Cheesecake Factory Shares Surpass Average Analyst Target Price

Cheesecake Factory's stock price reaches $37.65, surpassing the average analyst 12-month target price of $37.43. The company reported $0.73 earnings per share, beating the consensus estimate, and announced a quarterly dividend of $0.27 per share.

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Cheesecake Factory Shares Surpass Average Analyst Target Price

Cheesecake Factory Shares Surpass Average Analyst Target Price

Shares of The Cheesecake Factory Incorporated (NASDAQ: CAKE) have crossed the average analyst 12-month target price of $37.43, reaching $37.65 per share. The company's stock has a 52-week low of $28.58 and a 52-week high of $38.19.

Analysts have set a range of target prices for CAKE, from $29.00 to $45.00. Wedbush analyst N. Setyan has lowered the Q2 2024 earnings per share (EPS) estimate to $0.99, down from $1.06. The consensus estimate for Cheesecake Factory's current full-year earnings is $3.13 per share.

Why this matters: The performance of Cheesecake Factory's stock has implications for the broaderrestaurant industry, as it can influence investor sentiment and affect the valuations of other casual dining chains. As the company continues to deliver strong financial results, it may also impact consumer behavior and preferences in the competitive dining sector.

Several analysts have recently issued ratings and price targets for CAKE. Piper Sandler lifted their target price from $33.00 to $37.00 and gave the stock a "neutral" rating. Oppenheimer reaffirmed a "market perform" rating on shares of Cheesecake Factory. Citigroup upgraded Cheesecake Factory from a "neutral" rating to a "buy" rating and increased their price objective from $38.00 to $47.00. Robert W. Baird boosted their price objective on Cheesecake Factory from $32.00 to $37.00 and gave the company a "neutral" rating. Wells Fargo & Company lifted their price target on Cheesecake Factory from $35.00 to $36.00 and gave the company an "equal weight" rating.

Cheesecake Factory reported $0.73 earnings per share for the quarter, beating the consensus estimate of $0.63 by $0.10. The company had revenue of $891.22 million for the quarter, up 2.9% compared to the same quarter last year.

The company has announced a quarterly dividend of $0.27 per share, payable on Tuesday, June 4th, to investors of record on Wednesday, May 22nd. This represents a $1.08 annualized dividend and a yield of 2.87%.

With Cheesecake Factory shares crossing above the average analyst target price of $37.43, investors are presented with two options: downgrade the stock on valuation or adjust their target price to a higher level. The "wisdom of crowds" effort, combining the contributions of individual analysts, will determine the company's future prospects. As Cheesecake Factory continues to deliver strong financial results, the restaurant chain appears well-positioned for growth in the competitive casual dining sector.

Key Takeaways

  • Cheesecake Factory's stock reaches $37.65, surpassing average analyst target price of $37.43.
  • Analysts set target prices from $29.00 to $45.00, with a consensus EPS estimate of $3.13.
  • Company beats Q2 earnings estimate with $0.73 EPS, revenue up 2.9% to $891.22 million.
  • Cheesecake Factory announces $0.27 quarterly dividend, yielding 2.87%.
  • Strong financial results position company for growth in competitive casual dining sector.