MarketWatch
Cheesecake Factory stock rally looks full, analysts say
A pair of Wall Street analysts are skeptical, recently downgrading shares of Cheesecake Factory Inc.’s stock (CAKE) in the wake of a 29% run-up in the restaurant name from the start of January through Monday’s close. “While CAKE could continue to benefit from customer brand affinity and earnings upside potential exists if targets are reached, we think potential pressured industry demand, ongoing cost headwinds and limited macro visibility highlight risk to the recent move higher in shares and expectations,” UBS analyst Dennis Geiger wrote in a note to clients Wednesday. The Cheesecake Factory has a number of factors working in its favor, including “uniquely strong brand perceptions, A+ locations, and solid execution,” in Geiger’s view.
