Cheesecake Factory was just the subject of unflattering headlines. It's actually one of the hottest stocks around.

By Steve Goldstein

The restaurant chain reports results after the closing bell on Tuesday

Former U.S. President Barack Obama compared President Donald Trump's White House modifications to "Saddam Hussein opening up a Cheesecake Factory."

The Cheesecake Factory captured social-media attention this weekend in an unflattering comparison a former president employed about the current occupant of the role.

"I don't know if you've noticed, but he seems very focused on home renovations," President Barack Obama said of President Donald Trump at a campaign rally in Cleveland, Ohio, speaking of the many renovations at the White House.

"There's gold everywhere, what's up with the gold? He's got the White House looking like Saddam Hussein opened up a Cheesecake Factory."

The Cheesecake Factory is indeed known for its ostentatious interiors. It's also been one of the hottest stocks in America, as the stock (CAKE) has more than doubled this year.

The restaurant chain, with 217 of its namesake outlets, is due to report results on Tuesday after the close. Deutsche Bank analysts say it may report third-quarter same-store sales growth of 12.8%, "reflecting benefits from menu innovation, social media/marketing engagement and its rewards program."

Consensus expectations are for sales growth of 8.7%, but major investors the analysts have talked to are expecting something closer to 13% to 14%.

It launched its first-ever mobile app in April, and last year introduced more value-oriented Bites and Bowls offerings. "These offerings not only support repeat traffic but often succeed in driving a higher average ticket as people combine meals from multiple plates or simply add-on to existing entrees," said JPMorgan analysts.

One of the first major restaurants to embrace DoorDash, the company gets about a fifth of its sales off premises.

The company highlighted its "cult status" in an earnings presentation, with a slide showing multiple articles from People magazine on celebrities who enjoy Cheesecake fare.

The company also operates a health-focused, fast-casual concept called Flower Child that JPMorgan analysts say could be spun off within two years.

Analysts overall are wary on the stock, with 71% rating it a hold, according to FactSet, as the stock price is basically at the median price target of $108.

-Steve Goldstein

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

10-26-26 0604ET