.19.

Cheesecake Factory Stock Performance

Shares of Cheesecake Factory stock opened at $54.65 on Monday. The company has a debt-to-equity ratio of 1.19, a current ratio of 0.44 and a quick ratio of 0.33. The business has a 50-day simple moving average of $51.16 and a 200 day simple moving average of $45.61. The firm has a market capitalization of $2.79 billion, a price-to-earnings ratio of 17.08, a PEG ratio of 1.31 and a beta of 1.51. Cheesecake Factory has a one year low of $33.05 and a one year high of $57.32.

Cheesecake Factory Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, March 18th. Shareholders of record on Wednesday, March 5th will be given a dividend of $0.27 per share. The ex-dividend date of this dividend is Wednesday, March 5th. This represents a $1.08 annualized dividend and a yield of 1.98%. Cheesecake Factory’s payout ratio is 33.75%.

Institutional Trading of Cheesecake Factory

Institutional investors have recently modified their holdings of the company. Golden State Wealth Management LLC purchased a new stake in shares of Cheesecake Factory during the fourth quarter worth about $25,000. Versant Capital Management Inc boosted its holdings in shares of Cheesecake Factory by 108.1% during the fourth quarter. Versant Capital Management Inc now owns 616 shares of the restaurant operator’s stock worth $29,000 after purchasing an additional 320 shares during the period. SBI Securities Co. Ltd. purchased a new stake in shares of Cheesecake Factory during the fourth quarter worth about $43,000. Venturi Wealth Management LLC boosted its holdings in shares of Cheesecake Factory by 1,149.5% during the fourth quarter. Venturi Wealth Management LLC now owns 1,312 shares of the restaurant operator’s stock worth $62,000 after purchasing an additional 1,207 shares during the period. Finally, KBC Group NV lifted its holdings in Cheesecake Factory by 46.9% in the fourth quarter. KBC Group NV now owns 2,321 shares of the restaurant operator’s stock worth $110,000 after buying an additional 741 shares during the period. 94.48% of the stock is currently owned by hedge funds and other 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.