Piper Sandler raises Cheesecake Factory stock price target to $62 on segment analysis

Investing.com - Piper Sandler raised its price target on Cheesecake Factory (NASDAQ:CAKE) to $62.00 from $54.00 on Monday, while maintaining a Neutral rating on the restaurant chain’s stock. The company’s shares have shown remarkable strength, delivering an 82% return over the past year and trading near its 52-week high of $69.70.

The price target increase follows Cheesecake Factory’s second-quarter 2025 earnings report released last week, which prompted the research firm to restructure its model to better account for the company’s relatively new segment reporting. According to InvestingPro data, 14 analysts have revised their earnings expectations upward for the upcoming period, with price targets ranging from $47 to $75.

Piper Sandler conducted a detailed analysis of recent same-store sales trends and profitability across each of Cheesecake Factory’s business segments, seeking insights to better anticipate the future direction of the company’s consolidated restaurant-level margin percentage.

Despite the higher price target, the research firm expressed caution about the restaurant chain’s future margin expansion prospects, noting that restaurant-level margin percentage expansion "will be much harder to come by from here."

Piper Sandler suggested that Cheesecake Factory’s "recent impressive multi-year period of share price outperformance might be due to take a breather soon," explaining the firm’s decision to maintain its Neutral stance despite the higher valuation.

In other recent news, The Cheesecake Factory reported its second-quarter earnings for 2025, exceeding analyst expectations. The company achieved an earnings per share (EPS) of $1.16, surpassing the projected $1.06. Additionally, The Cheesecake Factory’s revenue reached $956 million, slightly above the anticipated $947 million. These results highlight the company’s strong performance in the second quarter. Despite the positive earnings and revenue figures, the stock experienced a decline, although this is not the focus here. The company’s ability to outperform expectations may influence future analyst projections. These developments provide investors with essential insights into The Cheesecake Factory’s recent financial performance.

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