CAKE Stock Up 72% in 6 Months: Can Its Discount P/E Fuel More Gains?

The Cheesecake Factory (CAKE) has surged 72.4% in six months, driven by record Q2 revenues exceeding $1 billion, 24% EPS growth, and a decade-high 20% restaurant margin. Strong comparable sales growth of 5.8%, menu innovation, successful Rewards app adoption, and improved traffic are fueling momentum. The stock trades at a P/E of 19.86X, below the industry average, while analysts have raised 2026 and 2027 earnings estimates. Flower Child brand shows strong growth, though North Italia faces challenges.