Q3 EPS Forecast for Cheesecake Factory Boosted by Analyst

The Cheesecake Factory Incorporated (NASDAQ:CAKE) – Equities research analysts at William Blair boosted their Q3 2025 earnings per share estimates for Cheesecake Factory in a research report issued to clients and investors on Wednesday, July 30th. William Blair analyst S. Zackfia now expects that the restaurant operator will post earnings of $0.61 per share for the quarter, up from their prior forecast of $0.57. 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 FY2025 earnings at $3.79 EPS.

Cheesecake Factory (NASDAQ:CAKE) last released its quarterly earnings results on Tuesday, July 29th. The restaurant operator reported $1.16 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.06 by $0.10. Cheesecake Factory had a return on equity of 46.15% and a net margin of 4.33%. The business had revenue of $955.83 million during the quarter, compared to analysts’ expectations of $945.82 million. During the same period in the previous year, the business posted $1.09 earnings per share. The firm’s revenue for the quarter was up 5.7% compared to the same quarter last year.

CAKE has been the subject of a number of other reports. Stephens reaffirmed an “overweight” rating and issued a $60.00 price target on shares of Cheesecake Factory in a report on Thursday, May 1st. Wells Fargo & Company boosted their price objective on Cheesecake Factory from $60.00 to $65.00 and gave the stock an “equal weight” rating in a report on Wednesday. Oppenheimer boosted their price objective on Cheesecake Factory from $65.00 to $75.00 and gave the stock an “outperform” rating in a report on Friday, July 11th. Robert W. Baird set a $64.00 price objective on Cheesecake Factory and gave the stock a “neutral” rating in a report on Wednesday. Finally, UBS Group boosted their price objective on Cheesecake Factory from $45.00 to $50.00 and gave the stock a “sell” rating in a report on Friday, July 18th. Four equities research analysts have rated the stock with a sell rating, six have assigned a hold rating and seven have assigned a buy rating to the company. According to MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $61.06.

Cheesecake Factory Stock Performance

Cheesecake Factory stock opened at $62.38 on Friday. The stock has a 50-day simple moving average of $61.06 and a 200 day simple moving average of $54.28. The company has a quick ratio of 0.43, a current ratio of 0.53 and a debt-to-equity ratio of 1.85. Cheesecake Factory has a 12-month low of $33.50 and a 12-month high of $69.70. The stock has a market capitalization of $3.09 billion, a price-to-earnings ratio of 19.19, a P/E/G ratio of 1.61 and a beta of 1.17.

Hedge Funds Weigh In On Cheesecake Factory

Institutional investors and hedge funds have recently modified their holdings of the business. Principal Financial Group Inc. grew its position in shares of Cheesecake Factory by 2.2% in the 1st quarter. Principal Financial Group Inc. now owns 274,877 shares of the restaurant operator’s stock valued at $13,376,000 after purchasing an additional 6,047 shares during the period. Allspring Global Investments Holdings LLC acquired a new position in Cheesecake Factory during the 1st quarter worth approximately $5,559,000. KLP Kapitalforvaltning AS acquired a new position in Cheesecake Factory during the 4th quarter worth approximately $489,000. Foundry Partners LLC acquired a new stake in shares of Cheesecake Factory in the first quarter valued at approximately $299,000. Finally, Dynamic Technology Lab Private Ltd acquired a new stake in shares of Cheesecake Factory in the fourth quarter valued at approximately $972,000. 94.48% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling

In other news, EVP Scarlett May sold 18,800 shares of the company’s stock in a transaction dated Monday, June 9th. The stock was sold at an average price of $58.82, for a total value of $1,105,816.00. Following the completion of the sale, the executive vice president directly owned 22,872 shares of the company’s stock, valued at $1,345,331.04. This represents a 45.11% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CFO Matthew Eliot Clark sold 42,900 shares of the company’s stock in a transaction dated Tuesday, May 27th. The shares were sold at an average price of $56.00, for a total value of $2,402,400.00. Following the completion of the sale, the chief financial officer directly owned 40,878 shares of the company’s stock, valued at approximately $2,289,168. This trade represents a 51.21% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 145,388 shares of company stock valued at $8,273,113. Insiders own 8.40% of the company’s stock.

Cheesecake Factory Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, August 26th. Stockholders of record on Tuesday, August 12th will be paid a $0.27 dividend. The ex-dividend date of this dividend is Tuesday, August 12th. This represents a $1.08 dividend on an annualized basis and a dividend yield of 1.7%. Cheesecake Factory’s dividend payout ratio is 33.23%.

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.