CAKE's Rewards App Attracts New Guests: Can Higher Frequency Follow?

The Cheesecake Factory Incorporated CAKE is seeing encouraging early results from its Cheesecake Rewards app, adding another potential catalyst for guest traffic and sales growth.

The app’s launch exceeded management’s expectations, generating strong member acquisition and engagement. Importantly, a significant portion of downloads came from guests who were not previously enrolled in the Rewards program, suggesting the platform is helping the company reach new customers. Management also noted that the app is attracting a broad demographic, including younger and more technology-oriented guests.

The early impact on frequency is particularly noteworthy. CAKE said it is seeing slightly better frequency, with both new menu offerings and Rewards contributing to the improvement. The app allows customers to make reservations, access rewards, order online and receive more personalized communications. Management expects the growing data pool to support more targeted engagement aimed at encouraging repeat visits.

The broader operating trends add to the optimism. Cheesecake Factory’s second-quarter traffic increased 2.7%, while management said trends modestly accelerated in the back half of the quarter even after the initial promotional giveaway ended.

Still, it is too early to quantify repeat frequency among newly acquired guests. If CAKE can convert these app-driven sign-ups into habitual visits, the Rewards platform could become an increasingly important engine for sustainable traffic growth.

Competitors Strengthen Digital Engagement to Boost Guest Frequency

CAKE’s focus on its Rewards app comes as major casual-dining peers also use digital tools and loyalty initiatives to deepen customer relationships. Darden Restaurants, Inc. DRI operates brands such as Olive Garden and LongHorn Steakhouse. The company has built a broad digital ecosystem around its restaurant concepts. Darden Restaurants’ loyalty and digital initiatives provide opportunities to maintain customer engagement, personalize interactions and encourage repeat visits.

Texas Roadhouse, Inc. TXRH is another relevant competitor, with its mobile platform supporting features such as online ordering, waitlist management and customer engagement. These capabilities help make restaurant visits more convenient while keeping Texas Roadhouse’s brand connected with guests between visits.

For CAKE, the opportunity extends beyond convenience. Management said its app is attracting guests who were not previously Rewards members and is providing data that can support more personalized offers and communications. The company is also seeing improved frequency. If these newly acquired guests become regular visitors, CAKE could strengthen traffic growth while making its digital platform an increasingly valuable competitive advantage.

CAKE’s Price Performance, Valuation & Estimates

Cheesecake Factory’s shares have surged 70.7% in the past six months, outperforming the Zacks Retail - Restaurants industry, the broader Retail and Wholesale sector and the S&P 500 index.

Price Performance

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On a forward 12-month basis, CAKE trades at a P/E of 22.15, slightly above the industry’s 22.14.

CAKE P/E (F12M)

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CAKE’s earnings estimates for 2026 and 2027 have moved higher over the past 60 days. The estimates project year-over-year earnings growth of 19.9% in 2026 and 11% in 2027, pointing to continued momentum over the next two years.

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CAKE currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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