The Cheesecake Factory Inc. (NASDAQ:CAKE) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Tuesday. The brokerage presently has a $58.00 target price on the stock. Zacks Investment Research’s target price would suggest a potential upside of 11.62% from the stock’s previous close.
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 brokerages have also recently issued reports on CAKE. Stifel Nicolaus cut shares of The Cheesecake Factory from a “buy” rating to a “sell” rating and lowered their target price for the stock from $65.00 to $43.00 in a research note on Tuesday, July 26th. Canaccord Genuity assumed coverage on shares of The Cheesecake Factory in a research note on Monday, August 22nd. They set a “hold” rating and a $54.00 target price on the stock. Robert W. Baird reaffirmed a “neutral” rating on shares of The Cheesecake Factory in a research note on Thursday, September 8th. Finally, Barclays PLC lifted their target price on shares of The Cheesecake Factory from $53.00 to $54.00 and gave the stock an “equal weight” rating in a research note on Thursday, July 28th. One equities research analyst has rated the stock with a sell rating, twelve have issued a hold rating, six have assigned a buy rating and one has assigned a strong buy rating to the company. The company currently has a consensus rating of “Hold” and an average price target of $54.73.
Shares of The Cheesecake Factory (NASDAQ:CAKE) traded down 0.56% during mid-day trading on Tuesday, reaching $51.67. 433,371 shares of the company traded hands. The firm has a market capitalization of $2.40 billion, a price-to-earnings ratio of 20.61 and a beta of 0.45. The firm has a 50-day moving average price of $51.33 and a 200 day moving average price of $50.97. The Cheesecake Factory has a 52 week low of $44.16 and a 52 week high of $55.53.
The Cheesecake Factory (NASDAQ:CAKE) last released its quarterly 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 firm had revenue of $558.86 million for the quarter, compared to analysts’ expectations of $562.96 million. During the same quarter last year, the company earned $0.69 EPS. The firm’s revenue for the quarter was up 5.6% compared to the same quarter last year. On average, analysts anticipate that The Cheesecake Factory will post $2.75 earnings per share for the current year.
In other The Cheesecake Factory news, CFO Doug Benn sold 6,512 shares of the business’s stock in a transaction dated Monday, July 25th. The shares were sold at an average price of $53.00, for a total transaction of $345,136.00. Following the sale, the chief financial officer now directly owns 51,344 shares in the company, valued at $2,721,232. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 8.50% of the company’s stock.
Institutional investors have recently made changes to their positions in the company. Wagner Bowman Management Corp increased its position in shares of The Cheesecake Factory by 0.8% in the second quarter. Wagner Bowman Management Corp now owns 4,240 shares of the company’s stock worth $204,000 after buying an additional 35 shares in the last quarter. BOKF NA increased its position in shares of The Cheesecake Factory by 0.4% in the second quarter. BOKF NA now owns 9,217 shares of the company’s stock worth $444,000 after buying an additional 38 shares in the last quarter. Hsbc Holdings PLC increased its position in shares of The Cheesecake Factory by 1.3% in the second quarter. Hsbc Holdings PLC now owns 7,883 shares of the company’s stock worth $379,000 after buying an additional 103 shares in the last quarter. Amalgamated Bank increased its position in shares of The Cheesecake Factory by 2.4% in the second quarter. Amalgamated Bank now owns 5,473 shares of the company’s stock worth $282,000 after buying an additional 130 shares in the last quarter. Finally, Public Employees Retirement System of Ohio increased its position in shares of The Cheesecake Factory by 0.3% in the second quarter. Public Employees Retirement System of Ohio now owns 68,569 shares of the company’s stock worth $3,301,000 after buying an additional 198 shares in the last quarter. 89.48% of the stock is owned by institutional investors and hedge funds.
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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