5 Analysts Assess Cheesecake Factory: What You Need To Know

Throughout the last three months, 5 analysts have evaluated Cheesecake Factory CAKE, offering a diverse set of opinions from bullish to bearish.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $36.6, a high estimate of $40.00, and a low estimate of $33.00. Observing a 12.62% increase, the current average has risen from the previous average price target of $32.50.

Decoding Analyst Ratings: A Detailed Look

An in-depth analysis of recent analyst actions unveils how financial experts perceive Cheesecake Factory. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Cheesecake Factory. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Cheesecake Factory compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Cheesecake Factory's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

To gain a panoramic view of Cheesecake Factory's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

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Discovering Cheesecake Factory: A Closer Look

Cheesecake Factory Inc 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.

Financial Milestones: Cheesecake Factory's Journey

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Revenue Growth: Cheesecake Factory's revenue growth over a period of 3 months has faced challenges. As of 31 December, 2023, the company experienced a revenue decline of approximately -1.77%. This indicates a decrease in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Net Margin: Cheesecake Factory's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 1.45%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Cheesecake Factory's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 3.96%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Cheesecake Factory's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.45%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Cheesecake Factory's debt-to-equity ratio stands notably higher than the industry average, reaching 5.85. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Analyst Ratings: Simplified

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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