Goldman Sachs Rates Cheesecake Factory (CAKE) at Sell, Sees 24% Downside

Goldman Sachs resumed coverage on Cheesecake Factory (NASDAQ: CAKE) with a Sell rating and $20 price target, suggesting 24 percent downside form current levels.

The firm said CAKE is in the "middle age" stage of its restaurant lifecycle, which comes with "impending saturation, substandard SSS, declining returns on capital and ultimately multiple compression."

Goldman said despite early warning signs, CAKE is starting to reaccelerate unit growth, which they see as a risky strategy.

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 $26.36 yesterday.

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