Cheesecake Factory’s Strong Operational Execution and Growth Potential Justify Buy Rating

Andy Barish, an analyst from Jefferies, maintained the Buy rating on Cheesecake Factory (CAKE – Research Report). The associated price target was lowered to $57.00.

Andy Barish has given his Buy rating due to a combination of factors including the Cheesecake Factory’s strong operational execution and its ability to maintain consistent sales trends despite macroeconomic uncertainties. The company’s management has successfully retained labor at record levels, which contributes to stable margins and effective operational performance. Additionally, the brand’s menu innovation and targeted offers through its Rewards membership program have been effective in driving sales and maintaining customer engagement.
Furthermore, the Cheesecake Factory’s off-premise sales remain robust, supported by a strong partnership with DoorDash, and dessert sales continue to perform well. The company has shown confidence in achieving its margin targets, with improvements expected due to strong labor productivity and flat commodity inflation. The growth of new brands such as North Italia and Flower Child, which are experiencing significant unit growth, also contributes to the positive outlook. This growth, combined with the stability of the core concept, suggests that the market may be undervaluing the company’s potential, justifying the Buy rating.

According to TipRanks, Barish is a 5-star analyst with an average return of 9.7% and a 57.82% success rate. Barish covers the Consumer Cyclical sector, focusing on stocks such as Starbucks, Wingstop, and Dutch Bros Inc.

In another report released on May 14, Argus Research also maintained a Buy rating on the stock with a $60.00 price target.