Where Cheesecake Factory Stands With Analysts

In the last three months, 7 analysts have published ratings on Cheesecake Factory CAKE, offering a diverse range of perspectives from bullish to bearish.

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

In the assessment of 12-month price targets, analysts unveil insights for Cheesecake Factory, presenting an average target of $55.86, a high estimate of $64.00, and a low estimate of $41.00. This upward trend is evident, with the current average reflecting a 13.61% increase from the previous average price target of $49.17.

Analyzing Analyst Ratings: A Detailed Breakdown

In examining recent analyst actions, we gain insights into 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: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Cheesecake Factory. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Cheesecake Factory compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Cheesecake Factory's stock. This comparison reveals trends in analysts' expectations over time.

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.

Stay up to date on Cheesecake Factory analyst ratings.

Get to Know Cheesecake Factory Better

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.

Cheesecake Factory: Financial Performance Dissected

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Cheesecake Factory's remarkable performance in 3 months is evident. As of 30 September, 2024, the company achieved an impressive revenue growth rate of 4.25%. This signifies a substantial increase 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 falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 3.47%, 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 7.79%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Cheesecake Factory's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 1.03%, the company may face hurdles in achieving optimal financial performance.

Debt Management: With a high debt-to-equity ratio of 4.76, Cheesecake Factory faces challenges in effectively managing its debt levels, indicating potential financial strain.

Analyst Ratings: Simplified

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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