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The Cheesecake Factory Incorporated (CAKE) Hits Fresh High: Is There Still Room to Run?
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Shares of Cheesecake Factory (CAKE - Free Report) have been strong performers lately, with the stock up 19.1% over the past month. The stock hit a new 52-week high of $118.64 in the previous session. Cheesecake Factory has gained 127.7% since the start of the year compared to the 0% gain for the Zacks Retail-Wholesale sector and the -9.5% return for the Zacks Retail - Restaurants industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on July 28, 2026, Cheesecake Factory reported EPS of $1.44 versus consensus estimate of $1.17.
For the current fiscal year, Cheesecake Factory is expected to post earnings of $4.61 per share on $4.03 in revenues. This represents a 22.28% change in EPS on a 7.3% change in revenues. For the next fiscal year, the company is expected to earn $5.12 per share on $4.31 in revenues. This represents a year-over-year change of 11.12% and 7.05%, respectively.
Valuation Metrics
Though Cheesecake Factory has recently hit a 52-week high, what is next for Cheesecake Factory? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Cheesecake Factory has a Value Score of C. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 24.9X current fiscal year EPS estimates, which is a premium to the peer industry average of 20.7X. On a trailing cash flow basis, the stock currently trades at 19.6X versus its peer group's average of 9.9X. Additionally, the stock has a PEG ratio of 1.85. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Cheesecake Factory currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Cheesecake Factory fits the bill. Thus, it seems as though Cheesecake Factory shares could have a bit more room to run in the near term.
How Does CAKE Stack Up to the Competition?
Shares of CAKE have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) . CBRL has a Zacks Rank of #1 (Strong Buy) and a Value Score of C, a Growth Score of A, and a Momentum Score of C.
Earnings were strong last quarter. Cracker Barrel Old Country Store, Inc. beat our consensus estimate by 395.00%, and for the current fiscal year, CBRL is expected to post earnings of $1.56 per share on revenue of $3.37 billion.
Shares of Cracker Barrel Old Country Store, Inc. have gained 53.1% over the past month, and currently trade at a forward P/E of 44.31X and a P/CF of 9.85X.
The Retail - Restaurants industry is in the top 40% of all the industries we have in our universe, so it looks like there are some nice tailwinds for CAKE and CBRL, even beyond their own solid fundamental situation.
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The Cheesecake Factory Incorporated (CAKE) Hits Fresh High: Is There Still Room to Run?
Shares of Cheesecake Factory (CAKE - Free Report) have been strong performers lately, with the stock up 19.1% over the past month. The stock hit a new 52-week high of $118.64 in the previous session. Cheesecake Factory has gained 127.7% since the start of the year compared to the 0% gain for the Zacks Retail-Wholesale sector and the -9.5% return for the Zacks Retail - Restaurants industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on July 28, 2026, Cheesecake Factory reported EPS of $1.44 versus consensus estimate of $1.17.
For the current fiscal year, Cheesecake Factory is expected to post earnings of $4.61 per share on $4.03 in revenues. This represents a 22.28% change in EPS on a 7.3% change in revenues. For the next fiscal year, the company is expected to earn $5.12 per share on $4.31 in revenues. This represents a year-over-year change of 11.12% and 7.05%, respectively.
Valuation Metrics
Though Cheesecake Factory has recently hit a 52-week high, what is next for Cheesecake Factory? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Cheesecake Factory has a Value Score of C. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 24.9X current fiscal year EPS estimates, which is a premium to the peer industry average of 20.7X. On a trailing cash flow basis, the stock currently trades at 19.6X versus its peer group's average of 9.9X. Additionally, the stock has a PEG ratio of 1.85. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Cheesecake Factory currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Cheesecake Factory fits the bill. Thus, it seems as though Cheesecake Factory shares could have a bit more room to run in the near term.
How Does CAKE Stack Up to the Competition?
Shares of CAKE have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) . CBRL has a Zacks Rank of #1 (Strong Buy) and a Value Score of C, a Growth Score of A, and a Momentum Score of C.
Earnings were strong last quarter. Cracker Barrel Old Country Store, Inc. beat our consensus estimate by 395.00%, and for the current fiscal year, CBRL is expected to post earnings of $1.56 per share on revenue of $3.37 billion.
Shares of Cracker Barrel Old Country Store, Inc. have gained 53.1% over the past month, and currently trade at a forward P/E of 44.31X and a P/CF of 9.85X.
The Retail - Restaurants industry is in the top 40% of all the industries we have in our universe, so it looks like there are some nice tailwinds for CAKE and CBRL, even beyond their own solid fundamental situation.