Expert Outlook: Cheesecake Factory Through The Eyes Of 11 Analysts

Ratings for Cheesecake Factory CAKE were provided by 11 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $52.18, a high estimate of $64.00, and a low estimate of $40.00. Witnessing a positive shift, the current average has risen by 4.74% from the previous average price target of $49.82.

Deciphering Analyst Ratings: An In-Depth Analysis

A clear picture of Cheesecake Factory's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

| Analyst | Analyst Firm | Action Taken | Rating |Current Price Target| Prior Price Target | |--------------------|--------------------|---------------|---------------|--------------------|--------------------| |David Tarantino |Baird |Lowers |Neutral | $46.00|$50.00 | |John Ivankoe |JP Morgan |Lowers |Underweight | $48.00|$55.00 | |John Glass |Morgan Stanley |Raises |Underweight | $40.00|$37.00 | |Dennis Geiger |UBS |Raises |Sell | $45.00|$41.00 | |Zachary Fadem |Wells Fargo |Raises |Equal-Weight | $52.00|$45.00 | |Brian Mullan |Piper Sandler |Raises |Neutral | $51.00|$47.00 | |David Tarantino |Baird |Raises |Neutral | $57.00|$52.00 | |Jeffrey Bernstein |Barclays |Raises |Underweight | $50.00|$46.00 | |Nick Setyan |Wedbush |Raises |Outperform | $61.00|$59.00 | |Jim Salera |Stephens & Co. |Maintains |Overweight | $60.00|$60.00 | |Christine Cho |Goldman Sachs |Raises |Buy | $64.00|$56.00 |

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Cheesecake Factory. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Cheesecake Factory compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Cheesecake Factory's stock. This comparison reveals trends in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Cheesecake Factory's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Cheesecake Factory analyst ratings.

Unveiling the Story Behind Cheesecake Factory

Cheesecake Factory Inc owns and operates restaurants in the United States and Canada under brands that include The Cheesecake Factory, North Italia, and a collection within the Fox Restaurants Concepts subsidiary. The company's international presence, in the Middle East and Mexico, is through licensing agreements with third parties. The company also has a bakery division that produces cheesecakes and other baked products for sale in its restaurants, international licensees, and third-party bakery customers. The company has four operating business segments: The Cheesecake Factory restaurants, North Italia, other FRC, and Flower Child. Majority of the company's revenue comes from The Cheesecake Factory restaurants segment.

Breaking Down Cheesecake Factory's Financial Performance

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Revenue Growth: Cheesecake Factory's remarkable performance in 3M is evident. As of 31 December, 2024, the company achieved an impressive revenue growth rate of 5.01%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Net Margin: Cheesecake Factory's net margin is impressive, surpassing industry averages. With a net margin of 4.47%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Cheesecake Factory's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 9.8%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Cheesecake Factory's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.38% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: With a high debt-to-equity ratio of 4.3, Cheesecake Factory faces challenges in effectively managing its debt levels, indicating potential financial strain.

Understanding the Relevance of Analyst Ratings

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.