Cheesecake Factory soars to fresh record after impressive Q2 report

Restaurant chain The Cheesecake Factory's CAKE.O shares soared 10.6% to a new record peak of $98.48 on Wednesday after quarterly results surpassed Wall Street's expectations.

CAKE shares, which hit an all-time intraday peak of $89.22 on Tuesday, had already 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 the second quarter, and expects to open up to 26 more in fiscal 2026.

At least 9 brokerages hiked their price targets: Morgan Stanley upgraded to "equal-weight" from "underweight" and raised its price target to $80 from $50.

Piper Sandler called the report impressive, saying second-quarter comparable sales were significantly above the consensus view of +2.1%, and above its sense of investor expectations.

Of 21 brokerages, 4 rate the stock "strong buy", 16 rate "hold" and 1 recommends "sell"; the median price target of $90 was up from $67 a month ago.