Zacks Investment Research upgraded shares of The Cheesecake Factory Inc. (NASDAQ:CAKE) from a hold rating to a buy rating in a report released on Tuesday. The firm currently has $58.00 target price on the stock.
According to Zacks, “Cheesecake Factory restaurants have posted positive comps in 26 consequent quarters. Notably, the company’s differentiated menu, operational distinction and unique ambiance appeal to customers. Going forward, various initiatives to boost sales and traffic volume like the roll out of an improved server training program and launch of mobile payment app should aid in keeping up the trend of positive comps. Meanwhile, on the back of solid bottom-line performance in the second quarter, the company raised its earnings guidance for 2016 at its second-quarter conference call. Further, the company’s focus on improving margins and its cash deployment policy bode well. Moreover, the company has positive record of earnings surprises in recent quarters. Estimates too have been mostly stable ahead of the company’s Q3 earnings release However, higher costs, soft consumer spending and continued underperformance by Grand Lux Cafe raise concern. “
Several other research analysts have also commented on CAKE. Stifel Nicolaus lowered shares of The Cheesecake Factory from a buy rating to a sell rating and dropped their price target for the stock from $65.00 to $43.00 in a research note on Tuesday, July 26th. Barclays PLC raised their target price on shares of The Cheesecake Factory from $53.00 to $54.00 and gave the company an equal weight rating in a research note on Thursday, July 28th. Robert W. Baird reissued a neutral rating on shares of The Cheesecake Factory in a report on Thursday, September 8th. Finally, Canaccord Genuity started coverage on shares of The Cheesecake Factory in a report on Monday, August 22nd. They issued a hold rating and a $54.00 price target for the company. One research analyst has rated the stock with a sell rating, twelve have assigned a hold rating, six have issued a buy rating and one has given a strong buy rating to the company’s stock. The company presently has an average rating of Hold and a consensus price target of $54.73.
The Cheesecake Factory (NASDAQ:CAKE) opened at 49.59 on Tuesday. The company has a 50-day moving average price of $51.28 and a 200-day moving average price of $50.94. The Cheesecake Factory has a 12-month low of $44.16 and a 12-month high of $55.53. The firm has a market capitalization of $2.30 billion, a PE ratio of 19.78 and a beta of 0.45.
The Cheesecake Factory (NASDAQ:CAKE) last released its quarterly earnings data on Wednesday, July 27th. The company reported $0.78 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.71 by $0.07. The firm had revenue of $558.86 million for the quarter, compared to analyst estimates of $562.96 million. The Cheesecake Factory had a net margin of 5.81% and a return on equity of 22.04%. The company’s revenue for the quarter was up 5.6% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.69 EPS. On average, analysts predict that The Cheesecake Factory will post $2.75 earnings per share for the current year.
In other news, CFO Doug Benn sold 6,512 shares of the stock in a transaction dated Monday, July 25th. The shares were sold at an average price of $53.00, for a total value of $345,136.00. Following the completion of the transaction, the chief financial officer now owns 51,344 shares of the company’s stock, valued at $2,721,232. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 8.50% of the company’s stock.
Several hedge funds and other institutional investors have recently bought and sold shares of CAKE. Vanguard Group Inc. boosted its position in The Cheesecake Factory by 5.0% in the second quarter. Vanguard Group Inc. now owns 3,344,266 shares of the company’s stock worth $160,992,000 after buying an additional 159,860 shares during the period. BlackRock Institutional Trust Company N.A. increased its stake in The Cheesecake Factory by 7.9% in the second quarter. BlackRock Institutional Trust Company N.A. now owns 1,607,009 shares of the company’s stock worth $77,361,000 after buying an additional 117,546 shares in the last quarter. State Street Corp increased its stake in The Cheesecake Factory by 1.3% in the first quarter. State Street Corp now owns 1,511,119 shares of the company’s stock worth $80,223,000 after buying an additional 19,751 shares in the last quarter. Dimensional Fund Advisors LP increased its stake in The Cheesecake Factory by 0.8% in the second quarter. Dimensional Fund Advisors LP now owns 1,233,310 shares of the company’s stock worth $59,371,000 after buying an additional 9,901 shares in the last quarter. Finally, Kayne Anderson Rudnick Investment Management LLC increased its stake in The Cheesecake Factory by 1.3% in the second quarter. Kayne Anderson Rudnick Investment Management LLC now owns 1,197,622 shares of the company’s stock worth $57,653,000 after buying an additional 15,466 shares in the last quarter. 89.48% of the stock is owned by hedge funds and other institutional investors.
About The Cheesecake Factory
The Cheesecake Factory Incorporated is engaged in the restaurant and bakery business. The Company operates approximately 200 Company-owned restaurants, including approximately 190 restaurants under The Cheesecake Factory mark and approximately 10 restaurants under the Grand Lux Cafe mark. The Company’s segments include The Cheesecake Factory restaurants, and other, which includes Grand Lux Cafe, RockSugar Pan Asian Kitchen, bakery and international licensing.
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