Cheesecake Factory stock rises amid retail earnings season
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 22 2024
0mins
Should l Buy CAKE?
Source: investopedia.com
Cheesecake Factory Inc's stock rose by 5.97% as it crossed above its 5-day SMA, indicating positive momentum despite the broader market's decline. The retail sector is currently in the spotlight as major companies prepare to report earnings, with analysts particularly focused on the upcoming results from Walmart and Carvana. This earnings season is expected to provide insights into consumer health and retail performance, which could influence investor sentiment moving forward.
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Analyst Views on CAKE
Wall Street analysts forecast CAKE stock price to fall
10 Analyst Rating
3 Buy
4 Hold
3 Sell
Hold
Current: 62.560
Low
50.00
Averages
60.33
High
72.00
Current: 62.560
Low
50.00
Averages
60.33
High
72.00
About CAKE
The Cheesecake Factory Incorporated is an experiential dining company focused on hospitality. The Company owns and operates about 352 restaurants throughout the United States and Canada under brands, including The Cheesecake Factory (215 locations), North Italia (43 locations), Flower Child (38 locations), and a collection within its Fox Restaurant Concepts (FRC) portfolio (49 locations). Internationally, 34 The Cheesecake Factory restaurants operate under licensing agreements. Its bakery division operates two facilities that produce cheesecakes and other baked products for its restaurants, international licensees, and third-party bakery customers. The Cheesecake Factory menu features about 225 items, exclusive of beverage and dessert items and including items presented on supplemental menus, such as its SkinnyLicious menu that offers items at 590 calories or less. Its menu offerings include appetizers, pizza, seafood, steaks, chicken, burgers, small plates, pastas, salads, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
The Cheesecake Factory Set to Release Q4 Earnings
- Earnings Announcement: The Cheesecake Factory (CAKE) is set to announce its Q4 earnings on February 18th after market close, with consensus EPS estimated at $0.99 and revenue at $948.89 million, reflecting a 3% year-over-year growth.
- Historical Performance: Over the past two years, CAKE has beaten EPS estimates 88% of the time and revenue estimates 50% of the time, indicating a solid track record of profitability.
- Estimate Revision Trends: In the last three months, EPS estimates have seen four upward revisions and six downward revisions, while revenue estimates have experienced two upward and five downward revisions, highlighting market uncertainty regarding the company's future performance.
- Focus on Long-Term Trends: Analysts emphasize that while the upcoming earnings report is important, long-term trends are crucial for determining the company's future growth potential, suggesting investors should consider its sustained growth capabilities.
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- Carvana Earnings Expectations: Analysts forecast Carvana to report earnings of $1.10 per share on revenue of $5.26 billion, with strong year-over-year growth in retail units and gross profit per unit, although investor concerns linger over a recent short-seller report alleging accounting irregularities.
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Cheesecake Factory Inc (CAKE): The Cheesecake Factory's rating increased from 62% to 81%, reflecting strong fundamentals and valuation, with a focus on its extensive restaurant operations and diverse menu offerings.
Sumitomo Mitsui Financial Group Inc (SMFG): This large-cap value stock's rating rose from 60% to 79%, showcasing its financial services across various segments, including wholesale and retail banking.
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The Cheesecake Factory Set to Release Q4 Earnings
- Earnings Announcement: The Cheesecake Factory (CAKE) is set to announce its Q4 earnings on February 18th after market close, with consensus EPS estimated at $0.99 and revenue at $948.89 million, reflecting a 3% year-over-year growth.
- Historical Performance: Over the past two years, CAKE has beaten EPS estimates 88% of the time and revenue estimates 50% of the time, indicating a solid track record of profitability.
- Estimate Revision Trends: In the last three months, EPS estimates have seen four upward revisions and six downward revisions, while revenue estimates have experienced two upward and five downward revisions, highlighting market uncertainty regarding the company's future performance.
- Focus on Long-Term Trends: Analysts emphasize that while the upcoming earnings report is important, long-term trends are crucial for determining the company's future growth potential, suggesting investors should consider its sustained growth capabilities.
See More
Retail Giants Earnings Season Nears Conclusion
- Earnings Calendar: This week, several retail, energy, and tech giants are set to report earnings, with investors particularly focused on Medtronic, Energy Transfer, and HIVE, while Carvana's Q4 results are due after Wednesday's close.
- Carvana Earnings Expectations: Analysts forecast Carvana to report earnings of $1.10 per share on revenue of $5.26 billion, with strong year-over-year growth in retail units and gross profit per unit, although investor concerns linger over a recent short-seller report alleging accounting irregularities.
- Walmart Earnings Focus: Walmart is expected to report earnings on Thursday, with estimates of $0.72 per share and revenue of $190.24 billion, as investors will closely monitor the growth of high-margin segments and commentary on consumer health.
- Opendoor Earnings Outlook: Opendoor is set to release its Q4 results after Thursday's close, with investors looking for updates on its turnaround plans and progress towards profitability by 2026, particularly regarding improvements in gross margins and the success of its AI-driven “capital-light” platform.
See More
GLP-1 Drug Market Set to Surge, Benefiting Lilly and Novo Nordisk
- Market Potential Surge: According to Circana's research, it is projected that by 2030, 35% of food and 37% of non-food units will come from GLP-1 households, indicating a significant increase in the drug's penetration into consumer daily life, potentially creating substantial market opportunities for related companies.
- New Drug Approval Outlook: Lilly's oral GLP-1 drug orforglipron is expected to receive FDA approval in 2026, providing a more convenient treatment option that could attract more patients to continue usage, thereby driving further growth for the company in the weight-loss drug market.
- Changing Consumer Habits: GLP-1 drug users are shifting their consumption patterns, with data showing a preference for healthier, protein-rich dining options, creating new market opportunities for the restaurant industry and prompting businesses to adjust menus to cater to this trend.
- Rising Demand for Healthy Foods: As GLP-1 drugs gain popularity, consumer demand for fresh foods is increasing, with NielsenIQ data indicating faster sales growth for fresh items located around the grocery store perimeter, posing a threat to packaged food companies lacking healthy options.
See More
Warren Labels Trump's Crypto Ventures an $800 Million Grift
- Crypto Regulation Call: Warren labeled Trump's crypto ventures as an '$800 million grift' during a Senate Banking Committee hearing, emphasizing the need to shut down this 'superhighway of corruption' to ensure effective crypto legislation, highlighting the urgent demand for regulatory oversight in the crypto industry.
- National Security Risk: Warren warned that Trump's stablecoin USD1 is not just a financial product but a vehicle for personal gain that could undermine U.S. security, reflecting the potential threats cryptocurrencies pose to national security interests.
- Legislative Challenges: Despite Warren's warnings that USD1 would make the president the regulator of his own financial product, the bill passed, demonstrating the powerful lobbying influence of the crypto industry on the legislative process.
- Federal Investigation Request: On December 16, Warren formally urged the Treasury Secretary and Attorney General to open a federal investigation into Trump's crypto activities, particularly focusing on funds linked to North Korean hackers, indicating concerns over regulatory gaps and their potential risks to the financial system.
See More
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- Laser Defense System Delivery: Elbit Systems, in collaboration with the Israeli government, successfully delivered its first 'Iron Beam' laser defense system after extensive testing, which can effectively intercept drones, mortars, and short-range rockets, marking a significant breakthrough in defense technology.
- Market Expansion Potential: The successful delivery of this technology not only enhances Israel's defense capabilities but also opens up new international market opportunities for Elbit, which is expected to drive future revenue growth.
- Strong Stock Performance: Elbit Systems' stock has more than doubled in the past year, currently just 3% off its 52-week high, reflecting strong investor confidence in its innovative technologies.
- Competitive Advantage in Industry: By introducing the laser defense system, Elbit not only strengthens its competitive position in the defense sector but also has the potential to attract more procurement orders from various countries, further solidifying its market leadership.
See More
Daily Upgrade Report for Validea's John Neff Strategy - December 12, 2025
Validea's Low PE Investor Model: Today's upgrades for Validea's Low PE Investor model, based on John Neff's strategy, highlight several stocks with improved ratings, indicating potential investment interest based on their fundamentals and valuations.
Cheesecake Factory Inc (CAKE): The Cheesecake Factory's rating increased from 62% to 81%, reflecting strong fundamentals and valuation, with a focus on its extensive restaurant operations and diverse menu offerings.
Sumitomo Mitsui Financial Group Inc (SMFG): This large-cap value stock's rating rose from 60% to 79%, showcasing its financial services across various segments, including wholesale and retail banking.
Voya Financial Inc (VOYA): Voya Financial's rating surged from 60% to 98%, indicating strong interest due to its comprehensive workplace benefits and savings solutions, catering to both individual and institutional clients.
See More
