First Eagle Investment Management LLC Boosts Stock Position in The Cheesecake Factory Incorporated $CAKE

Key Points

• First Eagle Investment Management increased its Cheesecake Factory stake by 38.8% in the fourth quarter, buying 36,800 more shares and bringing its total holding to 131,591 shares worth about $6.64 million.
• The Cheesecake Factory posted better-than-expected quarterly results, with EPS of $1.05 versus estimates of $1.03 and revenue of $978.83 million versus expectations of $964.57 million, while revenue rose 5.6% year over year.
• The company declared a quarterly dividend of $0.30 per share payable May 26, and analysts currently have a consensus Hold rating with an average price target of $64.00.

First Eagle Investment Management LLC increased its holdings in The Cheesecake Factory Incorporated (NASDAQ:CAKE - Free Report) by 38.8% during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 131,591 shares of the restaurant operator's stock after purchasing an additional 36,800 shares during the quarter. First Eagle Investment Management LLC owned approximately 0.26% of Cheesecake Factory worth $6,643,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds also recently bought and sold shares of CAKE. Woodline Partners LP lifted its holdings in Cheesecake Factory by 1,059.3% in the 3rd quarter. Woodline Partners LP now owns 618,056 shares of the restaurant operator's stock worth $33,771,000 after buying an additional 564,744 shares during the period. Invesco Ltd. raised its holdings in shares of Cheesecake Factory by 24.7% during the third quarter. Invesco Ltd. now owns 2,057,118 shares of the restaurant operator's stock valued at $112,401,000 after acquiring an additional 407,223 shares in the last quarter. Voloridge Investment Management LLC lifted its stake in Cheesecake Factory by 54.0% in the third quarter. Voloridge Investment Management LLC now owns 747,046 shares of the restaurant operator's stock worth $40,819,000 after acquiring an additional 262,081 shares during the period. Qube Research & Technologies Ltd purchased a new stake in Cheesecake Factory in the third quarter worth $9,455,000. Finally, Engineers Gate Manager LP bought a new stake in Cheesecake Factory in the second quarter valued at $8,050,000. Hedge funds and other institutional investors own 94.48% of the company's stock.

Cheesecake Factory Price Performance

CAKE opened at $56.53 on Thursday. The company has a current ratio of 0.59, a quick ratio of 0.53 and a debt-to-equity ratio of 1.22. The company 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 stock has a fifty day simple moving average of $59.43 and a two-hundred day simple moving average of $55.85. The Cheesecake Factory Incorporated has a 12-month low of $43.07 and a 12-month high of $69.70.

Cheesecake Factory (NASDAQ:CAKE - Get Free Report) last announced its earnings results 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 net margin of 4.34% and a return on equity of 43.74%. The company's quarterly revenue was up 5.6% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.93 EPS. Research analysts predict that The Cheesecake Factory Incorporated will post 4.03 earnings per share for the current fiscal year.

Cheesecake Factory Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, May 26th. Investors of record on Wednesday, May 13th will be paid a dividend of $0.30 per share. The ex-dividend date of this dividend is Wednesday, May 13th. This represents a $1.20 annualized dividend and a yield of 2.1%. Cheesecake Factory's payout ratio is presently 35.09%.

Insiders Place Their Bets

In other news, EVP Scarlett May sold 5,206 shares of the business's stock in a transaction that occurred on Tuesday, March 10th. The stock was sold at an average price of $62.95, for a total value of $327,717.70. Following the sale, the executive vice president directly owned 25,715 shares of the company's stock, valued at $1,618,759.25. The trade was a 16.84% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, EVP Spero G. Alex sold 4,790 shares of the business'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 value of $316,140.00. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 124,582 shares of company stock valued at $7,684,016. Insiders own 8.00% of the company's stock.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on CAKE. Weiss Ratings raised shares of Cheesecake Factory from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Monday, February 23rd. Argus set a $72.00 target price on shares of Cheesecake Factory in a research report on Friday, May 1st. Barclays lifted their target price on shares of Cheesecake Factory from $58.00 to $60.00 and gave the company an "underweight" rating in a research note on Thursday, April 30th. Raymond James Financial downgraded shares of Cheesecake Factory from an "outperform" rating to a "market perform" rating in a research note on Wednesday, January 21st. Finally, Citigroup raised their price objective on shares of Cheesecake Factory from $75.00 to $76.00 and gave the stock a "buy" rating in a report on Thursday, April 30th. Six equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat.com, Cheesecake Factory presently has a consensus rating of "Hold" and an average target price of $64.00.

About Cheesecake Factory

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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