Key Points
- EVP Scarlett May sold 2,939 CAKE shares at an average price of $114.12, generating $335,398.68 and reducing her holdings by 16.11% to 15,302 shares.
- Cheesecake Factory reported stronger-than-expected quarterly results, with EPS of $1.02 versus the $0.96 consensus and revenue of $1.03 billion, up 13.9% year over year.
- The company declared a quarterly dividend of $0.30 per share, equivalent to $1.20 annually and a 1.1% yield; analysts’ consensus rating remains Hold with a $95.47 price target.
The Cheesecake Factory Incorporated (NASDAQ:CAKE - Get Free Report) Director Alexander Cappello sold 425 shares of the company's stock in a transaction dated Thursday, October 29th. The stock was sold at an average price of $113.71, for a total transaction of $48,326.75. Following the completion of the transaction, the director owned 3,428 shares of the company's stock, valued at approximately $389,797.88. This trade represents a 11.03% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link.
Cheesecake Factory Price Performance
Shares of NASDAQ:CAKE opened at $112.64 on Friday. The firm's 50 day moving average is $108.02 and its two-hundred day moving average is $79.68. The firm has a market capitalization of $5.61 billion, a P/E ratio of 26.69, a PEG ratio of 1.63 and a beta of 1.04. The company has a current ratio of 0.59, a quick ratio of 0.52 and a debt-to-equity ratio of 1.08. The Cheesecake Factory Incorporated has a 52 week low of $43.07 and a 52 week high of $118.63.
Cheesecake Factory (NASDAQ:CAKE - Get Free Report) last issued its quarterly earnings data on Tuesday, October 27th. The restaurant operator reported $1.02 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.96 by $0.06. Cheesecake Factory had a return on equity of 46.95% and a net margin of 5.20%. The business had revenue of $1.03 billion during the quarter, compared to the consensus estimate of $1.01 billion. During the same period in the previous year, the firm posted $0.66 earnings per share. The business's revenue was up 13.9% on a year-over-year basis. Analysts anticipate that The Cheesecake Factory Incorporated will post 4.70 earnings per share for the current year.
Cheesecake Factory Announces Dividend
The firm also recently announced a quarterly dividend, which will be paid on Tuesday, November 24th. Shareholders of record on Tuesday, November 10th will be paid a dividend of $0.30 per share. The ex-dividend date of this dividend is Tuesday, November 10th. This represents a $1.20 annualized dividend and a yield of 1.1%. Cheesecake Factory's payout ratio is presently 28.44%.
Analyst Upgrades and Downgrades
Several research firms have recently issued reports on CAKE. Robert W. Baird increased their price target on Cheesecake Factory from $105.00 to $120.00 and gave the stock a "neutral" rating in a research note on Thursday, October 22nd. Mizuho lifted their price objective on shares of Cheesecake Factory from $93.00 to $110.00 and gave the company a "neutral" rating in a research note on Friday, October 23rd. UBS Group upped their price objective on shares of Cheesecake Factory from $60.00 to $80.00 and gave the stock a "sell" rating in a report on Friday, October 23rd. Jefferies Financial Group lowered shares of Cheesecake Factory from a "buy" rating to a "hold" rating and increased their target price for the company from $75.00 to $88.00 in a research report on Wednesday, July 29th. Finally, Stephens reiterated an "equal weight" rating and issued a $100.00 target price on shares of Cheesecake Factory in a research report on Wednesday. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, twelve have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $95.47.
Get Our Latest Stock Analysis on CAKE
Institutional Investors Weigh In On Cheesecake Factory
Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Root Financial Partners LLC bought a new stake in shares of Cheesecake Factory in the 3rd quarter worth $35,000. Allworth Financial LP acquired a new stake in shares of Cheesecake Factory in the second quarter valued at $36,000. Carolina Wealth Advisors LLC bought a new position in Cheesecake Factory during the third quarter valued at about $36,000. NFSG Corp boosted its stake in Cheesecake Factory by 115.8% during the first quarter. NFSG Corp now owns 682 shares of the restaurant operator's stock valued at $37,000 after buying an additional 366 shares in the last quarter. Finally, Global Retirement Partners LLC bought a new position in Cheesecake Factory during the second quarter valued at about $57,000. Institutional investors own 94.48% of the company's stock.
Trending Headlines about Cheesecake Factory
Here are the key news stories impacting Cheesecake Factory this week:
- Positive Sentiment: Third-quarter results showed solid momentum: total revenue exceeded $1.033 billion, and flagship restaurant guest traffic rose 9.5%. The company also surpassed consensus estimates for both revenue and earnings, suggesting continued customer demand. Cheesecake Factory: 3 Key Takeaways for Long-Term Investors
- Positive Sentiment: Freedom Capital upgraded CAKE from “hold” to “strong-buy,” providing a bullish counterpoint to the day’s more cautious research. Freedom Capital analyst action
- Positive Sentiment: The company announced an opening date for a new location at West County Mall, indicating continued unit expansion, although the financial impact is likely limited in the near term. Cheesecake Factory sets opening date
- Neutral Sentiment: Barack Obama’s repeated Cheesecake Factory references have generated substantial media attention and may increase brand visibility, but the political dispute does not appear to change the company’s earnings outlook or operations. Seth Meyers praises Obama
- Neutral Sentiment: Stephens reaffirmed an “equal weight” rating, signaling that the firm sees limited near-term outperformance despite CAKE’s strong operating results. Stephens reaffirms Equal Weight rating
- Negative Sentiment: Zacks Research downgraded CAKE from “strong-buy” to “hold.” The stock also crossed below its 50-day moving average following the downgrade, reinforcing near-term technical and valuation concerns. Cheesecake Factory stock crosses below 50-day moving average
About Cheesecake Factory
(
Get Free Report)
The Cheesecake Factory Incorporated is a restaurant company best known for The Cheesecake Factory, a full-service casual dining brand offering an extensive menu of American and international-inspired dishes, along with a broad selection of cheesecakes and other desserts. The company also operates North Italia, an Italian restaurant concept, and owns Fox Restaurant Concepts, which develops and operates additional restaurant brands, including Flower Child and Culinary Dropout.
The company was founded by David Overton, who opened the first Cheesecake Factory restaurant in Beverly Hills, California, in 1978 after his parents began a cheesecake business.
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