Cheesecake Factory (NASDAQ:CAKE) Upgraded by JPMorgan Chase & Co. to "Neutral" Rating

Key Points

• JPMorgan Chase & Co. upgraded Cheesecake Factory from underweight to neutral and kept a $68 price target, implying about 20% upside from the current share price.
• Recent analyst sentiment is mixed overall: the stock has a consensus Hold rating with an average price target of $64.94, while other firms have issued targets ranging from the mid-$60s to mid-$70s.
• Cheesecake Factory’s latest quarterly results beat expectations, with EPS of $1.05 versus the expected $1.03 and revenue of $978.83 million above estimates, alongside 5.6% year-over-year revenue growth.

Cheesecake Factory (NASDAQ:CAKE - Get Free Report) was upgraded by equities research analysts at JPMorgan Chase & Co. from an "underweight" rating to a "neutral" rating in a report released on Thursday. The firm presently has a $68.00 price objective on the restaurant operator's stock. JPMorgan Chase & Co.'s price objective points to a potential upside of 20.29% from the stock's current price.

CAKE has been the subject of a number of other reports. Robert W. Baird set a $65.00 price target on shares of Cheesecake Factory in a research report on Thursday, April 30th. Deutsche Bank Aktiengesellschaft restated a "hold" rating and issued a $68.00 price objective on shares of Cheesecake Factory in a report on Thursday, April 30th. Argus set a $72.00 target price on shares of Cheesecake Factory in a report on Friday, May 1st. Citigroup boosted their target price on Cheesecake Factory from $75.00 to $76.00 and gave the company a "buy" rating in a research report on Thursday, April 30th. Finally, Wells Fargo & Company raised their price target on Cheesecake Factory from $60.00 to $65.00 and gave the stock an "equal weight" rating in a research report on Thursday, April 30th. Six equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Hold" and a consensus price target of $64.94.

Cheesecake Factory Stock Performance

Cheesecake Factory stock opened at $56.53 on Thursday. The firm has a 50 day simple moving average of $59.43 and a 200-day simple moving average of $55.85. The stock has a market cap of $2.81 billion, a price-to-earnings ratio of 16.53, a price-to-earnings-growth ratio of 1.45 and a beta of 1.04. The company has a debt-to-equity ratio of 1.22, a current ratio of 0.59 and a quick ratio of 0.53. Cheesecake Factory has a 1-year low of $43.07 and a 1-year high of $69.70.

Cheesecake Factory (NASDAQ:CAKE - Get Free Report) last released its quarterly earnings data on Wednesday, April 29th. The restaurant operator reported $1.05 EPS for the quarter, beating analysts' consensus estimates of $1.03 by $0.02. The firm had revenue of $978.83 million for the quarter, compared to analysts' expectations of $964.57 million. Cheesecake Factory had a return on equity of 43.74% and a net margin of 4.34%.The firm's quarterly revenue was up 5.6% on a year-over-year basis. During the same period in the prior year, the firm posted $0.93 earnings per share. On average, analysts expect that Cheesecake Factory will post 4.03 EPS for the current year.

Insider Transactions at Cheesecake Factory

In other news, insider Ashley W. Hanscom sold 2,951 shares of Cheesecake Factory stock in a transaction dated Wednesday, February 25th. The stock was sold at an average price of $65.64, for a total value of $193,703.64. Following the completion of the transaction, the insider owned 11,041 shares in the company, valued at approximately $724,731.24. This trade represents a 21.09% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, EVP Spero G. Alex sold 4,790 shares of the company's stock in a transaction that occurred on Wednesday, February 25th. The stock was sold at an average price of $66.00, for a total transaction of $316,140.00. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 124,582 shares of company stock valued at $7,684,016 in the last 90 days. Insiders own 8.00% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Salomon & Ludwin LLC increased its position in shares of Cheesecake Factory by 226.5% in the 4th quarter. Salomon & Ludwin LLC now owns 604 shares of the restaurant operator's stock valued at $33,000 after purchasing an additional 419 shares during the last quarter. Global Retirement Partners LLC lifted its position in shares of Cheesecake Factory by 661.7% during the 4th quarter. Global Retirement Partners LLC now owns 716 shares of the restaurant operator's stock worth $36,000 after purchasing an additional 622 shares during the last quarter. NFSG Corp grew its stake in shares of Cheesecake Factory by 115.8% during the first quarter. NFSG Corp now owns 682 shares of the restaurant operator's stock worth $37,000 after purchasing an additional 366 shares in the last quarter. Root Financial Partners LLC increased its holdings in Cheesecake Factory by 973.2% in the fourth quarter. Root Financial Partners LLC now owns 880 shares of the restaurant operator's stock valued at $44,000 after buying an additional 798 shares during the last quarter. Finally, Arax Advisory Partners purchased a new position in Cheesecake Factory in the fourth quarter valued at $50,000. 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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