Barclays on Cheesecake Factory's (CAKE) 3Q11; Comp Shortfall, Yet EPS Insulated and 2011 & 2012 Still Driving 15% EPS Growth

Barclays maintains an 'Equalweight' on Cheesecake Factory (NASDAQ: CAKE) price target lowered $3 to $30.00.

Barclays analyst says, "CAKE 3Q11 results will likely be viewed as a shortfall, similar to 2Q11. We believe such was the case on the top line (demonstrating a weakened consumer) rather than on the bottom line (demonstrating cost control/leverage), as EPS was still within guidance. Looking to 2012, initial guidance is for 15% EPS growth (adjusted, and similar to 2011), which should be viewed favorably in the current challenging macro. Unfortunately, with 3Q11 not likely to impress and 2011 consensus EPS likely to come down, we do not expect near-term stock price outperformance." (Barclays lowers FY11 EPS estimate from $1.66 to $1.64 and FY12 from $1.90 to $1.85)

For more ratings news on Cheesecake Factory click here and for the rating history of Cheesecake Factory click here.

Shares of Cheesecake Factory closed at $26.05 yesterday.

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