Jefferies Maintains CAKE Estimates

Following 1Q, Jefferies is maintaining its estimates on The Cheesecake Factory Incorporated CAKE. “EPS of $0.34 was a touch higher than consensus of $0.33 as SSS of 1.6% and cost efficiencies offset rising food cost inflation,” Jefferies writes. “Stock likely weak on incremental cost saves being incorporated into guidance. We believe it is getting incrementally more difficult for CAKE to beat expectations and that current EPS ests & 19x P/E does not fully reflect the potential risk of higher 2H commodity infl & more muted SSS trends.” Cheesecake Factory closed Wednesday at $30.60.