The Cheesecake Factory Inc. (CAKE) Upgraded to “Buy” at Zacks Investment Research
Zacks Investment Research upgraded shares of The Cheesecake Factory Inc. (NASDAQ:CAKE) from a hold rating to a buy rating in a research report released on Tuesday morning. Zacks Investment Research currently has $58.00 price objective 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. “
A number of other research firms have also recently issued reports on CAKE. Stifel Nicolaus cut shares of The Cheesecake Factory from a buy rating to a sell rating and cut their target price for the company from $65.00 to $43.00 in a research note on Tuesday, July 26th. Robert W. Baird restated a neutral rating on shares of The Cheesecake Factory in a research report on Thursday, September 8th. Canaccord Genuity initiated coverage on shares of The Cheesecake Factory in a research report on Monday, August 22nd. They issued a hold rating and a $54.00 price objective for the company. Finally, Barclays PLC boosted their price objective on shares of The Cheesecake Factory from $53.00 to $54.00 and gave the stock an equal weight rating in a research report on Thursday, July 28th. One research analyst has rated the stock with a sell rating, twelve have assigned a hold rating, six have given a buy rating and one has issued a strong buy rating to the company’s stock. The stock presently has an average rating of Hold and a consensus price target of $54.73.
The Cheesecake Factory (NASDAQ:CAKE) traded down 2.64% during midday trading on Tuesday, hitting $50.08. The stock had a trading volume of 285,894 shares. The stock’s 50-day moving average is $51.35 and its 200-day moving average is $50.95. The Cheesecake Factory has a one year low of $44.16 and a one year high of $55.53. The company has a market cap of $2.32 billion, a P/E ratio of 19.98 and a beta of 0.45.
The Cheesecake Factory (NASDAQ:CAKE) last posted its earnings results on Wednesday, July 27th. The company reported $0.78 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.71 by $0.07. The Cheesecake Factory had a net margin of 5.81% and a return on equity of 22.04%. The company earned $558.86 million during the quarter, compared to analysts’ expectations of $562.96 million. During the same quarter in the previous year, the company posted $0.69 earnings per share. The Cheesecake Factory’s quarterly revenue was up 5.6% compared to the same quarter last year. Equities analysts predict that The Cheesecake Factory will post $2.75 EPS for the current fiscal year.
In other The Cheesecake Factory news, CFO Doug Benn sold 6,512 shares of the stock in a transaction that occurred on Monday, July 25th. The shares were sold at an average price of $53.00, for a total transaction of $345,136.00. Following the transaction, the chief financial officer now owns 51,344 shares in the company, valued at approximately $2,721,232. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. 8.50% of the stock is currently owned by company insiders.
Hedge funds and other institutional investors have recently made changes to their positions in the company. Acadian Asset Management LLC raised its position in shares of The Cheesecake Factory by 39.9% in the first quarter. Acadian Asset Management LLC now owns 11,440 shares of the company’s stock worth $607,000 after buying an additional 3,263 shares during the last quarter. Virginia Retirement System purchased a new stake in The Cheesecake Factory during the first quarter valued at about $478,000. Pacad Investment Ltd. raised its stake in The Cheesecake Factory by 75.1% in the first quarter. Pacad Investment Ltd. now owns 14,622 shares of the company’s stock valued at $776,000 after buying an additional 6,271 shares in the last quarter. Los Angeles Capital Management & Equity Research Inc. raised its stake in The Cheesecake Factory by 8.4% in the first quarter. Los Angeles Capital Management & Equity Research Inc. now owns 24,301 shares of the company’s stock valued at $1,290,000 after buying an additional 1,880 shares in the last quarter. Finally, Ngam Advisors L.P. raised its stake in The Cheesecake Factory by 14.5% in the first quarter. Ngam Advisors L.P. now owns 12,019 shares of the company’s stock valued at $638,000 after buying an additional 1,519 shares in the last quarter. Hedge funds and other institutional investors own 89.48% of the company’s stock.
The Cheesecake Factory Company Profile
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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