Cheesecake Factory Analysts Slash Their Forecasts After Q3 Earnings

The Cheesecake Factory Incorporated (NASDAQ:CAKE) reported mixed results for the third quarter on Tuesday.

The company posted quarterly earnings of 68 cents per share which beat the analyst consensus estimate of 60 cents per share. The company reported quarterly sales of $907.226 million which missed the analyst consensus estimate of $912.784 million.

“We delivered another quarter of solid results, with revenue within our guidance range and earnings and profitability finishing above the high end of our expectations,” said David Overton, Chairman and Chief Executive Officer. “Performance was led by The Cheesecake Factory restaurants, delivering positive comparable sales results amid a more challenging and competitive environment, underscoring the strength and resilience of our namesake concept. Our operators once again executed exceptionally well, delivering year-over-year improvements in labor productivity, wage management, and hourly staff and manager retention, supporting healthy margin performance. New restaurant openings continue to perform well, and with two openings in the third quarter we remain on track to achieve our unit growth objective for the year.”

Cheesecake Factory shares fell 4.8% to trade at $51.73 on Wednesday.

These analysts made changes to their price targets on Cheesecake Factory following earnings announcement.

• Stephens & Co. analyst Jim Salera maintained Cheesecake Factory with an Overweight rating and lowered the price target from $70 to $64.
• B of A Securities analyst Katherine Griffin maintained Cheesecake Factory with a Neutral and lowered the price target from $61 to $56.

Considering buying CAKE stock? Here’s what analysts think:

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