Insider Trading February 26, 2026

Cheesecake Factory Accounting Chief Disposes $193,688 in CAKE Shares Amid Mixed Operational Signals

Hanscom's late-February sale coincides with quarterly beats, falling same-store sales and analyst concerns over valuation

By Ajmal Hussain CAKE
Cheesecake Factory Accounting Chief Disposes $193,688 in CAKE Shares Amid Mixed Operational Signals
CAKE

Ashley W. Hanscom, Principal Accounting Officer of THE CHEESECAKE FACTORY INC (NASDAQ:CAKE), sold 2,951 shares on February 25, 2026 for $193,688, according to a Form 4 filing. The transaction occurs as the stock trades near $65 with a market capitalization of $3.24 billion and a notable 30.6% year-to-date gain. The company posted modest beats on revenue and adjusted EPS for fiscal Q4 2025, but same-store sales declined, and analysts have flagged valuation concerns.

Key Points

  • Principal Accounting Officer Ashley W. Hanscom sold 2,951 CAKE shares on February 25, 2026 for $193,688; Hanscom now holds 11,041 shares plus 11,110 restricted shares.
  • The Cheesecake Factory posted Q4 fiscal 2025 adjusted EPS of $1.00 and revenue of $961.56 million, both marginally above consensus estimates, while comparable restaurant sales fell 2.2% and North Italia same-store sales dropped 4.0%.
  • Market sentiment is mixed: CAKE stock is up 30.6% year-to-date with a $3.24 billion market cap, but InvestingPro flags the shares as appearing overvalued and analysts have adjusted ratings and price targets.

Transaction details

A Form 4 filed with the Securities and Exchange Commission shows that Ashley W. Hanscom, Principal Accounting Officer at THE CHEESECAKE FACTORY INC (NASDAQ:CAKE), sold 2,951 shares of the company's common stock on February 25, 2026. The shares were disposed of at a price of $65.635 per share, producing total proceeds of $193,688.

Post-sale holdings

Following the sale, Hanscom directly holds 11,041 shares of the company’s common stock. In addition to those free-standing holdings, she also directly owns 11,110 shares of restricted stock that remain subject to forfeiture under the terms disclosed by the company.

Market context

At the time of reporting, CAKE shares were trading at $65.08 and the company carried a market capitalization of approximately $3.24 billion. The stock has delivered a 30.6% return year-to-date. Separate analysis from InvestingPro cited in company materials characterizes the shares as appearing overvalued at current price levels. Investors are referenced to the company’s Pro Research Report, which is noted as available for CAKE and more than 1,400 other U.S. equities.

Recent operating results

The Cheesecake Factory released fourth-quarter fiscal 2025 results that narrowly exceeded analyst expectations. The company reported adjusted earnings per share of $1.00, slightly ahead of the $0.99 estimate, and revenue of $961.56 million, topping the consensus forecast of $949.61 million.

Despite the revenue and adjusted EPS beats, comparable restaurant sales at Cheesecake Factory locations declined by 2.2% year-over-year, a metric that signals difficulty in generating additional traffic or spending at existing sites. The company’s North Italia brand also recorded a same-store sales decline of 4.0%.

Analyst positioning

Following the quarterly report, UBS adjusted its price target for The Cheesecake Factory to $53 from $50 while maintaining a Sell rating. Separately, Stephens cut its recommendation to Equal Weight from Overweight but left its price target unchanged at $65. Stephens attributed the downgrade to valuation pressures despite the company’s ability to exceed revenue and adjusted EPS expectations for the quarter.


Summary of the situation

The insider sale by the company’s principal accounting officer occurred against a backdrop of modest financial outperformance on headline revenue and adjusted EPS, offset by declines in comparable restaurant sales and analyst notes highlighting valuation concerns.

Risks

  • Valuation concerns highlighted by InvestingPro analysis and analyst actions could weigh on market sentiment and share price volatility - impacts equity markets and investor allocations to consumer discretionary names.
  • Declining comparable restaurant sales and a 4.0% same-store sales drop at North Italia introduce near-term operational risk for the restaurant sector and could pressure margin recovery and growth assumptions.
  • Insider selling, while not uncommon, may be interpreted by some investors as a signal of reduced insider conviction, potentially adding to trading volatility in CAKE shares.

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