Cheesecake Factory (NASDAQ:CAKE) Announces Quarterly Earnings Results

Key Points

• Cheesecake Factory reported quarterly EPS of $1.44, exceeding the consensus estimate of $1.18 by $0.26. The company posted a 4.34% net margin and 43.74% return on equity.
• Shares rose to $89.01, near their 52-week high of $89.22, while the stock’s consensus analyst rating remained Hold with an average price target of $70.00.
• Analyst views were mixed: Oppenheimer raised its target to $91 and rated the stock “outperform,” while UBS and Barclays maintained “sell” or “underweight” ratings. Several institutional investors increased their positions, and institutional ownership reached 94.48%.

Cheesecake Factory (NASDAQ:CAKE - Get Free Report) posted its quarterly earnings results on Tuesday. The restaurant operator reported $1.44 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.18 by $0.26, FiscalAI reports. Cheesecake Factory had a net margin of 4.34% and a return on equity of 43.74%.

Cheesecake Factory Price Performance

Shares of Cheesecake Factory stock traded up $1.98 during midday trading on Tuesday, hitting $89.01. 1,541,112 shares of the company were exchanged, compared to its average volume of 1,328,067. The firm has a 50 day simple moving average of $74.55 and a 200-day simple moving average of $65.05. The company has a debt-to-equity ratio of 1.22, a current ratio of 0.59 and a quick ratio of 0.53. The firm has a market cap of $4.42 billion, a P/E ratio of 26.03, a PEG ratio of 1.98 and a beta of 1.01. Cheesecake Factory has a 52 week low of $43.07 and a 52 week high of $89.22.

Analysts Set New Price Targets

Several equities research analysts recently weighed in on CAKE shares. JPMorgan Chase & Co. upgraded shares of Cheesecake Factory from an "underweight" rating to a "neutral" rating and increased their target price for the company from $58.00 to $68.00 in a research note on Thursday, May 14th. Barclays upped their target price on Cheesecake Factory from $58.00 to $60.00 and gave the company an "underweight" rating in a research note on Thursday, April 30th. Oppenheimer lifted their price target on shares of Cheesecake Factory from $72.00 to $91.00 and gave the stock an "outperform" rating in a research note on Monday. UBS Group increased their price objective on shares of Cheesecake Factory from $53.00 to $60.00 and gave the company a "sell" rating in a research note on Thursday, July 23rd. Finally, Wells Fargo & Company raised their price objective on shares of Cheesecake Factory from $65.00 to $75.00 and gave the stock an "equal weight" rating in a report on Thursday, July 16th. Five equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $70.00.

Insiders Place Their Bets

In other news, Chairman David Overton sold 104,000 shares of the business's stock in a transaction on Friday, May 1st. The shares were sold at an average price of $61.02, for a total value of $6,346,080.00. Following the sale, the chairman owned 3,079,779 shares in the company, valued at approximately $187,928,114.58. The trade was a 3.27% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Alexander L. Cappello sold 2,490 shares of the company's stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $64.90, for a total transaction of $161,601.00. Following the completion of the sale, the director directly owned 6,171 shares in the company, valued at approximately $400,497.90. The trade was a 28.75% decrease in their position. The disclosure for this sale is available in the SEC filing. Corporate insiders own 8.00% of the company's stock.

Institutional Investors Weigh In On Cheesecake Factory

Hedge funds have recently made changes to their positions in the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in Cheesecake Factory by 4.6% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 28,742 shares of the restaurant operator's stock valued at $1,399,000 after buying an additional 1,268 shares in the last quarter. Woodline Partners LP raised its stake in shares of Cheesecake Factory by 30.9% in the first quarter. Woodline Partners LP now owns 92,664 shares of the restaurant operator's stock valued at $4,509,000 after acquiring an additional 21,887 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in shares of Cheesecake Factory by 8.5% in the first 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 acquiring an additional 8,592 shares during the last quarter. Northwestern Mutual Wealth Management Co. boosted its holdings in shares of Cheesecake Factory by 32.0% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 1,333 shares of the restaurant operator's stock worth $83,000 after acquiring an additional 323 shares in the last quarter. Finally, First Trust Advisors LP grew its position in Cheesecake Factory by 5.0% during the 2nd quarter. First Trust Advisors LP now owns 112,020 shares of the restaurant operator's stock worth $7,019,000 after acquiring an additional 5,326 shares during the last quarter. Institutional investors and hedge funds own 94.48% of the company's stock.

Cheesecake Factory Company Profile

The Cheesecake Factory Incorporated NASDAQ: CAKE is an American restaurant company and distributor renowned for its full-service casual-dining concept and specialty cheesecakes. Headquartered in Calabasas Hills, California, the company operates more than 200 restaurants under The Cheesecake Factory® brand across the United States, Puerto Rico and select international markets. In addition to sit-down dining, Cheesecake Factory franchised locations offer catering and take-out services, while a separate manufacturing arm supplies branded cheesecakes and desserts to supermarkets, hotels and other foodservice operators.

The origins of the brand trace back to a small cheesecake bakery founded in Detroit in the 1940s.

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