In a report released today, Brian Bittner from Oppenheimer maintained a Hold rating on Cheesecake Factory (CAKE). The company’s shares closed yesterday at $46.38.
Bittner observed:
“CAKE’s model appears healthier with solid 4Q SSS (+1.9%) and ’19 EPS guidance bracketing the Street’s $2.67 estimate ($2.54-2.70). This is despite a $0.08 rent headwind from new accounting that was not in Street models—we expect only minor tweaks to estimates. CAKE is also committed to the ~$150M purchase of 3Q, which has strong unit economics (e.g. $7M+ AUVs) and could add a couple points to overall unit growth. While an interesting addition to the investment story, we maintain our Perform rating as we see balanced risk-reward.”
According to TipRanks.com, Bittner is a top 100 analyst with an average return of 11.4% and a 70.4% success rate. Bittner covers the Services sector, focusing on stocks such as Restaurant Brands International, Jack In The Box Inc, and Yum China Holdings.
Currently, the analyst consensus on Cheesecake Factory is a Hold with an average price target of $49.38, which is a 6.5% upside from current levels. In a report issued on February 11, Wedbush also maintained a Hold rating on the stock with a $48 price target.
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Based on Cheesecake Factory’s latest earnings release for the quarter ending September 30, the company reported a quarterly net profit of $28.48 million. In comparison, last year the company had a net profit of $57.74 million.
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Cheesecake Factory, Inc. engages in the operation of chain restaurants. Its menu offering includes appetizers, pizza, seafood, steaks, chicken, burgers, small plates, pastas, salads, sandwiches, omelettes, and desserts. The company was founded by David M. Overton, Oscar Overton, and Evelyn Overton in 1972 and is headquartered in Calabasas Hills, CA.
