Cheesecake Factory

Cheesecake Factory "hold," target price reduced - update
06/02/08 - Wedbush Morgan Securities

NEW YORK, June 2 (newratings.com) - Analyst Brian Moore of Wedbush Morgan maintains his "hold" rating on The Cheesecake Factory Inc (CAKE). The 12-month target price has been reduced from $21 to $20.In a research note published this morning, the analyst mentions that the company’s bi-annual menu, which is likely to roll out on June 13, is unlikely to include higher-priced entrees. Although a price increase of 2.5% by Cheesecake Factory in 2H08 is expected to signify effective brand management, it is unlikely to boost its margins, Wedbush Morgan adds. The downward revision in the target price reflects the recent multiples compression in the peer group, the analyst says.