Deutsche Bank Reiterates Hold Rating on Cheesecake Factory (CAKE)

Deutsche Bank analyst Lauren Silberman reiterated a Hold rating and $38.00 price target on Cheesecake Factory (NASDAQ: CAKE).

The analyst comments "On 8/27, we hosted investor meetings with CAKE, including David Gordon (President), Matt Clark (CFO), Etienne Marcus (Finance & IR) and Ariel Papermaster (IR). Margin was a key area of focus, noting CAKE expects continued expansion in 2025, in large part driven by labor (benefits across P&L), and remains confident in returning to ~16% restaurant margins long-term. There was significant discussion around unit growth and the path to the ~7% target, with CAKE exuding confidence in the potential for North Italia and Flower Child, while the approach to scaling other FRC concepts will be more measured. CAKE expects underlying SSS to remain largely consistent despite a heightened promotional environment, reflecting benefits from the brand's experiential positioning and differentiated customer base (skews higher income; less exposure to transactional guests seeking deals)."

For an analyst ratings summary and ratings history on Cheesecake Factory click here. For more ratings news on Cheesecake Factory click here.

Shares of Cheesecake Factory closed at $40.58 yesterday.

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