Cheesecake Factory (NASDAQ:CAKE) Announces Quarterly Earnings Results, Beats Estimates By $0.10 EPS

Key Points

• Cheesecake Factory reported quarterly earnings of $1.16 per share, exceeding analyst expectations by $0.11.
• The company experienced a net margin of 4.33% and a return on equity of 46.06%.
• Insiders sold a total of 133,000 shares in the last three months, indicating significant insider selling activity.

Cheesecake Factory (NASDAQ:CAKE - Get Free Report) issued its quarterly earnings data on Tuesday. The restaurant operator reported $1.16 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.06 by $0.10, Zacks reports. Cheesecake Factory had a return on equity of 46.06% and a net margin of 4.33%. During the same quarter in the previous year, the firm earned $1.09 earnings per share. The business's revenue was up 5.7% on a year-over-year basis.

Cheesecake Factory Stock Down 4.1%

NASDAQ CAKE traded down $2.71 on Tuesday, reaching $63.18. The stock had a trading volume of 2,578,139 shares, compared to its average volume of 1,445,018. The business has a 50 day moving average price of $60.36 and a 200 day moving average price of $54.00. Cheesecake Factory has a 1 year low of $33.50 and a 1 year high of $69.70. The company has a market capitalization of $3.13 billion, a price-to-earnings ratio of 19.81, a P/E/G ratio of 1.72 and a beta of 1.16. The company has a current ratio of 0.53, a quick ratio of 0.43 and a debt-to-equity ratio of 1.85.

Analysts Set New Price Targets

CAKE has been the subject of several recent research reports. Argus set a $60.00 price objective on shares of Cheesecake Factory in a research report on Wednesday, May 14th. Robert W. Baird lifted their price target on Cheesecake Factory from $46.00 to $49.00 and gave the stock a "neutral" rating in a research note on Thursday, May 1st. Stephens restated an "overweight" rating and set a $60.00 price objective on shares of Cheesecake Factory in a research note on Thursday, May 1st. UBS Group lifted their target price on Cheesecake Factory from $45.00 to $50.00 and gave the stock a "sell" rating in a research report on Friday, July 18th. Finally, JPMorgan Chase & Co. upped their price target on Cheesecake Factory from $50.00 to $58.00 and gave the company an "underweight" rating in a research report on Wednesday, June 25th. Four research analysts have rated the stock with a sell rating, six have issued a hold rating and seven have given a buy rating to the company. According to data from MarketBeat, the company has a consensus rating of "Hold" and an average price target of $59.38.

Insider Buying and Selling at Cheesecake Factory

In related news, insider Keith Carango sold 50,500 shares of the company's stock in a transaction on Wednesday, May 28th. The shares were sold at an average price of $55.12, for a total value of $2,783,560.00. Following the completion of the sale, the insider directly owned 20,774 shares in the company, valued at approximately $1,145,062.88. This represents a 70.85% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, CFO Matthew Eliot Clark sold 42,900 shares of the stock in a transaction dated Tuesday, May 27th. The shares were sold at an average price of $56.00, for a total transaction of $2,402,400.00. Following the completion of the sale, the chief financial officer owned 40,878 shares of the company's stock, valued at approximately $2,289,168. The trade was a 51.21% decrease in their position. The disclosure for this sale can be found here. Insiders sold 133,000 shares of company stock worth $7,456,992 over the last ninety days. 8.40% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Cheesecake Factory

Several institutional investors and hedge funds have recently added to or reduced their stakes in CAKE. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in Cheesecake Factory by 8.5% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 109,800 shares of the restaurant operator's stock valued at $5,343,000 after purchasing an additional 8,592 shares during the period. Woodline Partners LP increased its position in Cheesecake Factory by 30.9% during the first quarter. Woodline Partners LP now owns 92,664 shares of the restaurant operator's stock worth $4,509,000 after acquiring an additional 21,887 shares during the period. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in Cheesecake Factory by 4.6% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 28,742 shares of the restaurant operator's stock valued at $1,399,000 after purchasing an additional 1,268 shares during the period. 94.48% of the stock is owned by institutional investors.

Cheesecake Factory Company Profile

The Cheesecake Factory Incorporated operates and licenses restaurants in the United States and Canada. The company operates bakeries that produce cheesecakes and other baked products for its restaurants, international licensees, third-party bakery customers, external foodservice operators, retailers, and distributors.