Cheesecake Factory (CAKE) is likely to report "solid" Q4 same-store sales when it report its earnings, UBS said in a note emailed Tuesday.

UBS said Q4 same-store sales would roughly be in line with expectations. The company's investors are expecting same-store sales of around 1.5%, while analysts have pegged it at 1.6%, according to UBS.

The company's Q4 margins are also likely to be in line with consensus and UBS said it expects Cheesecake Factory to reiterate most of its 2025 guidance.

The investment bank said it expects Q4 revenue of $915.6 million, slightly above the consensus of $912.5 million and also higher than the company's guidance of $905 million to $915 million.

"We expect contribution from marketing, improving guest satisfaction scores, loyalty, and a higher income customer base, with mix headwinds likely to have continued to abate," UBS wrote.

Still, the firm said it was "somewhat cautious" on 2025 given the risk to same-store sales "from a still challenging macro and competitive factors."

The firm has a sell rating on the stock with a price target of $41.

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