Small-cap stocks can be incredibly lucrative investments because their lack of analyst coverage leads to frequent mispricings.
However, these businesses (and their stock prices) often stay small because their subscale operations make it harder to expand their competitive moats.
Over the past six months, The Cheesecake Factory’s stock price fell to $50.87. Shareholders have lost 15.2% of their capital, which is disappointing considering the S&P 500 has climbed by 13%. This might have investors contemplating their next move.
Shares of restaurant company Cheesecake Factory (NASDAQ:CAKE)
jumped 3.3% in the afternoon session after Freedom Capital Markets initiated coverage on the company with a "Hold" rating and a $56 price target.
As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the sit-down dining industry, including The Cheesecake Factory (NASDAQ:CAKE) and its peers.
Wrapping up Q3 earnings, we look at the numbers and key takeaways for the sit-down dining stocks, including The Cheesecake Factory (NASDAQ:CAKE) and its peers.
The Russell 2000 (^RUT) is home to many small-cap stocks, offering investors the chance to uncover hidden gems before the broader market catches on.
However, these companies often come with higher volatility and risk, as their smaller size makes them more vulnerable to economic downturns.
The Cheesecake Factory delivered third quarter results that met most Wall Street expectations, with revenue growth driven by modest comparable sales gains at its flagship brand and ongoing margin improvements across its portfolio. Management highlighted the continued effectiveness of menu innovation, such as new appetizer and bowl offerings, which contributed to higher check mixes without increasing average guest spend. CEO David Overton pointed to “the strength and resilience of our brands” in a softer consumer environment, while operational efficiency and improved staff retention helped support healthy profitability.
Shares of restaurant company Cheesecake Factory (NASDAQ:CAKE)
fell 5.3% in the afternoon session after the company reported mixed third-quarter 2025 financial results, with a revenue miss overshadowing an earnings beat.
Restaurant company Cheesecake Factory (NASDAQ:CAKE) missed Wall Street’s revenue expectations in Q3 CY2025 as sales rose 4.8% year on year to $907.2 million. Its non-GAAP profit of $0.68 per share was 13% above analysts’ consensus estimates.
Restaurant company Cheesecake Factory (NASDAQ:CAKE) missed Wall Street’s revenue expectations in Q3 CY2025 as sales rose 4.8% year on year to $907.2 million. Its non-GAAP profit of $0.68 per share was 13.1% above analysts’ consensus estimates.
A number of stocks fell in the afternoon session after President Donald Trump threatened to impose "massive" tariffs on Chinese products, reigniting trade war fears.
Even if a company is profitable, it doesn’t always mean it’s a great investment.
Some struggle to maintain growth, face looming threats, or fail to reinvest wisely, limiting their future potential.
