Cheesecake Factory soars to fresh record after impressive Q2 report
BUZZ-Cheesecake Factory soars to fresh record after impressive Q2 report Updates, adds analyst commentary
** Restaurant chain The Cheesecake Factory's CAKE.O shares soar 10.6% to new record peak of $98.48 on Weds after qtrly results surpassed Wall Street's expectations
** CAKE shares, which hit an all-time intraday peak of $89.22 on Tues, had already surged 76% YTD as of last close
** Calabasas Hills, California-based firm late Tues posted Q2 rev of $1.03 bln and adj EPS of $1.44, above analysts' estimates of $997.95 mln and $1.17, respectively, per LSEG data
** Comparable restaurant sales increased 5.8% yr/yr
** CEO David Overton said co's comparable sales and traffic outperformed the broader casual dining industry, adding that momentum from menu innovation, rewards programs and marketing efforts drove top-line performance
** CAKE opened 4 new restaurants in Q2, and expects to open up to 26 more in fiscal 2026
** At least 9 brokerages hike their PTs: Morgan Stanley upgrades to 'equal-weight' from 'underweight', raises PT to $80 from $50
** Piper Sandler calls the report impressive, saying Q2 comparable sales significantly above consensus view of +2.1%, and above its sense of investor expectations
** Of 21 brokerages, 4 rate the stock "strong buy", 16 rate "hold" and 1 recommends "sell"; median PT of $90 up from $67 a month ago
(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))