Cheesecake Factory (NASDAQ:CAKE) Cut to “Sell” at BidaskClub

BidaskClub downgraded shares of Cheesecake Factory (NASDAQ:CAKE) from a hold rating to a sell rating in a research note released on Monday morning, BidAskClub reports.

Other equities research analysts have also issued research reports about the stock. Wedbush raised their price target on shares of Cheesecake Factory from $48.00 to $50.00 and gave the stock a neutral rating in a report on Thursday, May 2nd. Telsey Advisory Group reissued a market perform rating and issued a $54.00 price target (up previously from $52.00) on shares of Cheesecake Factory in a report on Thursday, May 2nd. TheStreet lowered shares of Cheesecake Factory from a b rating to a c+ rating in a report on Wednesday, May 29th. Barclays raised their price target on shares of Cheesecake Factory from $40.00 to $42.00 and gave the stock an underweight rating in a report on Thursday, May 2nd. Finally, Raymond James set a $56.00 price target on shares of Cheesecake Factory and gave the stock a buy rating in a report on Thursday, May 2nd. Two research analysts have rated the stock with a sell rating, eleven have assigned a hold rating and two have issued a buy rating to the company’s stock. The stock presently has a consensus rating of Hold and an average target price of $52.67.

Shares of Cheesecake Factory stock opened at $43.03 on Monday. The company has a market cap of $1.97 billion, a price-to-earnings ratio of 17.71, a PEG ratio of 1.26 and a beta of 0.45. Cheesecake Factory has a 12-month low of $41.63 and a 12-month high of $60.19. The company has a debt-to-equity ratio of 1.78, a quick ratio of 0.26 and a current ratio of 0.35. The stock has a fifty day moving average price of $45.58.

Cheesecake Factory (NASDAQ:CAKE) last announced its quarterly earnings results on Wednesday, May 1st. The restaurant operator reported $0.62 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.60 by $0.02. The business had revenue of $599.48 million for the quarter, compared to analyst estimates of $603.03 million. Cheesecake Factory had a net margin of 4.24% and a return on equity of 19.54%. The company’s revenue was up 2.5% on a year-over-year basis. During the same quarter last year, the firm earned $0.56 EPS. As a group, sell-side analysts expect that Cheesecake Factory will post 2.66 earnings per share for the current year.

The business also recently announced a quarterly dividend, which was paid on Wednesday, May 29th. Stockholders of record on Thursday, May 16th were paid a dividend of $0.33 per share. This represents a $1.32 dividend on an annualized basis and a dividend yield of 3.07%. The ex-dividend date of this dividend was Wednesday, May 15th. Cheesecake Factory’s payout ratio is 54.32%.

In other Cheesecake Factory news, Director Laurence B. Mindel purchased 2,000 shares of the stock in a transaction that occurred on Thursday, May 16th. The stock was bought at an average cost of $47.50 per share, with a total value of $95,000.00. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Laurence B. Mindel purchased 1,500 shares of the stock in a transaction that occurred on Monday, May 6th. The shares were acquired at an average cost of $49.64 per share, with a total value of $74,460.00. The disclosure for this purchase can be found here. Insiders have bought a total of 4,200 shares of company stock worth $202,486 in the last ninety days. Insiders own 8.50% of the company’s stock.

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Amundi Pioneer Asset Management Inc. lifted its position in Cheesecake Factory by 84.6% during the 1st quarter. Amundi Pioneer Asset Management Inc. now owns 45,408 shares of the restaurant operator’s stock valued at $2,221,000 after acquiring an additional 20,815 shares during the period. Advisory Services Network LLC lifted its position in Cheesecake Factory by 379.3% during the 1st quarter. Advisory Services Network LLC now owns 647 shares of the restaurant operator’s stock valued at $32,000 after acquiring an additional 512 shares during the period. First Pacific Advisors LP purchased a new position in Cheesecake Factory during the 1st quarter valued at about $3,110,000. Marshall Wace North America L.P. purchased a new position in Cheesecake Factory during the 1st quarter valued at about $566,000. Finally, Marshall Wace LLP purchased a new position in Cheesecake Factory during the 1st quarter valued at about $3,355,000. 98.26% of the stock is owned by institutional investors.

Cheesecake Factory Company Profile

The Cheesecake Factory Incorporated engages in the operation of restaurants. 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 April 16, 2019, it owned and operated 219 full-service casual-dining restaurants in the United States, including Puerto Rico and Canada comprising 202 restaurants under The Cheesecake Factory name; 14 restaurants under the Grand Lux Café name; and 2 restaurants under the RockSugar Southeast Asian Kitchen name, as well as 22 The Cheesecake Factory restaurants under licensing agreements internationally.

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Analyst Recommendations for Cheesecake Factory (NASDAQ:CAKE)

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