Citi has revised its price target for Cheesecake Factory (CAKE, Financial), lowering it from $67 to $62 while maintaining a Buy rating on the stock. This adjustment comes as the company prepares to release its first-quarter financial results. Despite the lowered target, the firm remains optimistic about Cheesecake Factory’s performance, expecting it to align with the previously provided guidance.
The analysis points to sustained improvements in store-level margins, a trend that has been evident since the COVID-19 pandemic. One of the key factors contributing to this positive outlook is the company’s enhanced operational efficiencies, particularly through gains made from overcoming pandemic-related challenges and the benefit of having more experienced employees.
