Piper Sandler analysts raised the price target for Cheesecake Factory (NASDAQ:CAKE) to $39.00, up from $37.00, while maintaining a Neutral rating.
Cheesecake Factory announced its second-quarter 2024 results yesterday, showcasing solid performance. The restaurant chain's results were highlighted by a year-over-year increase of 91 basis points in restaurant-level margins, with a flow-through rate of approximately 37% for the quarter.
Cheesecake Factory is experiencing same-store sales (SSS) and traffic trends that are outperforming the industry at its core brands, according to management. However, trends at its non-core brands are more in line with recent industry data.
Management's guidance for third-quarter 2024 revenue came in about 2% below pre-print consensus at the midpoint, which aligns with current industry data. Despite this, the quarter was strong overall, with the company benefiting from continued stability and normalcy in the operating environment at the restaurant level.