Cheesecake Factory (CAKE) has received a new Buy rating, initiated by Mizuho Securities analyst, .
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Mizuho Securities has given its Buy rating due to a combination of factors that highlight the Cheesecake Factory’s strong growth potential and market position. The firm notes that the Cheesecake Factory’s stable same-store sales growth and margins provide a buffer against macroeconomic uncertainties in the restaurant industry. Furthermore, the company’s emerging brands, North Italia and Flower Child, are expected to significantly boost top-line growth, with unit growth rates surpassing those of legacy Cheesecake locations.
Additionally, Mizuho Securities points out that the Cheesecake Factory’s new long-term EBITDA and EPS growth algorithms are projected to outpace historical figures, indicating a robust financial outlook. The company’s valuation is expected to align with its higher annual EBITDA growth targets, supported by a 10.7x EV/EBITDA multiple on the 2026 EBITDA estimate, which is a premium compared to its peers. This combination of stable growth, emerging brand potential, and favorable financial projections underpins Mizuho Securities’ Buy rating for the Cheesecake Factory.
In another report released on October 16, Raymond James also maintained a Buy rating on the stock with a $70.00 price target.