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Research Alert: CFRA Reiterates Buy Opinion On Shares Of Cheesecake Factory
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Research Alert: CFRA Reiterates Buy Opinion On Shares Of Cheesecake Factory
Nov 2, 2025 10:43 PM

01:25 AM EST, 11/03/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our 12-month price target by $12 to $65, 15x our 2026 EPS estimate (from 18x) and more in line with the 15x three-year average forward multiple, reflecting risks to restaurant traffic from softer consumer spending. We raise our 2025 EPS estimate to $3.97 from $3.87 and raise 2026's to $4.33 from $4.27. Following CAKE's Q3 earnings, we viewed the negative reaction in shares as a response to 2026 sales guidance that was below the Street's expectations by 100 bps. We viewed the quarter more positively, with adjusted operating margins (+50 bps Y/Y) and adjusted EPS growth (+18.7% Y/Y) demonstrating strong execution that offset a softer consumer environment and food cost volatility. Our opinion is reiterated at Buy, with our multiple reflecting a discount to the shares' 20x long-term average forward multiple, despite strong execution, accelerated store growth, and top-line drivers from newer restaurant concepts.

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