Cheesecake Factory (NASDAQ:CAKE) Raised to Strong-Buy at Zacks Research

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

Several other research firms have also issued reports on CAKE. Morgan Stanley raised Cheesecake Factory from an “underweight” rating to an “equal weight” rating and increased their target price for the stock from $50.00 to $80.00 in a research note on Wednesday. Citigroup increased their price target on shares of Cheesecake Factory from $76.00 to $90.00 and gave the stock a “buy” rating in a research report on Friday, July 10th. Stephens restated a “positive” rating on shares of Cheesecake Factory in a report on Wednesday. JPMorgan Chase & Co. raised shares of Cheesecake Factory from an “underweight” rating to a “neutral” rating and upped their target price for the stock from $58.00 to $68.00 in a research note on Thursday, May 14th. Finally, Northcoast Research lowered shares of Cheesecake Factory from a “buy” rating to a “neutral” rating in a report on Monday, June 15th. One 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 issued a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $79.81.

Cheesecake Factory Stock Up 0.1%

Shares of NASDAQ CAKE opened at $101.42 on Thursday. The company has a quick ratio of 0.53, a current ratio of 0.59 and a debt-to-equity ratio of 1.22. The business’s 50 day moving average is $77.60 and its two-hundred day moving average is $66.16. Cheesecake Factory has a 52-week low of $43.07 and a 52-week high of $103.33. The firm has a market cap of $5.04 billion, a price-to-earnings ratio of 27.49, a PEG ratio of 1.85 and a beta of 1.01.

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

Insider Buying and Selling at Cheesecake Factory

In other Cheesecake Factory news, CFO Matthew Eliot Clark sold 68,900 shares of the firm’s stock in a transaction on Thursday, July 30th. The stock was sold at an average price of $99.30, for a total value of $6,841,770.00. Following the sale, the chief financial officer directly owned 45,109 shares in the company, valued at $4,479,323.70. This trade represents a 60.43% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Ashley W. Hanscom sold 3,500 shares of Cheesecake Factory stock in a transaction dated Thursday, July 30th. The stock was sold at an average price of $100.00, for a total value of $350,000.00. Following the sale, the insider directly owned 7,541 shares of the company’s stock, valued at $754,100. This trade represents a 31.70% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 74,890 shares of company stock worth $7,353,371 over the last ninety days. Corporate insiders own 8.00% of the company’s stock.

Institutional Investors Weigh In On Cheesecake Factory

Institutional investors have recently added to or reduced their stakes in the business. Allspring Global Investments Holdings LLC raised its holdings in Cheesecake Factory by 183.6% during the fourth quarter. Allspring Global Investments Holdings LLC now owns 133,921 shares of the restaurant operator’s stock worth $7,072,000 after purchasing an additional 86,705 shares in the last quarter. Fisher Asset Management LLC boosted its holdings in shares of Cheesecake Factory by 7.2% in the 4th quarter. Fisher Asset Management LLC now owns 503,184 shares of the restaurant operator’s stock valued at $25,401,000 after buying an additional 33,959 shares in the last quarter. Louisiana State Employees Retirement System acquired a new position in shares of Cheesecake Factory in the 1st quarter valued at $1,111,000. Intech Investment Management LLC grew its position in shares of Cheesecake Factory by 127.7% in the 4th quarter. Intech Investment Management LLC now owns 60,513 shares of the restaurant operator’s stock valued at $3,055,000 after buying an additional 33,936 shares during the last quarter. Finally, SG Americas Securities LLC raised its stake in Cheesecake Factory by 140.8% during the 4th quarter. SG Americas Securities LLC now owns 26,064 shares of the restaurant operator’s stock worth $1,316,000 after acquiring an additional 15,242 shares in the last quarter. Hedge funds and other institutional investors own 94.48% of the company’s stock.

Key Stories Impacting Cheesecake Factory

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.