Stephens analyst Jim Salera raised the firm’s price target on Cheesecake Factory (CAKE) to $50 from $45 and keeps an Overweight rating on the shares, which has been named the “Best Idea” in the firm’s restaurant coverage, replacing Portillo’s (PTLO). Foot traffic trends have been stronger than the broader full-service industry since 2023, driven by an extensive menu and desserts offering, strong operations, brand loyalty, and a growing off-premise channel, the analyst tells investors. Pricing actions, coupled with moderating inflation, have given “proof points” that margins should show year-over-year improvement each quarter in FY24, the analyst added.
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