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

Zacks Research upgraded shares of Cheesecake Factory (NASDAQ:CAKE) from a hold rating to a strong-buy rating in a report published on Thursday morning,Zacks.com reports.

Several other research analysts have also recently weighed in on CAKE. JPMorgan Chase & Co. raised shares of Cheesecake Factory from an “underweight” rating to a “neutral” rating and boosted their price target for the company from $58.00 to $68.00 in a research report on Thursday, May 14th. Bank of America raised their price objective on shares of Cheesecake Factory from $66.00 to $79.00 and gave the stock a “neutral” rating in a research report on Thursday, July 2nd. Mizuho boosted their target price on shares of Cheesecake Factory from $85.00 to $93.00 and gave the company a “neutral” rating in a report on Wednesday. Stephens reissued a “positive” rating on shares of Cheesecake Factory in a research note on Wednesday. Finally, Weiss Ratings upgraded shares of Cheesecake Factory from a “buy (b-)” rating to a “buy (b)” rating in a report on Tuesday, July 14th. 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 issued a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $79.81.

Cheesecake Factory Stock Performance

Shares of Cheesecake Factory stock opened at $101.42 on Thursday. The business’s 50 day moving average price is $77.60 and its 200 day moving average price is $66.16. The company 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. The company has a debt-to-equity ratio of 1.22, a quick ratio of 0.53 and a current ratio of 0.59. Cheesecake Factory has a one year low of $43.07 and a one year high of $103.33.

Cheesecake Factory (NASDAQ:CAKE) last issued its earnings results on Tuesday, July 28th. The restaurant operator reported $1.44 earnings per share (EPS) for the quarter, beating 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 company had revenue of $1.03 billion during the quarter, compared to analysts’ expectations of $999.54 million. During the same period in the prior year, the business earned $1.16 EPS. The firm’s quarterly revenue was up 7.7% on a year-over-year basis. On average, research analysts predict that Cheesecake Factory will post 4.38 EPS for the current year.

Cheesecake Factory Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, August 25th. Shareholders of record on Tuesday, August 11th will be paid a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a yield of 1.2%. The ex-dividend date of this dividend is Tuesday, August 11th. Cheesecake Factory’s dividend payout ratio (DPR) is 32.52%.

Insider Buying and Selling at Cheesecake Factory

In other Cheesecake Factory news, CFO Matthew Eliot Clark sold 68,900 shares of Cheesecake Factory stock in a transaction dated Thursday, July 30th. The shares were sold at an average price of $99.30, for a total transaction of $6,841,770.00. Following the completion of 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Alexander L. Cappello sold 2,490 shares of the business’s stock in a transaction that occurred 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 completion of the sale, the director directly owned 6,171 shares in the company, valued at approximately $400,497.90. The trade was a 28.75% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 74,890 shares of company stock worth $7,353,371 over the last three months. Insiders own 8.00% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Truist Financial Corp increased its stake in Cheesecake Factory by 3.0% during the 4th quarter. Truist Financial Corp now owns 6,187 shares of the restaurant operator’s stock worth $312,000 after buying an additional 181 shares during the period. Oregon Public Employees Retirement Fund boosted its position in Cheesecake Factory by 1.9% in the 4th quarter. Oregon Public Employees Retirement Fund now owns 10,487 shares of the restaurant operator’s stock valued at $529,000 after buying an additional 200 shares during the period. California State Teachers Retirement System grew its stake in shares of Cheesecake Factory by 0.5% in the second quarter. California State Teachers Retirement System now owns 44,527 shares of the restaurant operator’s stock worth $2,790,000 after acquiring an additional 203 shares in the last quarter. Money Concepts Capital Corp grew its stake in shares of Cheesecake Factory by 3.8% in the first quarter. Money Concepts Capital Corp now owns 5,802 shares of the restaurant operator’s stock worth $318,000 after acquiring an additional 210 shares in the last quarter. Finally, Mercer Global Advisors Inc. ADV increased its position in shares of Cheesecake Factory by 5.9% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 4,642 shares of the restaurant operator’s stock worth $234,000 after acquiring an additional 260 shares during the period. Institutional investors and hedge funds own 94.48% of the company’s stock.

Cheesecake Factory News Summary

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.