Cheesecake Factory (NASDAQ:CAKE) Reaches New 52-Week High – What’s Next?

The Cheesecake Factory Incorporated (NASDAQ:CAKE)’s stock price reached a new 52-week high on Friday. The company traded as high as $118.63 and last traded at $115.8150, with a volume of 155,394 shares changing hands. The stock had previously closed at $116.59.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on CAKE shares. Citigroup boosted their target price on shares of Cheesecake Factory from $104.00 to $128.00 and gave the stock a “buy” rating in a research report on Wednesday. Stephens lifted their price target on Cheesecake Factory from $93.00 to $100.00 and gave the company an “equal weight” rating in a report on Thursday. Argus raised their price objective on shares of Cheesecake Factory from $72.00 to $110.00 and gave the company a “buy” rating in a research note on Thursday, July 30th. Oppenheimer boosted their price target on shares of Cheesecake Factory from $101.00 to $122.00 and gave the stock an “outperform” rating in a research report on Tuesday, October 6th. Finally, Jefferies Financial Group lowered Cheesecake Factory from a “buy” rating to a “hold” rating and increased their price target for the company from $75.00 to $88.00 in a research report on Wednesday, July 29th. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, eleven have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $90.33.

Cheesecake Factory Price Performance

The company has a debt-to-equity ratio of 1.08, a quick ratio of 0.52 and a current ratio of 0.59. The company has a market capitalization of $5.73 billion, a PE ratio of 31.27, a P/E/G ratio of 1.84 and a beta of 1.04. The stock has a 50 day moving average price of $107.55 and a two-hundred day moving average price of $84.16.

Cheesecake Factory (NASDAQ:CAKE) last released its quarterly earnings data on Tuesday, July 28th. The restaurant operator reported $1.44 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.18 by $0.26. The business had revenue of $1.03 billion during the quarter, compared to analyst estimates of $999.54 million. Cheesecake Factory had a net margin of 4.61% and a return on equity of 43.97%. Cheesecake Factory’s quarterly revenue was up 7.7% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.16 EPS. Equities analysts forecast that The Cheesecake Factory Incorporated will post 4.57 earnings per share for the current year.

Cheesecake Factory Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, August 25th. Shareholders of record on Tuesday, August 11th were issued a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date was Tuesday, August 11th. Cheesecake Factory’s dividend payout ratio is 32.52%.

Insider Transactions at Cheesecake Factory

In related news, President David M. Gordon sold 31,950 shares of the stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $110.03, for a total value of $3,515,458.50. Following the completion of the sale, the president owned 26,875 shares in the company, valued at approximately $2,957,056.25. This trade represents a 54.31% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Chairman David Overton sold 94,145 shares of the firm’s stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $106.27, for a total value of $10,004,789.15. Following the completion of the sale, the chairman owned 89,805 shares of the company’s stock, valued at $9,543,577.35. This represents a 51.18% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 213,749 shares of company stock worth $22,301,899. Insiders own 8.00% of the company’s stock.

Institutional Investors Weigh In On Cheesecake Factory

A number of hedge funds have recently made changes to their positions in CAKE. Public Employees Retirement System of Ohio acquired a new position in Cheesecake Factory in the second quarter worth $2,367,000. Oppenheimer Asset Management Inc. acquired a new position in shares of Cheesecake Factory during the second quarter valued at $2,606,000. Corient Private Wealth LP lifted its stake in shares of Cheesecake Factory by 269.9% during the second quarter. Corient Private Wealth LP now owns 100,951 shares of the restaurant operator’s stock valued at $8,030,000 after acquiring an additional 73,659 shares during the period. Headlands Technologies LLC lifted its stake in shares of Cheesecake Factory by 29.7% during the second quarter. Headlands Technologies LLC now owns 42,640 shares of the restaurant operator’s stock valued at $3,392,000 after acquiring an additional 9,765 shares during the period. Finally, Lotus Technology Management LP bought a new position in Cheesecake Factory in the second quarter valued at about $1,870,000. Institutional investors and hedge funds own 94.48% of the company’s stock.

Cheesecake Factory Company Profile

Cheesecake Factory Incorporated (NASDAQ: CAKE) operates full-service restaurants known for extensive menus, generous portions and a broad selection of cheesecakes and other desserts. Its flagship brand, The Cheesecake Factory, serves American cuisine influenced by international flavors, including appetizers, salads, pastas, seafood, steaks, burgers and specialty beverages.

The company also operates restaurants under the North Italia brand, which specializes in modern Italian cuisine, and owns Fox Restaurant Concepts, a collection of restaurant brands with varied culinary themes.