First Week of February 2025 Options Trading For Cheesecake Factory (CAKE)
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 20 2024
0mins
Source: NASDAQ.COM
Put Contract Analysis: Selling a put contract at the $47.50 strike price allows an investor to potentially buy CAKE stock at a lower cost basis of $45.25, with a 59% chance of the contract expiring worthless, offering a potential 4.74% return on cash commitment.
Call Contract Strategy: Purchasing shares at $48.42 and selling a covered call at the $50.00 strike price could yield a total return of 7.70%, with a 54% chance of the call expiring worthless, providing an additional 4.44% return if it does.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy CAKE?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on CAKE
Wall Street analysts forecast CAKE stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CAKE is 59.29 USD with a low forecast of 49.00 USD and a high forecast of 70.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
7 Buy
4 Hold
4 Sell
Hold
Current: 57.080
Low
49.00
Averages
59.29
High
70.00
Current: 57.080
Low
49.00
Averages
59.29
High
70.00
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.
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.
Continue Reading
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.
Continue Reading