Wedbush Equities Analysts Lower Earnings Estimates for CAKE

The Cheesecake Factory Incorporated (NASDAQ:CAKE) – Equities research analysts at Wedbush reduced their FY2025 earnings estimates for shares of Cheesecake Factory in a report released on Thursday, February 20th. Wedbush analyst N. Setyan now forecasts that the restaurant operator will post earnings of $3.70 per share for the year, down from their previous forecast of $3.73. Wedbush has a “Outperform” rating and a $61.00 price objective 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 released its quarterly earnings data on Wednesday, February 19th. The restaurant operator reported $1.04 EPS for the quarter, beating the consensus estimate of $0.91 by $0.13. Cheesecake Factory had a return on equity of 45.89% and a net margin of 4.38%. The company had revenue of $920.96 million during the quarter, compared to the consensus estimate of $912.67 million.

Other equities analysts have also recently issued research reports about the company. Raymond James lifted their price target on Cheesecake Factory from $51.00 to $56.00 and gave the stock an “outperform” rating in a report on Monday, December 16th. Jefferies Financial Group lifted their target price on Cheesecake Factory from $49.00 to $58.00 and gave the stock a “buy” rating in a research note on Monday, December 16th. Citigroup restated a “buy” rating on shares of Cheesecake Factory in a research note on Tuesday, February 4th. Bank of America lifted their price objective on shares of Cheesecake Factory from $47.00 to $49.00 and gave the stock a “neutral” rating in a research report on Wednesday, October 30th. Finally, Barclays increased their price objective on shares of Cheesecake Factory from $46.00 to $50.00 and gave the company an “underweight” rating in a research report on Thursday, February 20th. Four equities research analysts have rated the stock with a sell rating, six have assigned a hold rating and eight have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $52.19.

Cheesecake Factory Stock Performance

Shares of CAKE stock opened at $54.41 on Monday. The stock has a market cap of $2.78 billion, a P/E ratio of 17.00, a P/E/G ratio of 1.31 and a beta of 1.51. The company has a fifty day moving average price of $51.31 and a two-hundred day moving average price of $45.87. Cheesecake Factory has a one year low of $33.05 and a one year high of $57.32. The company has a debt-to-equity ratio of 1.19, a current ratio of 0.44 and a quick ratio of 0.33.

Hedge Funds Weigh In On Cheesecake Factory

Several hedge funds and other institutional investors have recently added to or reduced their stakes in CAKE. Foundations Investment Advisors LLC bought a new position in shares of Cheesecake Factory in the third quarter worth $227,000. New York State Teachers Retirement System increased its holdings in Cheesecake Factory by 5.5% in the 3rd quarter. New York State Teachers Retirement System now owns 77,660 shares of the restaurant operator’s stock valued at $3,149,000 after buying an additional 4,053 shares during the period. Oak Harvest Investment Services acquired a new position in shares of Cheesecake Factory in the 3rd quarter valued at approximately $345,000. Harbor Capital Advisors Inc. lifted its holdings in shares of Cheesecake Factory by 2.4% during the 3rd quarter. Harbor Capital Advisors Inc. now owns 23,110 shares of the restaurant operator’s stock worth $937,000 after acquiring an additional 532 shares during the period. Finally, Principal Financial Group Inc. boosted its position in shares of Cheesecake Factory by 9.6% during the 3rd quarter. Principal Financial Group Inc. now owns 255,595 shares of the restaurant operator’s stock worth $10,364,000 after acquiring an additional 22,416 shares in the last quarter. 94.48% of the stock is owned by institutional investors and hedge funds.

Cheesecake Factory Dividend Announcement

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

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.