Key Points
- EVP Spero Alex sold 4,790 shares of Cheesecake Factory (NASDAQ:CAKE) on Feb. 25 at an average price of $66 for $316,140, and multiple other insiders have also sold recently, weighing on sentiment.
- Dividend hike: the company raised its quarterly dividend to $0.30 (annualized $1.20) with an ex-dividend/record date in early March, implying a ~1.8% yield.
- Mixed financial picture: Q4 results beat expectations ($1.00 EPS vs $0.98 and $961.6M revenue vs $949.0M), but analysts remain divided and the consensus rating is "Hold" with valuation risks noted.
The Cheesecake Factory Incorporated (NASDAQ:CAKE - Get Free Report) insider Ashley Hanscom sold 2,951 shares of Cheesecake Factory stock in a transaction dated Wednesday, February 25th. The shares were sold at an average price of $65.64, for a total value of $193,703.64. Following the transaction, the insider owned 11,041 shares of the company's stock, valued at $724,731.24. This trade represents a 21.09% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link.
Cheesecake Factory Stock Down 2.2%
CAKE stock opened at $63.62 on Friday. The stock's 50 day moving average is $58.20 and its 200-day moving average is $55.20. The Cheesecake Factory Incorporated has a twelve month low of $42.69 and a twelve month high of $69.70. The firm has a market capitalization of $3.17 billion, a PE ratio of 20.83, a P/E/G ratio of 1.70 and a beta of 1.02. The company has a quick ratio of 0.47, a current ratio of 0.59 and a debt-to-equity ratio of 1.29.
Cheesecake Factory (NASDAQ:CAKE - Get Free Report) last issued its quarterly earnings data on Wednesday, February 18th. The restaurant operator reported $1.00 earnings per share for the quarter, beating the consensus estimate of $0.98 by $0.02. The business had revenue of $961.56 million for the quarter, compared to analysts' expectations of $949.03 million. Cheesecake Factory had a return on equity of 45.68% and a net margin of 3.96%.The business's revenue was up 4.4% on a year-over-year basis. During the same period last year, the business earned $1.04 EPS. Sell-side analysts expect that The Cheesecake Factory Incorporated will post 3.71 EPS for the current fiscal year.
Cheesecake Factory Increases Dividend
The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 17th. Shareholders of record on Wednesday, March 4th will be given a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date of this dividend is Wednesday, March 4th. This is a positive change from Cheesecake Factory's previous quarterly dividend of $0.27. Cheesecake Factory's payout ratio is currently 35.18%.
Institutional Investors Weigh In On Cheesecake Factory
Several institutional investors have recently added to or reduced their stakes in the business. Salomon & Ludwin LLC boosted its position in Cheesecake Factory by 226.5% during the fourth quarter. Salomon & Ludwin LLC now owns 604 shares of the restaurant operator's stock worth $33,000 after purchasing an additional 419 shares during the period. Global Retirement Partners LLC raised its position in shares of Cheesecake Factory by 661.7% in the fourth quarter. Global Retirement Partners LLC now owns 716 shares of the restaurant operator's stock valued at $36,000 after purchasing an additional 622 shares during the period. Parkside Financial Bank & Trust lifted its stake in shares of Cheesecake Factory by 39.2% during the 2nd quarter. Parkside Financial Bank & Trust now owns 632 shares of the restaurant operator's stock valued at $40,000 after buying an additional 178 shares in the last quarter. Root Financial Partners LLC lifted its stake in shares of Cheesecake Factory by 973.2% during the 4th quarter. Root Financial Partners LLC now owns 880 shares of the restaurant operator's stock valued at $44,000 after buying an additional 798 shares in the last quarter. Finally, Arax Advisory Partners bought a new position in Cheesecake Factory in the 4th quarter worth approximately $50,000. 94.48% of the stock is owned by hedge funds and other institutional investors.
Wall Street Analysts Forecast Growth
A number of equities analysts have recently weighed in on CAKE shares. Weiss Ratings upgraded Cheesecake Factory from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Monday. Morgan Stanley lifted their price target on Cheesecake Factory from $49.00 to $50.00 and gave the stock an "underweight" rating in a report on Tuesday, January 20th. UBS Group set a $53.00 price objective on Cheesecake Factory and gave the company a "sell" rating in a research note on Friday, February 20th. Citigroup lifted their target price on Cheesecake Factory from $72.00 to $74.00 and gave the stock a "buy" rating in a research note on Thursday, February 19th. Finally, Barclays reissued an "underweight" rating and issued a $58.00 price target on shares of Cheesecake Factory in a report on Thursday, February 19th. Six investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and four have assigned a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $61.81.
View Our Latest Research Report on Cheesecake Factory
Key Stories Impacting Cheesecake Factory
Here are the key news stories impacting Cheesecake Factory this week:
- Positive Sentiment: Company weighing expansion plans for 2026 and exploring a rewards/app strategy that could boost repeat visits and off-premise sales if executed well. This signals management is looking to grow revenue channels. Cheesecake Factory Weighs 2026 Expansion
- Positive Sentiment: International franchise push: Cheesecake Factory’s bakery unit opened its first India store in Bengaluru with ambitious multi-year revenue targets — a path to diversify and expand the brand outside the U.S. Bakery opens first India store
- Positive Sentiment: Dividend hike: Company raised its quarterly dividend (to $0.30), increasing income appeal for yield-oriented holders and signaling confidence in cash flow. MarketBeat coverage
- Neutral Sentiment: Brand positioning story explains why Cheesecake Factory locations frequently anchor malls — useful context on real estate strategy and customer traffic patterns but not an immediate catalyst. Why Cheesecake Factory is always in the mall
- Neutral Sentiment: Analyst-call takeaways/FAQ piece outlines questions investors should watch following Q4 results — helpful for evaluating guidance and margin drivers but not new data. 5 Must-Read Analyst Questions
- Negative Sentiment: Multiple insider sales: CFO Matthew Eliot Clark, EVP Spero Alex, director Alexander Cappello and other insiders sold shares last week (transactions at ~$64–$66). Heavy insider selling is weighing on sentiment and is likely the main driver of today’s negative price reaction. TipRanks insider trading
- Negative Sentiment: Valuation risks flagged by coverage: commentary in recent pieces highlights that while results beat, consensus valuation and mixed analyst ratings create downside risk if growth or margin improvements slow. Valuation risks
Cheesecake Factory Company Profile
(
Get Free Report)
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.
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