Barclays has revised its price target for Cheesecake Factory (CAKE, Financial), reducing it from $50 to $46 while maintaining an Underweight rating on the stock. This adjustment is part of a broader preview for the restaurant sector's first-quarter performance. Initial quarter comparisons were affected by challenging weather conditions, leading to a slow start. While a partial recovery was observed in March, it was not enough to restore full momentum, highlighting a potential slowdown in consumer spending.
Analysts noted that while many restaurants might not feel immediate effects from supply chain tariffs, the anticipated downturn in consumer demand could present challenges. This trend suggests a shift in spending behavior that could impact revenues for restaurant operators like Cheesecake Factory. As the sector navigates these challenges, both investors and stakeholders will be closely monitoring how these dynamics play out over the remainder of the year.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 17 analysts, the average target price for Cheesecake Factory Inc (CAKE, Financial) is $54.76 with a high estimate of $65.00 and a low estimate of $39.00. The average target implies an upside of 12.08% from the current price of $48.86. More detailed estimate data can be found on the Cheesecake Factory Inc (CAKE) Forecast page.
Based on the consensus recommendation from 22 brokerage firms, Cheesecake Factory Inc's (CAKE, Financial) average brokerage recommendation is currently 2.4, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Cheesecake Factory Inc (CAKE, Financial) in one year is $40.81, suggesting a downside of 16.48% from the current price of $48.86. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Cheesecake Factory Inc (CAKE) Summary page.
