Cheesecake Factory (NASDAQ:CAKE) Hits New 12-Month High – Here’s Why

The Cheesecake Factory Incorporated (NASDAQ:CAKE)’s share price reached a new 52-week high during mid-day trading on Monday . The stock traded as high as $103.36 and last traded at $104.32, with a volume of 116942 shares changing hands. The stock had previously closed at $101.42.

Analyst Upgrades and Downgrades

A number of brokerages recently commented on CAKE. Wells Fargo & Company lifted their price objective on Cheesecake Factory from $65.00 to $75.00 and gave the stock an “equal weight” rating in a research report on Thursday, July 16th. Zacks Research upgraded shares of Cheesecake Factory from a “hold” rating to a “strong-buy” rating in a research report on Thursday. Morgan Stanley raised shares of Cheesecake Factory from an “underweight” rating to an “equal weight” rating and raised their target price for the company from $50.00 to $80.00 in a research note on Wednesday, July 29th. Citigroup lifted their price target on shares of Cheesecake Factory from $76.00 to $90.00 and gave the stock a “buy” rating in a research report on Friday, July 10th. Finally, Mizuho boosted their price target on shares of Cheesecake Factory from $85.00 to $93.00 and gave the stock a “neutral” rating in a research note on Wednesday, July 29th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, eleven have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, Cheesecake Factory presently has a consensus rating of “Hold” and a consensus target price of $79.81.

Cheesecake Factory Price Performance

The company has a debt-to-equity ratio of 1.22, a quick ratio of 0.53 and a current ratio of 0.59. The firm has a market capitalization of $5.17 billion, a P/E ratio of 28.26, a price-to-earnings-growth ratio of 1.83 and a beta of 1.01. The company has a 50-day moving average price of $77.60 and a 200-day moving average price of $66.20.

Cheesecake Factory (NASDAQ:CAKE) last announced its quarterly earnings data on Tuesday, July 28th. The restaurant operator reported $1.44 EPS for the quarter, topping analysts’ consensus estimates of $1.18 by $0.26. The business had revenue of $1.03 billion during the quarter, compared to analysts’ expectations of $999.54 million. Cheesecake Factory had a return on equity of 45.94% and a net margin of 4.61%.The firm’s quarterly revenue was up 7.7% compared to the same quarter last year. During the same period in the previous year, the firm earned $1.16 earnings per share. On average, sell-side analysts predict that The Cheesecake Factory Incorporated will post 4.43 earnings per share for the current year.

Cheesecake Factory Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, August 25th. Shareholders of record on Tuesday, August 11th will be issued a dividend of $0.30 per share. The ex-dividend date is Tuesday, August 11th. This represents a $1.20 dividend on an annualized basis and a yield of 1.2%. Cheesecake Factory’s dividend payout ratio (DPR) is 32.52%.

Insider Transactions at Cheesecake Factory

In related news, Director Alexander L. Cappello sold 2,490 shares of the stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $64.90, for a total value of $161,601.00. Following the sale, the director directly owned 6,171 shares in the company, valued at $400,497.90. This trade represents a 28.75% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Matthew Eliot Clark sold 68,900 shares of Cheesecake Factory stock in a transaction that occurred on Thursday, July 30th. The stock was sold at an average price of $99.30, for a total transaction of $6,841,770.00. Following the transaction, the chief financial officer directly owned 45,109 shares in the company, valued at $4,479,323.70. The trade was a 60.43% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 74,890 shares of company stock worth $7,353,371. 8.00% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Cheesecake Factory

Several large investors have recently bought and sold shares of the company. Salomon & Ludwin LLC raised its holdings in Cheesecake Factory by 226.5% in the fourth quarter. Salomon & Ludwin LLC now owns 604 shares of the restaurant operator’s stock worth $33,000 after purchasing an additional 419 shares during the period. Global Retirement Partners LLC grew its holdings in shares of Cheesecake Factory by 661.7% in the 4th quarter. Global Retirement Partners LLC now owns 716 shares of the restaurant operator’s stock valued at $36,000 after buying an additional 622 shares during the period. NFSG Corp grew its holdings in shares of Cheesecake Factory by 115.8% in the 1st quarter. NFSG Corp now owns 682 shares of the restaurant operator’s stock valued at $37,000 after buying an additional 366 shares during the period. Root Financial Partners LLC increased its position in shares of Cheesecake Factory by 973.2% in the 4th quarter. Root Financial Partners LLC now owns 880 shares of the restaurant operator’s stock valued at $44,000 after buying an additional 798 shares in the last quarter. Finally, Arax Advisory Partners bought a new stake in shares of Cheesecake Factory in the 4th quarter valued at $50,000. Institutional investors own 94.48% of the company’s stock.

Cheesecake Factory Company Profile

The Cheesecake Factory Incorporated (NASDAQ:CAKE) is an American restaurant company and distributor renowned for its full-service casual-dining concept and specialty cheesecakes. Headquartered in Calabasas Hills, California, the company operates more than 200 restaurants under The Cheesecake Factory® brand across the United States, Puerto Rico and select international markets. In addition to sit-down dining, Cheesecake Factory franchised locations offer catering and take-out services, while a separate manufacturing arm supplies branded cheesecakes and desserts to supermarkets, hotels and other foodservice operators.

The origins of the brand trace back to a small cheesecake bakery founded in Detroit in the 1940s.