The Cheesecake Factory prices $500M upsized senior notes
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 26 2025
0mins
Source: SeekingAlpha
Convertible Senior Notes Offering: The Cheesecake Factory has priced a private offering of $500M in 2.00% convertible senior notes due 2030, increasing from an initial $450M, with settlement scheduled for February 28, 2025.
Use of Proceeds: The company plans to use approximately $130M of the net proceeds to repurchase shares and the remainder for general corporate purposes, including debt repayment.
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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: 67.220
Low
50.00
Averages
60.33
High
72.00
Current: 67.220
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 368 restaurants throughout the United States and Canada under brands, including The Cheesecake Factory (216 locations), North Italia (48 locations), Flower Child (43 locations), and a collection within its Fox Restaurant Concepts (FRC) portfolio (55 locations). Internationally, 35 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 licenses, 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, pasta, 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.
Cheesecake Factory Board Member Sells Shares
- Share Reduction Details: On June 2, 2026, Board member Alexander Cappello sold 2,490 shares through Maricopa Capital LLC for approximately $162,000, reducing his indirect holdings by 28.17%, from 8,839 to 6,349 shares.
- Historical Trading Pattern: Since May of last year, Cappello has decreased his total position from 21,862 shares to 6,349 shares, indicating a trend of smaller trades as the available share base has diminished, reflecting his adaptation to market dynamics.
- Company Financial Performance: The Cheesecake Factory reported $978.8 million in revenue for Q1 2023, up from $927.2 million the previous year, with comparable restaurant sales increasing by 1.6% year-over-year, indicating that existing locations are attracting more customers.
- Future Expansion Plans: The company expects to open up to 26 new restaurants in 2026, and with the increase in same-store sales, it suggests that revenue this year will surpass that of 2025, further driving the stock price upward.
See More
Cheesecake Factory Director Sells Shares Amid Price Surge
- Transaction Overview: Director Alexander Cappello sold 2,490 shares on June 2, 2026, at approximately $64.90 per share, totaling around $162,000, indicating a reduction in his indirect ownership and reflecting a broader trend of shareholder divestment.
- Market Performance Insight: This sale occurred as Cheesecake Factory shares approached a 52-week high of $69.70 reached in 2025, suggesting that Cappello's decision to sell may have been influenced by the rising stock price, indicating market confidence in the company.
- Financial Health Status: In Q1 of fiscal 2023, Cheesecake Factory reported revenues of $978.8 million, up from $927.2 million the previous year, with comparable restaurant sales increasing by 1.6% year-over-year, demonstrating improved customer attraction and market demand.
- Expansion Plans: The company expects to open up to 26 new restaurants in 2026, and combined with the growth in same-store sales, this suggests higher revenue this year compared to 2025, further driving stock price appreciation and boosting investor confidence.
See More
2026 FIFA World Cup to Boost Key Sectors and Stocks
- Sector Benefit Analysis: Deutsche Bank analysts noted that the 2026 FIFA World Cup will provide a temporary boost to sectors such as leisure, dining, media, tech, and gaming, particularly benefiting U.S. restaurant brands like Sweetgreen, Shake Shack, and The Cheesecake Factory due to their proximity to host cities.
- Advertising Revenue Expectations: The tournament is expected to generate the highest advertising revenue in U.S. history, with the number of participating teams increasing from 32 to 48, benefiting major players like Fox and Comcast's Telemundo, thereby driving growth in the media sector.
- Consumer Goods Market Outlook: Goldman Sachs forecasts that European and U.S. consumer staples, retail, lodging, and airlines will benefit from the influx of spectators traveling to the games, with beer companies such as AB InBev, Constellation Brands, and Molson Coors rated as
See More
The Cheesecake Factory CEO Sells Shares Amid Liquidity Event
- Transaction Overview: David Overton, Chairman and CEO of The Cheesecake Factory, exercised options to indirectly sell 104,000 shares on May 1, 2026, generating $6.3 million, indicating a liquidity event rather than a shift in investment strategy.
- Shareholding Analysis: Post-transaction, Overton retains 264,865 shares directly and 3,079,779 shares indirectly, maintaining over $200 million in economic interest despite selling 3.02% of his pre-trade holdings, reflecting ongoing confidence in the company's future performance.
- Market Context Impact: On the transaction date, shares were priced at $60.20, with a 25% increase over the past year, suggesting that Overton's sale occurred after a period of price appreciation, highlighting his strategic timing in the market.
- Motivation for Transaction: Although Overton's indirect holdings have sharply declined by 92.7% over the past year, this sale does not indicate a change in his investment posture but rather a routine exercise of options nearing expiration, underscoring his confidence in the company's long-term value.
See More
Restaurant Stocks Reassessed: Promising Outlook for Cava and Others
- Cava's Price Surge: Cava Group's stock has risen over 100% since its November low, indicating a market reassessment of its future store growth rate and comparable sales, reflecting investor confidence in its long-term growth potential.
- Dutch Bros Expansion Plans: Dutch Bros opened 55 new shops in Q4 2025 and plans to add 181 more in 2026, with projected revenue of $2 billion to $2.03 billion, showcasing its strong growth potential in the coffee market.
- Cheesecake Factory's Steady Performance: Despite industry challenges, Cheesecake Factory has delivered approximately 28% total returns over the past year, with its international expansion and diversified revenue sources maintaining its competitive edge, although insider stock sales have raised market concerns.
- Sweetgreen's Robotic Innovation: Sweetgreen is utilizing its Infinite Kitchen robotic salad assembly system to reduce labor costs, planning to open 15 to 20 new restaurants in 2026; while currently unprofitable, its long-term growth potential has attracted investor interest.
See More
Cheesecake Factory Officer Plans to Sell $6.54 Million in Common Stock via Form 144
- Stock Sale Announcement: Officer Overton David plans to sell 104,000 shares of its common stock on May 1.
- Market Value: The total market value of the shares being sold is approximately $6.54 million.
See More
Cheesecake Factory Board Member Sells Shares
- Share Reduction Details: On June 2, 2026, Board member Alexander Cappello sold 2,490 shares through Maricopa Capital LLC for approximately $162,000, reducing his indirect holdings by 28.17%, from 8,839 to 6,349 shares.
- Historical Trading Pattern: Since May of last year, Cappello has decreased his total position from 21,862 shares to 6,349 shares, indicating a trend of smaller trades as the available share base has diminished, reflecting his adaptation to market dynamics.
- Company Financial Performance: The Cheesecake Factory reported $978.8 million in revenue for Q1 2023, up from $927.2 million the previous year, with comparable restaurant sales increasing by 1.6% year-over-year, indicating that existing locations are attracting more customers.
- Future Expansion Plans: The company expects to open up to 26 new restaurants in 2026, and with the increase in same-store sales, it suggests that revenue this year will surpass that of 2025, further driving the stock price upward.
See More
Cheesecake Factory Director Sells Shares Amid Price Surge
- Transaction Overview: Director Alexander Cappello sold 2,490 shares on June 2, 2026, at approximately $64.90 per share, totaling around $162,000, indicating a reduction in his indirect ownership and reflecting a broader trend of shareholder divestment.
- Market Performance Insight: This sale occurred as Cheesecake Factory shares approached a 52-week high of $69.70 reached in 2025, suggesting that Cappello's decision to sell may have been influenced by the rising stock price, indicating market confidence in the company.
- Financial Health Status: In Q1 of fiscal 2023, Cheesecake Factory reported revenues of $978.8 million, up from $927.2 million the previous year, with comparable restaurant sales increasing by 1.6% year-over-year, demonstrating improved customer attraction and market demand.
- Expansion Plans: The company expects to open up to 26 new restaurants in 2026, and combined with the growth in same-store sales, this suggests higher revenue this year compared to 2025, further driving stock price appreciation and boosting investor confidence.
See More
2026 FIFA World Cup to Boost Key Sectors and Stocks
- Sector Benefit Analysis: Deutsche Bank analysts noted that the 2026 FIFA World Cup will provide a temporary boost to sectors such as leisure, dining, media, tech, and gaming, particularly benefiting U.S. restaurant brands like Sweetgreen, Shake Shack, and The Cheesecake Factory due to their proximity to host cities.
- Advertising Revenue Expectations: The tournament is expected to generate the highest advertising revenue in U.S. history, with the number of participating teams increasing from 32 to 48, benefiting major players like Fox and Comcast's Telemundo, thereby driving growth in the media sector.
- Consumer Goods Market Outlook: Goldman Sachs forecasts that European and U.S. consumer staples, retail, lodging, and airlines will benefit from the influx of spectators traveling to the games, with beer companies such as AB InBev, Constellation Brands, and Molson Coors rated as
See More
The Cheesecake Factory CEO Sells Shares Amid Liquidity Event
- Transaction Overview: David Overton, Chairman and CEO of The Cheesecake Factory, exercised options to indirectly sell 104,000 shares on May 1, 2026, generating $6.3 million, indicating a liquidity event rather than a shift in investment strategy.
- Shareholding Analysis: Post-transaction, Overton retains 264,865 shares directly and 3,079,779 shares indirectly, maintaining over $200 million in economic interest despite selling 3.02% of his pre-trade holdings, reflecting ongoing confidence in the company's future performance.
- Market Context Impact: On the transaction date, shares were priced at $60.20, with a 25% increase over the past year, suggesting that Overton's sale occurred after a period of price appreciation, highlighting his strategic timing in the market.
- Motivation for Transaction: Although Overton's indirect holdings have sharply declined by 92.7% over the past year, this sale does not indicate a change in his investment posture but rather a routine exercise of options nearing expiration, underscoring his confidence in the company's long-term value.
See More
Restaurant Stocks Reassessed: Promising Outlook for Cava and Others
- Cava's Price Surge: Cava Group's stock has risen over 100% since its November low, indicating a market reassessment of its future store growth rate and comparable sales, reflecting investor confidence in its long-term growth potential.
- Dutch Bros Expansion Plans: Dutch Bros opened 55 new shops in Q4 2025 and plans to add 181 more in 2026, with projected revenue of $2 billion to $2.03 billion, showcasing its strong growth potential in the coffee market.
- Cheesecake Factory's Steady Performance: Despite industry challenges, Cheesecake Factory has delivered approximately 28% total returns over the past year, with its international expansion and diversified revenue sources maintaining its competitive edge, although insider stock sales have raised market concerns.
- Sweetgreen's Robotic Innovation: Sweetgreen is utilizing its Infinite Kitchen robotic salad assembly system to reduce labor costs, planning to open 15 to 20 new restaurants in 2026; while currently unprofitable, its long-term growth potential has attracted investor interest.
See More
Cheesecake Factory Officer Plans to Sell $6.54 Million in Common Stock via Form 144
- Stock Sale Announcement: Officer Overton David plans to sell 104,000 shares of its common stock on May 1.
- Market Value: The total market value of the shares being sold is approximately $6.54 million.
See More
