Cheesecake Factory (CAKE) PT Raised to $43 at BofA Securities

BofA Securities analyst Katherine Griffin raised the price target on Cheesecake Factory (NASDAQ: CAKE) to $43.00 (from $39.00) while maintaining a Neutral rating.

The analyst comments "CAKE’s positive traffic in Feb-Mar and QTD is notable as restaurant spending remains subdued (mainly at QSRs) on slower than expected rebound form bad weather in January. Across the portfolio (Cheesecake Factory, North Italia, Flower Child), CAKE’s traffic trends have been consistent. CAKE’s core customer skews higher income (~$100k HHI) and has proven more resilient (no signs of check management or trade down into more promotional CDRs). CAKE is also not seeing changes in behavior among lower income cohorts as the low frequency of lower income cohorts (mostly special occasions ~1-2x a year) and experiential nature of the Cheesecake Factory (i.e., not easily replicated at home) helps insulate from trade out risk."

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