William Blair analyst Sharon Zackfia has maintained their bullish stance on CAKE stock, giving a Buy rating on February 12.
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Sharon Zackfia has given his Buy rating due to a combination of factors tied to Cheesecake Factory’s resilient fundamentals and margin performance. Fourth-quarter earnings modestly exceeded expectations, as stronger-than-anticipated restaurant-level profitability offset revenue that came in toward the low end of management’s range, even after normalizing for gift-card related effects.
Sharon Zackfia’s rating is based on the view that recent comp softness is partly transitory and driven by factors like adverse weather and temporary cannibalization at North Italia. She also highlights that unit volumes across brands remain robust, with particularly strong average sales at the flagship Cheesecake Factory concept, which supports long-term earnings power and underpins a favorable risk-reward profile for the shares.
In another report released on February 12, Mizuho Securities also maintained a Buy rating on the stock with a $70.00 price target.