Shares of both Dine Brands ( NYSE: DIN ) and Cheesecake Factory ( NASDAQ: CAKE ) slipped on Tuesday as Raymond James analyst Brian Vaccaro cut his rating on the stocks to Hold-equivalent.
Vaccaro cited 20%+ year to date gains for the two restaurant operators as rationale to advise “taking some chips off the table” to start 2023. The team also advised that EPS estimates for the year are likely overoptimistic on both Cheesecake Factory and Dine Brands.
Vaccaro removed his price target on the two stocks while also removing his prior Buy rating.
By contrast, Dave & Busters ( PLAY ) and Bloomin’ Brands ( BLMN ) were named the two “top stock ideas” in the restaurant space while Brinker International ( EAT ) was also assigned an Outperform rating. Price targets for each of the names were raised on Tuesday as a result of increased optimism on sales and margins as well as an admittedly more optimistic view of the US consumer than much of Wall Street.
Read more on Citi’s recent downgrade of Cheesecake Factory .
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RayJay cuts Dine Brands, Cheesecake Factory to Hold on filled valuations