Zacks Investment Research upgraded shares of Cheesecake Factory (NASDAQ:CAKE) from a sell rating to a hold rating in a research note released on Thursday, January 4th.
According to Zacks, “Various initiatives to boost sales like menu innovation, roll-out of an improved server training program, launch of mobile payment app and focus on delivery bode well for Cheesecake Factory. However, a lowered fiscal 2017 outlook and reversal in positive comps trend due to prevailing challenging restaurant environment calls for caution. Meanwhile, the company’s profits have been under pressure owing to a rise in rates of wages. Moreover, as the company strives to expand its presence worldwide, pre-opening costs of outlets along with expenses related to sales initiatives will continue to hurt margins. Further, continued sluggish performance by Grand Lux Café raises concern. Shares have underperformed the industry over the past year. Earnings estimates for 2018 has gone down in the past 60 days.”
A number of other equities analysts have also recently issued reports on CAKE. Jefferies Group reaffirmed a hold rating and issued a $46.00 price objective on shares of Cheesecake Factory in a research note on Thursday, September 7th. Robert W. Baird reaffirmed a hold rating and issued a $49.00 price objective on shares of Cheesecake Factory in a research note on Friday, September 8th. Maxim Group reaffirmed a buy rating and issued a $57.00 price objective on shares of Cheesecake Factory in a research note on Tuesday, September 12th. BTIG Research reiterated a buy rating and issued a $50.00 target price on shares of Cheesecake Factory in a report on Wednesday, September 20th. Finally, Wedbush lowered shares of Cheesecake Factory from an outperform rating to a neutral rating and cut their target price for the stock from $52.00 to $44.00 in a report on Tuesday, September 26th. Two research analysts have rated the stock with a sell rating, fourteen have given a hold rating and four have issued a buy rating to the company’s stock. The stock presently has an average rating of Hold and an average target price of $48.81.
Cheesecake Factory (NASDAQ:CAKE) last released its quarterly earnings results on Wednesday, November 1st. The restaurant operator reported $0.56 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.60 by ($0.04). Cheesecake Factory had a net margin of 5.76% and a return on equity of 21.65%. The company had revenue of $555.40 million for the quarter, compared to the consensus estimate of $566.09 million. During the same period last year, the company earned $0.70 earnings per share. Cheesecake Factory’s revenue for the quarter was down .8% compared to the same quarter last year. analysts expect that Cheesecake Factory will post 2.6 EPS for the current fiscal year.
In other news, Director Herbert Simon acquired 25,000 shares of the firm’s stock in a transaction dated Monday, November 6th. The stock was bought at an average price of $43.50 per share, with a total value of $1,087,500.00. The purchase was disclosed in a document filed with the SEC, which is available through the SEC website. Also, VP Debby R. Zurzolo sold 2,306 shares of Cheesecake Factory stock in a transaction dated Wednesday, November 15th. The shares were sold at an average price of $44.75, for a total transaction of $103,193.50. The disclosure for this sale can be found here. Company insiders own 8.40% of the company’s stock.
Several hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. boosted its holdings in shares of Cheesecake Factory by 3.6% during the 2nd quarter. Vanguard Group Inc. now owns 4,171,917 shares of the restaurant operator’s stock worth $209,847,000 after buying an additional 146,756 shares during the period. Kayne Anderson Rudnick Investment Management LLC boosted its holdings in Cheesecake Factory by 54.8% in the 3rd quarter. Kayne Anderson Rudnick Investment Management LLC now owns 2,457,364 shares of the restaurant operator’s stock valued at $103,504,000 after purchasing an additional 869,579 shares during the period. State Street Corp raised its position in shares of Cheesecake Factory by 4.3% in the 2nd quarter. State Street Corp now owns 1,526,476 shares of the restaurant operator’s stock valued at $76,779,000 after buying an additional 63,301 shares in the last quarter. Macquarie Group Ltd. raised its position in shares of Cheesecake Factory by 7.5% in the 3rd quarter. Macquarie Group Ltd. now owns 1,453,386 shares of the restaurant operator’s stock valued at $61,216,000 after buying an additional 101,513 shares in the last quarter. Finally, Dimensional Fund Advisors LP raised its position in shares of Cheesecake Factory by 8.8% in the 3rd quarter. Dimensional Fund Advisors LP now owns 1,322,377 shares of the restaurant operator’s stock valued at $55,698,000 after buying an additional 106,475 shares in the last quarter. 97.54% of the stock is owned by institutional investors and hedge funds.
About Cheesecake Factory
The Cheesecake Factory Incorporated is engaged in the restaurant and bakery business. As of March 2, 2017, the Company operated 208 Company-owned restaurants: 194 under The Cheesecake Factory mark, 13 under the Grand Lux Cafe mark and one under the Rock Sugar Pan Asian Kitchen mark. The Company’s segments include The Cheesecake Factory restaurants, and other.
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