Cheesecake Factory (NASDAQ:CAKE) Lowered to “Equal Weight” Rating by Stephens

Stephens downgraded shares of Cheesecake Factory (NASDAQ:CAKE) from an overweight rating to an equal weight rating in a research report sent to investors on Thursday, Marketbeat Ratings reports. Stephens currently has $65.00 price objective on the restaurant operator’s stock.

A number of other brokerages also recently issued reports on CAKE. Bank of America lowered their price objective on Cheesecake Factory from $61.00 to $56.00 and set a “neutral” rating on the stock in a research report on Wednesday, October 29th. Weiss Ratings lowered Cheesecake Factory from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Thursday, January 15th. Jefferies Financial Group set a $70.00 price target on Cheesecake Factory and gave the company a “buy” rating in a research report on Wednesday, October 29th. Mizuho boosted their price objective on Cheesecake Factory from $65.00 to $70.00 and gave the stock an “outperform” rating in a report on Thursday, February 12th. Finally, Barclays restated an “underweight” rating and issued a $58.00 price objective on shares of Cheesecake Factory in a research report on Thursday. Five investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and four have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Hold” and an average target price of $61.63.

Cheesecake Factory Trading Down 2.6%

Shares of CAKE opened at $62.42 on Thursday. Cheesecake Factory has a twelve month low of $42.69 and a twelve month high of $69.70. The stock has a market cap of $3.11 billion, a PE ratio of 20.33, a P/E/G ratio of 1.62 and a beta of 1.02. The company has a quick ratio of 0.47, a current ratio of 0.55 and a debt-to-equity ratio of 1.32. The business’s 50-day moving average price is $56.77 and its 200-day moving average price is $55.10.

Cheesecake Factory (NASDAQ:CAKE) last issued its quarterly earnings data on Wednesday, February 18th. The restaurant operator reported $1.00 EPS for the quarter, beating the consensus estimate of $0.98 by $0.02. The company had revenue of $961.56 million during the quarter, compared to analysts’ expectations of $949.03 million. Cheesecake Factory had a net margin of 3.96% and a return on equity of 47.09%. Cheesecake Factory’s revenue for the quarter was up 4.4% on a year-over-year basis. During the same quarter in the previous year, the company earned $1.04 earnings per share. On average, equities analysts forecast that Cheesecake Factory will post 3.71 EPS for the current fiscal year.

Cheesecake Factory Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, March 17th. Shareholders of record on Wednesday, March 4th will be paid a $0.30 dividend. This is an increase from Cheesecake Factory’s previous quarterly dividend of $0.27. This represents a $1.20 annualized dividend and a yield of 1.9%. The ex-dividend date of this dividend is Wednesday, March 4th. Cheesecake Factory’s payout ratio is currently 32.73%.

Institutional Investors Weigh In On Cheesecake Factory

A number of hedge funds have recently made changes to their positions in CAKE. Salomon & Ludwin LLC grew its holdings 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 valued at $33,000 after purchasing an additional 419 shares during the last quarter. Global Retirement Partners LLC boosted its position in Cheesecake Factory by 661.7% during the fourth 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 during the period. Parkside Financial Bank & Trust boosted its position in Cheesecake Factory by 39.2% during the second quarter. Parkside Financial Bank & Trust now owns 632 shares of the restaurant operator’s stock valued at $40,000 after buying an additional 178 shares during the period. Root Financial Partners LLC grew its stake in shares of Cheesecake Factory by 973.2% during the fourth quarter. Root Financial Partners LLC now owns 880 shares of the restaurant operator’s stock valued at $44,000 after buying an additional 798 shares during the last quarter. Finally, Arax Advisory Partners purchased a new position in shares of Cheesecake Factory in the fourth quarter worth about $50,000. 94.48% of the stock is currently owned by institutional investors.

Key Headlines Impacting Cheesecake Factory

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

• Positive Sentiment: Raised dividend and buyback authorization — Management increased the quarterly dividend to $0.30 (an ~11.1% raise) and expanded share-repurchase authorization, a direct shareholder-return boost that can underpin the stock. Boosts Dividend and Buyback Authorization
• Positive Sentiment: Top-line growth and unit expansion plan — Q4 revenue rose about 4.4% to ~$961.6M and management signaled up to 26 new openings in 2026; company also nudged FY revenue guidance toward ~$3.9B, signaling continued growth potential. The Cheesecake Factory: A Sweet Treat For Shareholders
• Neutral Sentiment: Mixed analyst response — Citigroup raised its price target to $74 with a Buy stance, while other shops (Wells Fargo, Stephens) moved to more cautious ratings/targets; analyst views are split between growth optimism and concerns about valuation/traffic. Analyst Coverage
• Negative Sentiment: Comparable-sales weakness and margin pressure — The namesake Cheesecake Factory brand reported a decline in comparable sales (~-2.2%) and operating margins narrowed (operating margin reported near ~3.5%), which has alarmed investors focused on traffic trends and profitability. Media coverage notes the share-price reaction. Stock Falls on Q4 2025 Earnings
• Negative Sentiment: Profitability and earnings perception — While revenue rose, several outlets highlighted narrower operating profit and lower net income year‑over‑year; some investors viewed the quarter as mixed enough to justify selling into the initial pop. Challenging Operating Environment

Cheesecake Factory Company Profile

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.