Cheesecake Factory poised to hit fresh record after Q2 beat
CAKE•Shares rise after quarterly beat and raised price targets
- Restaurant chain The Cheesecake Factory's CAKE.O shares were up 4.5% to $93 in premarket trading Wednesday after quarterly results surpassed Wall Street's expectations.
- CAKE shares hit an all-time intraday peak of $89.22 on Tuesday; the stock had surged 76% year to date as of the last close.
- Calabasas Hills, California-based firm late Tuesday posted second-quarter revenue of $1.03 billion and adjusted EPS of $1.44, above analysts' estimates of $997.95 million and $1.17, respectively, per LSEG data.
- Comparable restaurant sales increased 5.8% year over year.
- CEO David Overton said the company's comparable sales and traffic outperformed the broader casual dining industry, adding that momentum from menu innovation, rewards programs and marketing efforts drove top-line performance.
- CAKE opened 4 new restaurants in Q2, and expects to open up to 26 new restaurants in fiscal 2026.
- At least 8 brokerages raised their price targets: Morgan Stanley upgraded its rating to 'equal-weight' from 'underweight' and raised its PT to $80 from $50.
- BofA Global Research increased its PT to $98 from $86, and Deutsche Bank boosted its PT to $92 from $68.
- Of 21 brokerages, 4 rate the stock "strong buy", 16 rate "hold" and 1 recommends "sell"; the median PT of $90 is up from $67 a month ago.
