Dear Friend,
Elon Musk is so desperate for electricity right now, he just did the unthinkable.
He shipped an entire industrial power plant across the Atlantic Ocean.
He’s currently burning nearly $1 billion a month because he cannot turn on the world’s largest supercomputer without equipment that usually takes 2 years to get.
But while the "retail crowd" waits for a SpaceX ticker symbol that doesn’t exist yet, the smart money is moving into the only supplier that can deliver on Musk’s timeline.
This small company is sitting on a $1.5 billion backlog for the exact hardware Musk’s "Colossus" site cannot scale without.
Wall Street still prices this like a sleepy industrial stock—but the June IPO will prove them wrong.
See the "Colossus" ticker before the surge hits in June >>
“The Buck Stops Here,”
Dylan Jovine
Further Reading from MarketBeat Media
Does Cheesecake Factory Stock Have Any Upside Left on the Menu?Authored by Jennifer Ryan Woods. Date Posted: 4/27/2026. 
Key Points
- Cheesecake Factory shares have rallied more than 25% year to date, but with the stock trading near the average analyst price target of around $62, there may be limited upside from current levels.
- The company has delivered strong performance despite industry headwinds, reporting record revenue, margin expansion, and unit growth in 2025 while also beating fourth-quarter earnings and revenue expectations.
- The upcoming earnings report could act as a catalyst if results exceed expectations and shift analyst estimates, but without a meaningful surprise, the stock may remain range-bound.
- Special Report: Meta, Google, Qualcomm, and Samsung all use this at work.
Investors in Cheesecake Factory (NASDAQ: CAKE) have had a sweet run recently, with shares rising more than 22% year to date. But based on Wall Street estimates, much of the upside may already be baked in. The stock hit an all-time intraday high near $70 in July before dropping into the $40s by November, as investors grew concerned about consumer traffic amid a softer macro environment and a highly competitive landscape.
Since then, shares have been edging higher. Over the five-month period between Nov. 24 and April 24, the stock is up more than 37% and is now trading just under $62. The casual-dining company’s resilience amid broader industry pressures appears to have supported the recent rally. When Cheesecake Factory reports first-quarter results on Wednesday, investors will be watching to see how the company continues to manage that backdrop. Consumer Sentiment, Costs, and Weather Have Pressured RestaurantsThe highly competitive restaurant industry has been facing several headwinds. Softer consumer sentiment has weighed on traffic, rising food and labor costs have pressured margins, and weather-related disruptions have dragged on sales. But Cheesecake Factory has done a solid job navigating those challenges. In 2025, the company reported record annual revenue, delivered margin expansion, and grew its unit base by about 7% with the addition of 25 new restaurants. In the company’s fourth-quarter earnings report released Feb. 18, it reported earnings of $1 per share, down from $1.04 a year earlier but 2 cents above Wall Street estimates. Revenue of about $962 million rose more than 4% year over year and topped expectations by nearly $13 million. Strong Execution Helped Offset Industry PressuresIn a press release announcing the Q4 results, Chief Executive David Overton addressed the difficult backdrop, saying, “Despite a more challenging operating environment across the restaurant industry, including weather-related impacts, revenue for the quarter finished within our expected range.” He added that resilience and strong operating execution helped margins and adjusted diluted earnings per share reach the higher end of expectations. “Our operators remained focused on the factors within their control, delivering year-over-year improvements in labor productivity, wage management, hourly staff and manager retention, and guest satisfaction,” he said. Looking ahead, the company said it anticipates first-quarter revenue of $955 million to $970 million. The outlook includes about a 1% weather-related impact and the closure of four restaurants in January. It expects adjusted net income margin to be about 5% at the midpoint of that range. The company also announced an increase to its dividend and expanded its share repurchase program for the quarter. For 2026, Cheesecake Factory said it expects total revenue of around $3.9 billion at the midpoint, with net income margin also around 5%. The company plans to open up to 26 new restaurants, with the majority slated for the second half of the year. Price Targets Suggest Limited UpsideShares of Cheesecake Factory, which had risen roughly 9% ahead of the Q4 report on Feb. 18, fell about 3% in the session following its release. At current levels, expectations point to limited upside or downside over the next year. The average 12-month price target for the stock is $62, which is 0.5% below the current price. Based on the targets issued over the past year, expectations range from about $50 to $75. The consensus rating on the stock is Hold. Of the 17 analysts covering Cheesecake Factory, four rate it a Sell, seven rate it a Hold, and six rate it a Buy. Cheesecake Factory Stock Has Outperformed PeersCheesecake Factory has been outperforming many of its peers. The stock’s roughly 26% gain over the last year has outpaced BJ’s Restaurants Inc. (NASDAQ: BJRI), which is up around 13%, Darden Restaurants Inc. (NYSE: DRI), which has gained roughly 1%, Bloomin’ Brands Inc. (BLMN), which is down more than 26%, and Cracker Barrel Old Country Store Inc. (NASDAQ: CBRL), which has fallen around 30%. From a valuation standpoint, the stock, which is trading at a price-to-earnings (P/E) ratio of around 21X, is a little higher than BJ’s Restaurants, which is trading at a P/E of roughly 18X. It is roughly even with Darden Restaurants, which is trading at about 21X. Bloomin’ Brands is trading at a significantly higher multiple of around 60X, while Cracker Barrel does not have an applicable P/E ratio, reflecting its lack of recent profitability. Upcoming Earnings Could Be a CatalystIf Q1 results come in stronger than expected, shares could move higher, particularly if they are driven by improved sales trends or better-than-expected margins, which could prompt analysts to revisit their estimates and price targets. At the same time, increased pressure on traffic, a more cautious consumer, or higher costs could have the opposite effect. Absent any meaningful surprises, the stock may continue to trade within a similar range. Cheesecake Factory has delivered solid execution in a difficult operating environment, which has helped fuel a strong rebound in the stock. But with shares now trading near consensus price targets, much of that progress appears to be reflected in the stock. Unless the company delivers a meaningful upside surprise, it may struggle to move significantly higher from current levels. . |
No comments:
Post a Comment