Zacks Research Has Optimistic Outlook of CAKE Q1 Earnings

The Cheesecake Factory Incorporated (NASDAQ:CAKE) – Equities researchers at Zacks Research lifted their Q1 2026 earnings per share estimates for shares of Cheesecake Factory in a research report issued on Wednesday, March 4th. Zacks Research analyst Team now expects that the restaurant operator will post earnings per share of $1.03 for the quarter, up from their previous estimate of $0.99. The consensus estimate for Cheesecake Factory’s current full-year earnings is $3.71 per share. Zacks Research also issued estimates for Cheesecake Factory’s Q2 2026 earnings at $1.20 EPS, Q3 2026 earnings at $0.71 EPS, Q4 2026 earnings at $1.05 EPS, FY2026 earnings at $4.00 EPS, Q1 2027 earnings at $1.09 EPS, Q2 2027 earnings at $1.26 EPS, Q3 2027 earnings at $0.74 EPS, Q4 2027 earnings at $1.13 EPS, FY2027 earnings at $4.22 EPS and FY2028 earnings at $4.78 EPS.

Cheesecake Factory (NASDAQ:CAKE) last released its quarterly earnings data on Wednesday, February 18th. The restaurant operator reported $1.00 EPS for the quarter, topping analysts’ consensus estimates of $0.98 by $0.02. The firm had revenue of $961.56 million during the quarter, compared to the consensus estimate of $949.03 million. Cheesecake Factory had a net margin of 3.96% and a return on equity of 45.68%. The firm’s revenue was up 4.4% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.04 earnings per share.

Other equities research analysts have also recently issued reports about the company. Morgan Stanley raised their target price on Cheesecake Factory from $49.00 to $50.00 and gave the company an “underweight” rating in a research note on Tuesday, January 20th. Argus cut their price objective 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. Mizuho set a $75.00 target price on shares of Cheesecake Factory in a research report on Thursday, February 19th. Stephens lowered shares of Cheesecake Factory from an “overweight” rating to an “equal weight” rating and set a $65.00 price target on the stock. in a research note on Thursday, February 19th. Finally, Wells Fargo & Company lifted their price target on Cheesecake Factory from $55.00 to $60.00 and gave the company an “equal weight” rating in a report on Thursday, February 19th. Six equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of “Hold” and an average target price of $61.81.

Cheesecake Factory Trading Down 2.0%

NASDAQ CAKE opened at $61.74 on Friday. The company has a debt-to-equity ratio of 1.29, a quick ratio of 0.52 and a current ratio of 0.59. Cheesecake Factory has a one year low of $42.69 and a one year high of $69.70. The company has a 50-day simple moving average of $59.58 and a 200-day simple moving average of $55.22. The firm has a market capitalization of $3.08 billion, a PE ratio of 20.11, a price-to-earnings-growth ratio of 1.63 and a beta of 0.97.

Institutional Investors Weigh In On Cheesecake Factory

A number of institutional investors have recently added to or reduced their stakes in the company. Salomon & Ludwin LLC raised its stake in shares of Cheesecake Factory by 226.5% in the 4th quarter. Salomon & Ludwin LLC now owns 604 shares of the restaurant operator’s stock worth $33,000 after buying an additional 419 shares in the last quarter. Global Retirement Partners LLC grew its holdings in Cheesecake Factory by 661.7% during the fourth quarter. Global Retirement Partners LLC now owns 716 shares of the restaurant operator’s stock worth $36,000 after acquiring an additional 622 shares during the period. Parkside Financial Bank & Trust raised its position in Cheesecake Factory by 39.2% in the second quarter. Parkside Financial Bank & Trust now owns 632 shares of the restaurant operator’s stock worth $40,000 after acquiring an additional 178 shares in the last quarter. Root Financial Partners LLC lifted its holdings in Cheesecake Factory by 973.2% in the 4th quarter. Root Financial Partners LLC now owns 880 shares of the restaurant operator’s stock valued at $44,000 after acquiring an additional 798 shares during the last quarter. Finally, Arax Advisory Partners bought a new position in shares of Cheesecake Factory during the 4th quarter valued at about $50,000. 94.48% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity at Cheesecake Factory

In other news, Director Alexander L. Cappello sold 635 shares of the stock in a transaction that occurred on Monday, February 23rd. The shares were sold at an average price of $63.74, for a total value of $40,474.90. Following the completion of the transaction, the director directly owned 6,171 shares in the company, valued at $393,339.54. This trade represents a 9.33% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Spero G. Alex sold 4,790 shares of the firm’s stock in a transaction that occurred on Wednesday, February 25th. The shares were sold at an average price of $66.00, for a total transaction of $316,140.00. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 15,376 shares of company stock worth $1,010,219 in the last 90 days. Corporate insiders own 8.40% of the company’s stock.

Cheesecake Factory Increases Dividend

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

Cheesecake Factory News Roundup

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

• Positive Sentiment: Zacks raised near-term and FY2026 estimates slightly — Q1 2026 was revised up to $1.03 from $0.99, Q3 2026 to $0.71 from $0.67, and FY2026 to $4.00 (from $3.99). These upward tweaks suggest some resilience in short-term operating trends. Zacks / MarketBeat summary
• Positive Sentiment: Zacks published a FY2028 EPS estimate of $4.78, signaling expectations for continued earnings recovery beyond FY2027 — a longer‑term constructive datapoint for growth investors. Zacks / MarketBeat summary
• Neutral Sentiment: The Cheesecake Factory expanded menu offerings, which could help traffic and check sizes but is unlikely to move results immediately; viewed as an operational/marketing positive with gradual effect. The Cheesecake Factory’s already massive menu expands with more items
• Neutral Sentiment: An AOL comparison of happy-hour deals (Cheesecake Factory vs. Yard House) is consumer-facing coverage; useful for brand perception but unlikely to be a material earnings driver. Cheesecake Factory Vs Yard House: Which Chain Has Better Happy Hour Deals?
• Negative Sentiment: Zacks trimmed FY2027 and several quarterly forecasts — FY2027 cut to $4.22 from $4.38 and reductions across Q1–Q4 2027 and portions of 2026 (notably Q2 2026 from $1.26 to $1.20). Multiple downward revisions to next‑year guidance likely weighed on sentiment because they reduce forward earnings visibility. Zacks / MarketBeat summary
• Negative Sentiment: Zacks also lowered several specific 2027 quarter estimates (Q1 2027 $1.09 from $1.13, Q2/Q3/Q4 tweaks) — these serial cuts can prompt short-term multiple compression as investors reprice CAKE against reduced near‑term growth expectations. Zacks / MarketBeat summary

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.