Cheesecake Factory (NASDAQ:CAKE) Director Alexander Cappello Sells 425 Shares of Stock

The Cheesecake Factory Incorporated (NASDAQ:CAKE) Director Alexander Cappello sold 425 shares of the company’s stock in a transaction that occurred on Thursday, October 29th. The shares were sold at an average price of $113.71, for a total value of $48,326.75. Following the sale, the director owned 3,428 shares in the company, valued at $389,797.88. The trade was a 11.03% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website.

Cheesecake Factory Trading Down 0.4%

NASDAQ:CAKE opened at $112.64 on Friday. The company has a market cap of $5.61 billion, a PE ratio of 26.69, a P/E/G ratio of 1.63 and a beta of 1.04. The business’s 50 day moving average is $108.02 and its two-hundred day moving average is $79.68. The company has a quick ratio of 0.52, a current ratio of 0.59 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) last issued its quarterly earnings results on Tuesday, October 27th. The restaurant operator reported $1.02 earnings per share for the quarter, beating analysts’ consensus estimates of $0.96 by $0.06. The business had revenue of $1.03 billion during the quarter, compared to the consensus estimate of $1.01 billion. Cheesecake Factory had a return on equity of 46.95% and a net margin of 5.20%. The business’s quarterly revenue was up 13.9% on a year-over-year basis. During the same period in the previous year, the business earned $0.66 EPS. On average, analysts predict that The Cheesecake Factory Incorporated will post 4.70 EPS for the current year.

Cheesecake Factory Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, November 24th. Shareholders of record on Tuesday, November 10th will be issued a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date of this dividend is Tuesday, November 10th. Cheesecake Factory’s payout ratio is currently 28.44%.

Key Cheesecake Factory News

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

Wall Street Analyst Weigh In

A number of analysts have weighed in on CAKE shares. Wells Fargo & Company set a $116.00 target price on shares of Cheesecake Factory in a report on Wednesday. Robert W. Baird raised their price target on shares of Cheesecake Factory from $105.00 to $120.00 and gave the stock a “neutral” rating in a research report on Thursday, October 22nd. Argus lifted their price target on shares of Cheesecake Factory from $72.00 to $110.00 and gave the company a “buy” rating in a report on Thursday, July 30th. Morgan Stanley boosted their price objective on shares of Cheesecake Factory from $80.00 to $87.00 and gave the company an “equal weight” rating in a research report on Thursday, October 15th. Finally, Freedom Capital upgraded shares of Cheesecake Factory from a “hold” rating to a “strong-buy” rating in a research note on Wednesday. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, twelve have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $95.47.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Bank of New York Mellon Corp bought a new position in Cheesecake Factory during the 2nd quarter worth $38,020,000. Bamco Inc. NY acquired a new stake in Cheesecake Factory in the second quarter worth $35,793,000. PDT Partners LLC acquired a new stake in Cheesecake Factory in the second quarter worth $13,743,000. TD Waterhouse Canada Inc. bought a new stake in Cheesecake Factory in the third quarter valued at $13,792,000. Finally, Palisade Capital Management LP bought a new stake in Cheesecake Factory in the second quarter valued at $10,014,000. Institutional investors and hedge funds own 94.48% of the company’s stock.

About Cheesecake Factory

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.