Cheesecake Factory Gets a Hold Rating from Oppenheimer

By Austin Angelo

In a report released today, Brian Bittner from Oppenheimer maintained a Hold rating on Cheesecake Factory (NASDAQ: CAKE). The company’s shares closed yesterday at $50.71.

Bittner said:

“In the near term we see a solidly in-line 1Q18 (4/25 report), particularly after industry’s strong March performance. But for shares to sustainably break out of high-$40-to-low- $50-range, we believe CAKE needs a permanent resurgence back to +1-2% comps vs -1% last 12 months. This would drive higher earnings revisions, but is a scenario we currently are unable to underwrite. And at 17.5x forward P/E, risk-reward appears well-balanced for now and we maintain our Perform rating. CAKE recently initiated attractive targets through 2020, targeting 11-12% annual EPS growth and $4.50 of EPS. These goals are attractive but ambitious and would suggest healthy upside to consensus after ’18 if achieved.”

According to, Bittner is a 5-star analyst with an average return of 11.6% and a 70.0% success rate. Bittner covers the Services sector, focusing on stocks such as Restaurant Brands International, Jack In The Box Inc, and Yum China Holdings.

Cheesecake Factory has an analyst consensus of Moderate Buy, with a price target consensus of $52.

Cheesecake Factory’s market cap is currently $2.33B and has a P/E ratio of 15.41. The company has a book value ratio of 3.7919.

Based on the recent corporate insider activity of 30 insiders, corporate insider sentiment is negative on the stock. Last month, Cheryl Slomann, the CAO of CAKE sold 5,500 shares for a total of $274,275.

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Cheesecake Factory, Inc. engages in the operation of chain restaurants. Its menu offering includes appetizers, pizza, seafood, steaks, chicken, burgers, small plates, pastas, salads, sandwiches, omelettes, and desserts. The company was founded by David M. Overton, Oscar Overton, and Evelyn Overton in 1972 and is headquartered in Calabasas Hills, CA.