Shares of Cheesecake Factory (CAKE) plummeted 5.21% in Wednesday's trading session following the release of mixed third-quarter results and a series of analyst downgrades. The restaurant chain's stock price decline reflects growing concerns about its performance amid challenging macroeconomic conditions.
Cheesecake Factory reported Q3 adjusted earnings per share of $0.68, surpassing the FactSet consensus estimate of $0.60. However, the company's revenue of $907.2 million fell short of analysts' expectations of $912.6 million. This mixed performance, particularly the revenue miss, has raised concerns among investors about the company's growth prospects in the current economic environment.
Adding to the negative sentiment, several prominent Wall Street analysts have lowered their price targets for Cheesecake Factory. Barclays cut its target to $48 from $50, while Wells Fargo reduced its target to $55 from $60. Morgan Stanley also trimmed its price target to $49 from $50, maintaining an Underweight rating on the stock. These downgrades reflect growing skepticism about the company's near-term outlook and its ability to navigate ongoing challenges in the restaurant industry.
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