Dennis Geiger, an analyst from UBS, maintained the Sell rating on Cheesecake Factory. The associated price target is $50.00.
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Dennis Geiger has given his Sell rating due to a combination of factors impacting the Cheesecake Factory’s financial outlook. The company’s recent quarterly results showed solid margin improvements; however, the macroeconomic environment is increasingly challenging, leading to a miss in comparable sales and a reduction in the revenue target for 2025. The guidance for the fourth quarter of 2025 was below expectations, with revenue and net income margin projections not meeting consensus estimates.
Additionally, the initial guidance for 2026 also falls short of consensus expectations, with lower-than-anticipated revenue growth and net income margins. Despite positive execution in recent quarters, the pressures from macroeconomic conditions and industry trends pose risks to the company’s sales outlook. The valuation of Cheesecake Factory’s shares is currently above historical levels, which adds to the cautious stance, especially given the potential headwinds in the near term.
Geiger covers the Consumer Cyclical sector, focusing on stocks such as Domino’s Pizza, McDonald’s, and Dutch Bros Inc. According to TipRanks, Geiger has an average return of 2.6% and a 53.23% success rate on recommended stocks.
In another report released today, Barclays also maintained a Sell rating on the stock with a $48.00 price target.