Cheesecake Factory (NASDAQ:CAKE) Upgraded at Zacks Research

Cheesecake Factory (NASDAQ:CAKE) was upgraded by equities researchers at Zacks Research from a “hold” rating to a “strong-buy” rating in a research note issued to investors on Thursday,Zacks.com reports.

A number of other equities analysts have also weighed in on the stock. Citigroup lifted their price target on shares of Cheesecake Factory from $76.00 to $90.00 and gave the company a “buy” rating in a report on Friday, July 10th. Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating and issued a $68.00 target price on shares of Cheesecake Factory in a research report on Thursday, April 30th. Morgan Stanley upgraded Cheesecake Factory from an “underweight” rating to an “equal weight” rating and lifted their target price for the company from $50.00 to $80.00 in a report on Wednesday. Wells Fargo & Company upped their price target on Cheesecake Factory from $65.00 to $75.00 and gave the stock an “equal weight” rating in a research note on Thursday, July 16th. Finally, Stephens restated a “positive” rating on shares of Cheesecake Factory in a report on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, eleven have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $79.81.

Cheesecake Factory Stock Performance

Shares of CAKE opened at $101.42 on Thursday. Cheesecake Factory has a 12-month low of $43.07 and a 12-month high of $103.33. The stock has a market cap of $5.04 billion, a P/E ratio of 27.49, a PEG ratio of 1.85 and a beta of 1.01. The company has a current ratio of 0.59, a quick ratio of 0.53 and a debt-to-equity ratio of 1.22. The company has a 50-day moving average of $77.60 and a two-hundred day moving average of $66.16.

Cheesecake Factory (NASDAQ:CAKE) last released its quarterly earnings results on Tuesday, July 28th. The restaurant operator reported $1.44 EPS for the quarter, beating the consensus estimate of $1.18 by $0.26. Cheesecake Factory had a net margin of 4.61% and a return on equity of 45.94%. The business had revenue of $1.03 billion for the quarter, compared to analyst estimates of $999.54 million. During the same period in the prior year, the business earned $1.16 earnings per share. The company’s quarterly revenue was up 7.7% on a year-over-year basis. As a group, research analysts predict that Cheesecake Factory will post 4.38 EPS for the current fiscal year.

Insider Buying and Selling at Cheesecake Factory

In related news, insider Ashley W. Hanscom sold 3,500 shares of Cheesecake Factory stock in a transaction dated Thursday, July 30th. The shares were sold at an average price of $100.00, for a total transaction of $350,000.00. Following the sale, the insider directly owned 7,541 shares in the company, valued at $754,100. The trade was a 31.70% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Alexander L. Cappello sold 2,490 shares of Cheesecake Factory stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $64.90, for a total value of $161,601.00. Following the transaction, the director owned 6,171 shares in the company, valued at approximately $400,497.90. This trade represents a 28.75% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 74,890 shares of company stock valued at $7,353,371 in the last ninety days. Company insiders own 8.00% of the company’s stock.

Institutional Investors Weigh In On Cheesecake Factory

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Salomon & Ludwin LLC raised its stake in shares of Cheesecake Factory by 226.5% during the 4th quarter. Salomon & Ludwin LLC now owns 604 shares of the restaurant operator’s stock worth $33,000 after purchasing an additional 419 shares in the last quarter. Global Retirement Partners LLC grew its stake in shares of Cheesecake Factory by 661.7% in the 4th quarter. Global Retirement Partners LLC now owns 716 shares of the restaurant operator’s stock valued at $36,000 after buying an additional 622 shares in the last quarter. NFSG Corp increased its holdings in Cheesecake Factory by 115.8% in the first quarter. NFSG Corp now owns 682 shares of the restaurant operator’s stock worth $37,000 after buying an additional 366 shares during the last quarter. Root Financial Partners LLC increased its holdings in Cheesecake Factory by 973.2% in the fourth quarter. Root Financial Partners LLC now owns 880 shares of the restaurant operator’s stock worth $44,000 after buying an additional 798 shares during the last quarter. Finally, Arax Advisory Partners bought a new position in Cheesecake Factory during the fourth quarter valued at approximately $50,000. Hedge funds and other institutional investors own 94.48% of the company’s stock.

More Cheesecake Factory News

Here are the key news stories impacting Cheesecake Factory this week:

• Positive Sentiment: Record quarterly performance: Cheesecake Factory reported its first quarter with revenue above $1 billion, alongside earnings and revenue that exceeded Wall Street expectations. Revenue increased 7.7% year over year, reinforcing the view that stronger traffic and execution are driving the core brand. Cheesecake Factory quarterly revenues surpass $1B for the first time
• Positive Sentiment: Improved analyst outlook: Zacks added CAKE to its Rank #1, or “Strong Buy,” list, citing favorable earnings-estimate revisions. A separate analysis said stronger namesake-brand traffic, menu innovation, digital engagement and brand expansion could support continued growth. Why Cheesecake Factory Might Be Well Poised for a Surge
• Positive Sentiment: Broader bullish sentiment: Seeking Alpha upgraded the stock to Buy after noting improved core traffic, while Stephens and Robert W. Baird raised their price targets. These actions reinforce investor confidence following the earnings beat. The Cheesecake Factory: Core Traffic Improved
• Neutral Sentiment: Customer engagement initiatives: National Cheesecake Day promotions, including half-price slices and a new brownie-toffee flavor, may support near-term traffic and brand visibility, but their effect on earnings is likely limited. The Cheesecake Factory celebrates National Cheesecake Day
• Negative Sentiment: Large insider sale: CFO Matthew Eliot Clark sold 68,900 shares for approximately $6.8 million after exercising options, reducing his direct stake by about 60%. Another insider sold 3,500 shares for $350,000. The transactions may raise caution because they occurred near record highs, although insider sales can also reflect diversification or scheduled compensation activity. What This Cheesecake Factory Insider Sale Means
• Negative Sentiment: Valuation and execution risks: CAKE has more than doubled during 2026, making its valuation richer. Investors are also watching softer North Italia demand and inflation-driven margin pressure, which could challenge the sustainability of the rally. Is CAKE Stock Still Attractive After Its Powerful 2026 Rally?

About Cheesecake Factory

The Cheesecake Factory Incorporated (NASDAQ:CAKE) is an American restaurant company and distributor renowned for its full-service casual-dining concept and specialty cheesecakes. Headquartered in Calabasas Hills, California, the company operates more than 200 restaurants under The Cheesecake Factory® brand across the United States, Puerto Rico and select international markets. In addition to sit-down dining, Cheesecake Factory franchised locations offer catering and take-out services, while a separate manufacturing arm supplies branded cheesecakes and desserts to supermarkets, hotels and other foodservice operators.

The origins of the brand trace back to a small cheesecake bakery founded in Detroit in the 1940s.