Cheesecake Factory downgraded to Sell from Neutral at UBS

UBS analyst Dennis Geiger downgraded Cheesecake Factory to Sell from Neutral with an unchanged price target of $30. The analyst cites the 16% rise in shares year-to-date and the firm’s expectation for a more challenged macro environment in 2023 for the downgrade. The analyst sees risk to Cheesecake’s 2023 margin guidance and believes the company’s same-store-sales could decelerate from relatively solid levels through most of 2022. Potential pressured industry demand, ongoing cost headwinds and limited macro visibility highlight risk to the recent move higher in shares and expectations, UBS contends.