Expert Outlook: Cheesecake Factory Through The Eyes Of 7 Analysts

Ratings for Cheesecake Factory CAKE were provided by 7 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $32.14, a high estimate of $35.00, and a low estimate of $26.00. A decline of 5.47% from the prior average price target is evident in the current average.

Understanding Analyst Ratings: A Comprehensive Breakdown

The standing of Cheesecake Factory among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Cheesecake Factory. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Cheesecake Factory compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Cheesecake Factory's stock. This analysis reveals shifts in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Cheesecake Factory's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

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About Cheesecake Factory

Cheesecake Factory owns and operates restaurants in the United States and Canada under brands that include The Cheesecake Factory, North Italia, and a collection within the Fox Restaurants Concepts subsidiary. The company's international presence, in the Middle East and Mexico, is through licensing agreements with third parties. The company also has a bakery division that produces cheesecakes and other baked products for sale in its restaurants, international licensees, and third-party bakery customers. The company has four operating business segments: The Cheesecake Factory restaurants, North Italia, other FRC, and Flower Child. Majority of the company's revenue comes from The Cheesecake Factory restaurants segment.

Cheesecake Factory's Economic Impact: An Analysis

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Cheesecake Factory's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2023, the company achieved a revenue growth rate of approximately 5.89%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Discretionary sector.

Net Margin: Cheesecake Factory's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 2.16%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Cheesecake Factory's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 5.54%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Cheesecake Factory's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.65%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Cheesecake Factory's debt-to-equity ratio is notably higher than the industry average. With a ratio of 5.79, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

The Core of Analyst Ratings: What Every Investor Should Know

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

This article was generated by Benzinga's automated content engine and reviewed by an editor.