02:58 PM EST, 02/18/2025 (MT Newswires) -- Cheesecake Factory ( CAKE ) is likely to report "solid" Q4 same-store sales when it report its earnings, UBS said in a note emailed Tuesday.

UBS said Q4 same-store sales would roughly be in line with expectations. The company's investors are expecting same-store sales of around 1.5%, while analysts have pegged it at 1.6%, according to UBS.

The company's Q4 margins are also likely to be in line with consensus and UBS said it expects Cheesecake Factory ( CAKE ) to reiterate most of its 2025 guidance.

The investment bank said it expects Q4 revenue of $915.6 million, slightly above the consensus of $912.5 million and also higher than the company's guidance of $905 million to $915 million.

"We expect contribution from marketing, improving guest satisfaction scores, loyalty, and a higher income customer base, with mix headwinds likely to have continued to abate," UBS wrote.

Still, the firm said it was "somewhat cautious" on 2025 given the risk to same-store sales "from a still challenging macro and competitive factors."

The firm has a sell rating on the stock with a price target of $41.

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