The Cheesecake Factory Incorporated (CAKE) Stock Rating Upgraded by Zacks Investment Research

Zacks Investment Research upgraded shares of The Cheesecake Factory Incorporated (NASDAQ:CAKE) from a sell rating to a hold rating in a report released on Thursday, November 2nd.

According to Zacks, “Cheesecake Factory’s third-quarter fiscal 2017 adjusted earnings per share of 56 lagged the Zacks Consensus Estimate by 6.7% and declined 20% year over year. Sales of $555.4 million also fell short of the consensus mark by 1.3% and decreased 0.8% year over year. Notably, a lowered fiscal 2017 outlook and reversal in positive comps trend due to prevailing challenging restaurant environment are concerning. Meanwhile, higher labor and pre-openings costs coupled with expenses related to sales initiatives are likely to pressurize profits in the near term. Cheesecake Factory’s shares have underperformed the industry in the past year. Even so, 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.”

CAKE has been the subject of a number of other research reports. Wells Fargo & Company cut their price target on shares of The Cheesecake Factory from $46.00 to $43.00 and set a market perform rating for the company in a report on Tuesday, October 24th. Barclays PLC cut their price target on shares of The Cheesecake Factory from $56.00 to $53.00 and set an equal weight rating for the company in a report on Wednesday, July 19th. Stephens lowered their price objective on shares of The Cheesecake Factory from $48.00 to $45.00 and set an equal weight rating for the company in a research report on Wednesday, October 11th. BidaskClub cut shares of The Cheesecake Factory from a sell rating to a strong sell rating in a research report on Thursday, July 27th. Finally, Robert W. Baird reaffirmed a hold rating and set a $49.00 price objective on shares of The Cheesecake Factory in a research report on Friday, September 8th. Two investment analysts have rated the stock with a sell rating, fourteen have given a hold rating and four have assigned a buy rating to the company. The stock presently has a consensus rating of Hold and an average price target of $48.00.

Shares of The Cheesecake Factory (NASDAQ:CAKE) opened at $45.21 on Thursday. The company has a market cap of $2,105.21, a PE ratio of 16.84, a price-to-earnings-growth ratio of 1.23 and a beta of 0.29. The company has a quick ratio of 0.37, a current ratio of 0.51 and a debt-to-equity ratio of 0.05. The Cheesecake Factory has a 1-year low of $38.34 and a 1-year high of $67.14.

The Cheesecake Factory (NASDAQ:CAKE) last announced its quarterly earnings results on Wednesday, November 1st. The restaurant operator reported $0.56 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.60 by ($0.04). The firm had revenue of $555.40 million for the quarter, compared to analyst estimates of $566.09 million. The Cheesecake Factory had a return on equity of 21.65% and a net margin of 5.76%. The firm’s quarterly revenue was down .8% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.70 EPS. equities research analysts expect that The Cheesecake Factory will post 2.61 earnings per share for the current year.

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The business also recently declared a quarterly dividend, which will be paid on Tuesday, November 28th. Investors of record on Wednesday, November 15th will be paid a dividend of $0.29 per share. The ex-dividend date is Tuesday, November 14th. This represents a $1.16 annualized dividend and a yield of 2.57%. The Cheesecake Factory’s dividend payout ratio is currently 42.80%.

In other The Cheesecake Factory news, Director Herbert Simon acquired 25,000 shares of the company’s stock in a transaction on Monday, November 6th. The shares were bought at an average cost of $43.50 per share, for a total transaction of $1,087,500.00. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Debby R. Zurzolo sold 2,415 shares of The Cheesecake Factory stock in a transaction on Thursday, November 9th. The shares were sold at an average price of $44.20, for a total transaction of $106,743.00. The disclosure for this sale can be found here. 8.40% of the stock is owned by company insiders.

Hedge funds and other institutional investors have recently bought and sold shares of the business. Victory Capital Management Inc. increased its stake in The Cheesecake Factory by 17.6% in the second quarter. Victory Capital Management Inc. now owns 3,216 shares of the restaurant operator’s stock valued at $162,000 after purchasing an additional 482 shares during the period. PNC Financial Services Group Inc. increased its stake in The Cheesecake Factory by 3.3% in the first quarter. PNC Financial Services Group Inc. now owns 3,420 shares of the restaurant operator’s stock valued at $218,000 after purchasing an additional 109 shares during the period. Riverhead Capital Management LLC increased its stake in The Cheesecake Factory by 105.5% in the second quarter. Riverhead Capital Management LLC now owns 3,493 shares of the restaurant operator’s stock valued at $176,000 after purchasing an additional 1,793 shares during the period. Oppenheimer Asset Management Inc. acquired a new position in The Cheesecake Factory in the first quarter valued at $254,000. Finally, Raymond James Financial Services Advisors Inc. acquired a new position in shares of The Cheesecake Factory during the second quarter worth about $205,000. Institutional investors own 99.31% of the company’s stock.

The Cheesecake Factory Company Profile

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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Analyst Recommendations for The Cheesecake Factory (NASDAQ:CAKE)

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