Insider Trading February 25, 2026

Cheesecake Factory Director Disposes of CAKE Shares Amid Stock Rally

Alexander Cappello sells 635 shares as company posts modest beat on Q4 fiscal 2025 results and faces same-store sales pressure

By Jordan Park CAKE
Cheesecake Factory Director Disposes of CAKE Shares Amid Stock Rally
CAKE

Alexander L. Cappello, a director at Cheesecake Factory Inc., sold 635 shares on February 23, 2026, totaling $40,474. The sale comes as CAKE stock has climbed more than 30% year-to-date. The company reported fiscal Q4 2025 results that modestly exceeded expectations but disclosed a drop in comparable restaurant sales. Analysts remain divided, citing margin improvement yet valuation concerns.

Key Points

  • Director Alexander L. Cappello sold 635 shares on February 23, 2026 for $63.74 per share, totaling $40,474.
  • Cheesecake Factory reported fiscal Q4 2025 adjusted EPS of $1.00 and revenue of $961.56 million, both slightly above consensus; comparable restaurant sales declined 2.2% year-over-year.
  • Analysts are split - UBS raised its price target to $53 but kept a Sell rating; Stephens downgraded to Equal Weight from Overweight, keeping a $65 target.

Alexander L. Cappello, a member of the board of directors at Cheesecake Factory Inc. (NASDAQ: CAKE), executed a sale of 635 shares of the companys common stock on February 23, 2026. The shares traded at $63.74 each, producing gross proceeds of $40,474.

Following the disposition, Cappello holds 178 shares directly in a custodial account and retains indirect ownership of 6,171 shares through Maricopa Capital LLC, of which he is the sole shareholder.

Cheesecake Factorys stock has appreciated sharply this year, rising more than 30% year-to-date and changing hands at $65.94 as of the latest quote, drawing nearer to its 52-week peak of $69.70.

Market commentary from InvestingPro included in the publicly reported disclosures notes that CAKE appears overvalued at current prices. The platform also lists six additional ProTips for investors looking for deeper analysis related to the companys roughly $3.29 billion market valuation.


On the operating front, Cheesecake Factory released fourth-quarter fiscal 2025 results that narrowly topped analyst expectations. The company posted adjusted earnings per share of $1.00, versus a projected $0.99, and reported revenue of $961.56 million compared with the consensus estimate of $949.61 million. Revenue grew 4.4% from the prior year period, which recorded $921.0 million.

Despite those beats, Cheesecake Factory recorded a decline in comparable restaurant sales, which fell 2.2% year-over-year. Management commentary and analyst notes pointed to improved restaurant-level margin execution as a driver of the better-than-expected top- and bottom-line numbers.

Equity research responses were mixed. UBS raised its price target on Cheesecake Factory to $53 from $50 while retaining a Sell rating, citing solid margin gains even as industry pressures affected comparable sales. Stephens moved in the other direction on the rating spectrum, downgrading the stock to Equal Weight from Overweight while maintaining a $65 price target, explicitly citing valuation concerns.

Analyst actions and Cappellos sale come against a backdrop of improving margins but persistent declines in same-store sales at both Cheesecake Factory and North Italia locations, which remain areas of investor focus and strategic concern for the company.

Risks

  • Declining comparable restaurant sales - impacts restaurant operators and consumer discretionary sector.
  • Valuation concerns at current price levels - affects equity investors and financial market sentiment around CAKE.
  • Analyst downgrades and mixed recommendations - could influence investor appetite in restaurant and casual dining stocks.

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