Zacks Investment Research upgraded shares of The Cheesecake Factory Incorporated (NASDAQ:CAKE) from a sell rating to a hold rating in a research report sent to investors on Friday, October 27th.
According to Zacks, “Cheesecake Factory’s differentiated menu, operational distinction and unique ambiance appeal to customers. The company's several initiatives to boost sales and traffic volume like menu innovation, roll out of an improved server training program, launch of mobile payment app and increased focus on delivery service should help in future comps growth. However, the company’s profits have been under pressure owing to a rise in rates of wages. Higher labor and pre-openings costs coupled with expenses related to sales initiatives are likely to continue to hurt margins. Notably, Cheesecake Factory’s shares have underperformed the industry year to date. Estimates for the current quarter and year have also moved downward over the past 60 days, reflecting analyst's concern. Underperformance by Grand Lux Cafe further adds to the woes. Also, a lowered fiscal 2017 outlook due to a challenging U.S. restaurant space raises caution.”
A number of other brokerages also recently commented on CAKE. Piper Jaffray Companies reissued a buy rating and issued a $65.00 target price on shares of The Cheesecake Factory in a research note on Wednesday, July 26th. Wedbush reissued a buy rating on shares of The Cheesecake Factory in a research note on Thursday, July 13th. Barclays PLC cut their target price on shares of The Cheesecake Factory from $56.00 to $53.00 and set an equal weight rating on the stock in a research note on Wednesday, July 19th. Instinet assumed coverage on shares of The Cheesecake Factory in a report on Wednesday, July 12th. They set a neutral rating and a $50.00 price target for the company. Finally, Nomura assumed coverage on shares of The Cheesecake Factory in a report on Wednesday, July 12th. They set a neutral rating and a $50.00 price target for the company. Two research analysts have rated the stock with a sell rating, fourteen have assigned a hold rating and four have assigned a buy rating to the company. The stock currently has a consensus rating of Hold and a consensus price target of $49.24.
The Cheesecake Factory (CAKE) opened at $44.31 on Friday. The company has a debt-to-equity ratio of 0.05, a quick ratio of 0.37 and a current ratio of 0.51. The firm has a market cap of $2,028.75, a P/E ratio of 16.23, a price-to-earnings-growth ratio of 1.18 and a beta of 0.29. The Cheesecake Factory has a one year low of $38.34 and a one year high of $67.14.
The Cheesecake Factory (NASDAQ:CAKE) last posted its quarterly earnings results on Wednesday, November 1st. The restaurant operator reported $0.56 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.60 by ($0.04). The company had revenue of $555.40 million for the quarter, compared to analysts’ expectations of $566.09 million. The Cheesecake Factory had a return on equity of 21.65% and a net margin of 5.76%. The business’s revenue for the quarter was down .8% on a year-over-year basis. During the same period in the prior year, the business earned $0.70 EPS. equities analysts expect that The Cheesecake Factory will post 2.61 EPS for the current year.
The firm also recently announced a quarterly dividend, which will be paid on Tuesday, November 28th. Investors of record on Wednesday, November 15th will be issued a $0.29 dividend. The ex-dividend date is Tuesday, November 14th. This represents a $1.16 dividend on an annualized basis and a dividend yield of 2.62%. The Cheesecake Factory’s payout ratio is currently 42.80%.
In other The Cheesecake Factory news, Director Herbert Simon bought 25,000 shares of the company’s stock in a transaction that occurred on Monday, November 6th. The shares were acquired at an average cost of $43.50 per share, for a total transaction of $1,087,500.00. The purchase was disclosed in a legal filing with the SEC, which is available through this link. Insiders purchased a total of 25,730 shares of company stock worth $1,119,535 over the last quarter. Insiders own 8.40% of the company’s stock.
Several institutional investors have recently added to or reduced their stakes in the company. BlackRock Inc. grew its position in The Cheesecake Factory by 21,381.3% during the first quarter. BlackRock Inc. now owns 4,842,308 shares of the restaurant operator’s stock valued at $306,812,000 after purchasing an additional 4,819,766 shares in the last quarter. Kayne Anderson Rudnick Investment Management LLC grew its position in The Cheesecake Factory by 54.8% during the third quarter. Kayne Anderson Rudnick Investment Management LLC now owns 2,457,364 shares of the restaurant operator’s stock valued at $103,504,000 after purchasing an additional 869,579 shares in the last quarter. First Trust Advisors LP grew its position in The Cheesecake Factory by 750.5% during the third quarter. First Trust Advisors LP now owns 580,508 shares of the restaurant operator’s stock valued at $24,451,000 after purchasing an additional 512,255 shares in the last quarter. Renaissance Technologies LLC purchased a new position in The Cheesecake Factory during the second quarter valued at approximately $25,369,000. Finally, FMR LLC grew its position in The Cheesecake Factory by 445.8% during the first quarter. FMR LLC now owns 545,840 shares of the restaurant operator’s stock valued at $34,584,000 after purchasing an additional 445,840 shares in the last quarter. 98.67% of the stock is currently owned by institutional investors and hedge funds.
About The Cheesecake Factory
The Cheesecake Factory Incorporated is engaged in the restaurant and bakery business. As of March 2, 2017, the Company operated 208 Company-owned restaurants: 194 under The Cheesecake Factory mark, 13 under the Grand Lux Cafe mark and one under the Rock Sugar Pan Asian Kitchen mark. The Company’s segments include The Cheesecake Factory restaurants, and other.
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