Insider Selling: Cheesecake Factory (NASDAQ:CAKE) Director Sells $40,474.90 in Stock

The Cheesecake Factory Incorporated (NASDAQ:CAKE) Director Alexander Cappello sold 635 shares of the business’s stock in a transaction that occurred on Monday, February 23rd. The stock was sold at an average price of $63.74, for a total value of $40,474.90. Following the sale, the director directly owned 6,171 shares of the company’s stock, valued at $393,339.54. This represents a 9.33% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website.

Cheesecake Factory Stock Down 0.5%

CAKE stock opened at $64.78 on Friday. The firm has a market capitalization of $3.23 billion, a PE ratio of 21.10, a P/E/G ratio of 1.68 and a beta of 1.02. The company has a quick ratio of 0.47, a current ratio of 0.59 and a debt-to-equity ratio of 1.29. The Cheesecake Factory Incorporated has a twelve month low of $42.69 and a twelve month high of $69.70. The stock’s 50 day moving average is $58.46 and its 200-day moving average is $55.22.

Cheesecake Factory (NASDAQ:CAKE) last released its quarterly earnings results on Wednesday, February 18th. The restaurant operator reported $1.00 EPS for the quarter, beating analysts’ consensus estimates of $0.98 by $0.02. Cheesecake Factory had a return on equity of 45.68% and a net margin of 3.96%.The business had revenue of $961.56 million during the quarter, compared to analyst estimates of $949.03 million. During the same period in the prior year, the firm posted $1.04 EPS. Cheesecake Factory’s quarterly revenue was up 4.4% compared to the same quarter last year. Sell-side analysts expect that The Cheesecake Factory Incorporated will post 3.71 EPS for the current fiscal year.

Cheesecake Factory Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, March 17th. Investors of record on Wednesday, March 4th will be given a dividend of $0.30 per share. The ex-dividend date of this dividend is Wednesday, March 4th. This is an increase from Cheesecake Factory’s previous quarterly dividend of $0.27. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.9%. Cheesecake Factory’s payout ratio is 39.09%.

Wall Street Analyst Weigh In

Several equities analysts have commented on the stock. Argus dropped their target price on shares of Cheesecake Factory from $72.00 to $55.00 and set a “buy” rating on the stock in a research report on Friday, November 7th. UBS Group set a $53.00 price target on Cheesecake Factory and gave the stock a “sell” rating in a report on Friday, February 20th. Robert W. Baird set a $62.00 price objective on Cheesecake Factory in a research report on Thursday, February 19th. Weiss Ratings upgraded Cheesecake Factory from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Monday. Finally, Mizuho set a $75.00 target price on Cheesecake Factory in a research note on Thursday, February 19th. Six investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and four have assigned a Sell rating to the company’s stock. According to MarketBeat, Cheesecake Factory has an average rating of “Hold” and an average target price of $61.81.

Institutional Trading of Cheesecake Factory

A number of large investors have recently bought and sold shares of the company. Parkside Financial Bank & Trust lifted its position in shares of Cheesecake Factory by 39.2% during the 2nd 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 last quarter. Truist Financial Corp raised its stake in Cheesecake Factory by 3.0% in the 4th quarter. Truist Financial Corp now owns 6,187 shares of the restaurant operator’s stock valued at $312,000 after acquiring an additional 181 shares during the period. Oregon Public Employees Retirement Fund raised its stake 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 acquiring an additional 200 shares during the period. California State Teachers Retirement System lifted its holdings in Cheesecake Factory by 0.5% during the second quarter. California State Teachers Retirement System now owns 44,527 shares of the restaurant operator’s stock valued at $2,790,000 after purchasing an additional 203 shares during the last quarter. Finally, Arizona State Retirement System boosted its position in Cheesecake Factory by 1.6% during the third quarter. Arizona State Retirement System now owns 13,918 shares of the restaurant operator’s stock worth $760,000 after purchasing an additional 214 shares during the period. 94.48% of the stock is owned by hedge funds and other institutional investors.

Cheesecake Factory News Summary

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

• Positive Sentiment: Zacks highlights CAKE as a strong value stock based on style scores, which supports a valuation-driven bullish case for value-oriented investors. Here’s Why CAKE is a Strong Value Stock
• Positive Sentiment: Management is weighing expansion for 2026 and exploring a rewards/app strategy that could boost repeat visits and off-premise sales if executed well — a potential multi-year revenue driver. Cheesecake Factory Weighs 2026 Expansion
• Positive Sentiment: International growth: the bakery/franchise arm opened its first India store in Bengaluru with aggressive multi-year revenue targets, signaling a path to diversify outside the U.S. market. Bakery opens first India store
• Positive Sentiment: Dividend increase: company raised the quarterly dividend to $0.30 (annualized $1.20), which supports income investors and signals confidence in cash flow. MarketBeat coverage
• Neutral Sentiment: Brand and real-estate positioning piece explains why Cheesecake Factory often anchors malls — useful context on customer traffic and site strategy but not an immediate catalyst. Why Cheesecake Factory is always in the mall
• Neutral Sentiment: Analyst Q&A/FAQ pieces after Q4 provide items to watch (guidance, margins) — helpful for investors but not new data. 5 Must-Read Analyst Questions
• Negative Sentiment: Concentrated insider selling: CFO Matthew Clark, EVP Spero Alex, director Alexander Cappello and others sold sizable blocks (~$64–$66 levels) last week. Multiple filings and aggregated reports have amplified investor concern and are the likely proximate cause of today’s downward price move. TipRanks insider trading
• Negative Sentiment: Valuation risk: coverage and commentaries flag that mixed analyst ratings and a moderate P/E leave the stock vulnerable if growth or margins disappoint. That concern compounds negative sentiment from insider sales. Valuation risks

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.