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.
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