Cheesecake Factory: Valuation Asymmetry Now Tilts To The Downside

Cheesecake Factory trades at 14.7, 16.6x EBITDA, a 40% premium over peers despite 1.4% same-store traffic decline and negative mix. Price hikes drive average check gains but face headwinds from slowing growth and rising competition. CAKE stock downgraded to 'Sell' with shares expected to revert to high-$50s/low-$60s range.