William Blair Has Negative Forecast for CAKE FY2025 Earnings

The Cheesecake Factory Incorporated (NASDAQ:CAKE) – William Blair decreased their FY2025 EPS estimates for shares of Cheesecake Factory in a research note issued to investors on Tuesday, July 22nd. William Blair analyst S. Zackfia now expects that the restaurant operator will post earnings per share of $3.68 for the year, down from their previous estimate of $3.69. The consensus estimate for Cheesecake Factory’s current full-year earnings is $3.71 per share. William Blair also issued estimates for Cheesecake Factory’s Q4 2025 earnings at $1.12 EPS.

Several other research firms have also issued reports on CAKE. UBS Group increased their price target on shares of Cheesecake Factory from $45.00 to $50.00 and gave the stock a “sell” rating in a research report on Friday, July 18th. Morgan Stanley set a $45.00 price target on shares of Cheesecake Factory and gave the company an “underweight” rating in a research note on Monday, July 14th. Stephens reaffirmed an “overweight” rating and set a $60.00 price target on shares of Cheesecake Factory in a research note on Thursday, May 1st. Wells Fargo & Company raised their price target on shares of Cheesecake Factory from $50.00 to $60.00 and gave the company an “equal weight” rating in a research note on Thursday, July 17th. Finally, Robert W. Baird increased their price objective on shares of Cheesecake Factory from $46.00 to $49.00 and gave the stock a “neutral” rating in a research report on Thursday, May 1st. Four research analysts have rated the stock with a sell rating, six have given a hold rating and seven have issued a buy rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $59.38.

Cheesecake Factory Stock Performance

NASDAQ CAKE opened at $65.48 on Thursday. The company has a current ratio of 0.53, a quick ratio of 0.43 and a debt-to-equity ratio of 1.85. The firm has a market capitalization of $3.24 billion, a price-to-earnings ratio of 20.53, a P/E/G ratio of 1.79 and a beta of 1.16. The firm’s 50 day simple moving average is $59.74 and its 200 day simple moving average is $53.66. Cheesecake Factory has a 1 year low of $33.50 and a 1 year high of $69.70.

Cheesecake Factory (NASDAQ:CAKE) last posted its quarterly earnings results on Wednesday, April 30th. The restaurant operator reported $0.93 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.81 by $0.12. The business had revenue of $927.20 million for the quarter, compared to analyst estimates of $927.17 million. Cheesecake Factory had a net margin of 4.33% and a return on equity of 46.06%. The firm’s revenue for the quarter was up 4.0% on a year-over-year basis. During the same quarter last year, the business posted $0.73 EPS.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Ameritas Advisory Services LLC acquired a new position in shares of Cheesecake Factory during the second quarter valued at about $28,000. USA Financial Formulas acquired a new position in shares of Cheesecake Factory during the first quarter valued at about $49,000. Golden State Wealth Management LLC grew its holdings in shares of Cheesecake Factory by 100.0% during the first quarter. Golden State Wealth Management LLC now owns 1,060 shares of the restaurant operator’s stock valued at $52,000 after buying an additional 530 shares during the last quarter. SBI Securities Co. Ltd. grew its holdings in shares of Cheesecake Factory by 38.5% during the first quarter. SBI Securities Co. Ltd. now owns 1,244 shares of the restaurant operator’s stock valued at $61,000 after buying an additional 346 shares during the last quarter. Finally, Bayforest Capital Ltd acquired a new position in shares of Cheesecake Factory during the first quarter valued at about $72,000. 94.48% of the stock is currently owned by institutional investors and hedge funds.

Insiders Place Their Bets

In other Cheesecake Factory news, insider Keith Carango sold 50,500 shares of the firm’s stock in a transaction on Wednesday, May 28th. The shares were sold at an average price of $55.12, for a total value of $2,783,560.00. Following the completion of the sale, the insider directly owned 20,774 shares in the company, valued at approximately $1,145,062.88. This trade represents a 70.85% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Matthew Eliot Clark sold 42,900 shares of the firm’s stock in a transaction on Tuesday, May 27th. The stock was sold at an average price of $56.00, for a total transaction of $2,402,400.00. Following the completion of the sale, the chief financial officer owned 40,878 shares of the company’s stock, valued at $2,289,168. The trade was a 51.21% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 133,000 shares of company stock worth $7,456,992. 8.40% of the stock is currently owned by company insiders.

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.