William Blair analyst Sharon Zackfia has reiterated their bullish stance on CAKE stock, giving a Buy rating on April 16.
Sharon Zackfia’s rating is based on a combination of factors that highlight the Cheesecake Factory’s strong financial performance in the first quarter. The company reported adjusted earnings per share that surpassed both the implied guidance and the expectations of analysts, which was largely attributed to better-than-anticipated margins at the restaurant level.
Furthermore, the revenue of $927 million slightly exceeded consensus estimates and was near the higher end of the company’s guidance, supported by a modest 1% increase in comparable sales at The Cheesecake Factory. The stability and predictability of sales trends during the quarter, with consistent patterns across different times of the day and week, also contributed to the positive outlook and the Buy rating recommendation.
In another report released on April 16, Raymond James also maintained a Buy rating on the stock with a $56.00 price target.
Based on the recent corporate insider activity of 30 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CAKE in relation to earlier this year.