Cheesecake Factory (NASDAQ:CAKE) was downgraded by analysts at Maxim Group from a “buy” rating to a “hold” rating in a research note issued on Friday, June 22nd, MarketBeat Ratings reports. They presently have a $60.00 price target on the restaurant operator’s stock. Maxim Group’s target price would indicate a potential upside of 8.97% from the company’s current price.
The analysts wrote, “We downgrade shares of The Cheesecake Factory (CAKE) to the share price reached our $60 price target yesterday. CAKE’s comp growth is accelerating, and we see renewed margin expansion, buybacks, and potentially an acquisition contributing to at least low-teen EPS growth, but we now believe these positives have been priced into shares. Our EPS estimates are unchanged at $0.83 for 2Q18 (vs. $0.81 consensus), $2.77 for 2018 (vs. $2.69 consensus), and $3.16 for 2019 (vs. $2.91 consensus). CAKE shares have risen 25% year-to-date vs. the industry average of a 1% drop year-to-date, and now trade at 19x forward P/E, inline with the five-year average.””
A number of other research analysts also recently commented on CAKE. BidaskClub downgraded Cheesecake Factory from a “hold” rating to a “sell” rating in a research note on Thursday, February 22nd. Telsey Advisory Group cut Cheesecake Factory from an “outperform” rating to a “market perform” rating and set a $48.00 price target for the company. in a research note on Thursday, February 22nd. Bank of America cut their price objective on Cheesecake Factory from $54.00 to $52.00 and set a “neutral” rating for the company in a report on Thursday, February 22nd. Morgan Stanley reaffirmed an “equal weight” rating and set a $49.00 target price (down from $50.00) on shares of Cheesecake Factory in a report on Thursday, February 22nd. Finally, BTIG Research upped their target price on Cheesecake Factory to $55.00 and gave the company a “buy” rating in a report on Thursday, February 22nd. Seventeen investment analysts have rated the stock with a hold rating and two have assigned a buy rating to the company. The stock currently has a consensus rating of “Hold” and a consensus price target of $50.09.
NASDAQ CAKE opened at $55.06 on Friday. The stock has a market capitalization of $2.56 billion, a PE ratio of 21.18, a PEG ratio of 1.45 and a beta of 0.27. The company has a current ratio of 0.48, a quick ratio of 0.36 and a debt-to-equity ratio of 0.05. Cheesecake Factory has a 1-year low of $38.34 and a 1-year high of $60.08.
Cheesecake Factory (NASDAQ:CAKE) last announced its earnings results on Wednesday, April 25th. The restaurant operator reported $0.56 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.68 by ($0.12). Cheesecake Factory had a net margin of 6.49% and a return on equity of 19.01%. The business had revenue of $590.69 million during the quarter, compared to analyst estimates of $583.76 million. During the same period in the previous year, the company earned $0.72 earnings per share. The business’s revenue for the quarter was up 4.8% on a year-over-year basis. sell-side analysts expect that Cheesecake Factory will post 2.68 EPS for the current fiscal year.
In other news, VP Debby R. Zurzolo sold 14,856 shares of the firm’s stock in a transaction on Tuesday, May 1st. The stock was sold at an average price of $52.31, for a total value of $777,117.36. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, Chairman David Overton sold 93,300 shares of the firm’s stock in a transaction on Monday, April 30th. The stock was sold at an average price of $51.93, for a total value of $4,845,069.00. The disclosure for this sale can be found here. Insiders have sold a total of 133,110 shares of company stock valued at $6,953,971 over the last ninety days. Insiders own 8.80% of the company’s stock.
A number of hedge funds have recently bought and sold shares of CAKE. Nicola Wealth Management LTD. bought a new stake in shares of Cheesecake Factory in the first quarter valued at about $6,269,000. Summit Trail Advisors LLC lifted its holdings in shares of Cheesecake Factory by 15.1% in the first quarter. Summit Trail Advisors LLC now owns 21,150 shares of the restaurant operator’s stock valued at $856,000 after purchasing an additional 2,778 shares in the last quarter. Principal Financial Group Inc. lifted its holdings in shares of Cheesecake Factory by 4.4% in the first quarter. Principal Financial Group Inc. now owns 242,877 shares of the restaurant operator’s stock valued at $11,711,000 after purchasing an additional 10,164 shares in the last quarter. Legal & General Group Plc lifted its holdings in shares of Cheesecake Factory by 10.0% in the first quarter. Legal & General Group Plc now owns 42,784 shares of the restaurant operator’s stock valued at $2,063,000 after purchasing an additional 3,906 shares in the last quarter. Finally, Amundi Pioneer Asset Management Inc. lifted its holdings in shares of Cheesecake Factory by 102.1% in the first quarter. Amundi Pioneer Asset Management Inc. now owns 68,209 shares of the restaurant operator’s stock valued at $3,289,000 after purchasing an additional 34,467 shares in the last quarter. Hedge funds and other institutional investors own 97.62% of the company’s stock.
About Cheesecake Factory
The Cheesecake Factory Incorporated operates restaurants in the United States. The company produces cheesecakes and other baked products for own restaurants and international licensees, as well as external foodservice operators, retailers, and distributors. As of February 28, 2018, it operated 214 company-owned restaurants, including 199 restaurants under The Cheesecake Factory brand; 13 restaurants under the Grand Lux Cafe brand; and 2 restaurants under the RockSugar Southeast Asian Kitchen brand, as well as 20 The Cheesecake Factory branded restaurants under licensing agreements internationally.
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