Manatuck Hill Partners LLC Makes New $795,000 Investment in The Cheesecake Factory Incorporated $CAKE

Key Points

• Manatuck Hill Partners initiated a 10,000-share Cheesecake Factory position valued at approximately $795,000, while institutional investors collectively own 94.48% of CAKE’s outstanding shares.
• Cheesecake Factory exceeded quarterly expectations, reporting $1.44 in EPS versus the $1.18 consensus and $1.03 billion in revenue, up 7.7% year over year. Analysts maintain an average “Hold” rating with an $81 price target.
• CAKE recently paid a $0.30 quarterly dividend, equivalent to a 1.1% yield, but insiders have sold approximately $22.5 million worth of shares over the past 90 days.

Manatuck Hill Partners LLC bought a new stake in The Cheesecake Factory Incorporated (NASDAQ:CAKE - Free Report) in the 2nd quarter, according to its most recent filing with the SEC. The fund bought 10,000 shares of the restaurant operator's stock, valued at approximately $795,000.

Other hedge funds have also recently added to or reduced their stakes in the company. Oppenheimer Asset Management Inc. acquired a new position in shares of Cheesecake Factory in the second quarter worth about $2,606,000. Fisher Asset Management LLC grew its position in shares of Cheesecake Factory by 7.2% during the 4th quarter. Fisher Asset Management LLC now owns 503,184 shares of the restaurant operator's stock valued at $25,401,000 after acquiring an additional 33,959 shares during the period. Louisiana State Employees Retirement System acquired a new stake in shares of Cheesecake Factory during the 1st quarter valued at about $1,111,000. California State Teachers Retirement System increased its stake in shares of Cheesecake Factory by 24.9% in the 1st quarter. California State Teachers Retirement System now owns 55,576 shares of the restaurant operator's stock valued at $3,043,000 after purchasing an additional 11,088 shares in the last quarter. Finally, Intech Investment Management LLC increased its stake in shares of Cheesecake Factory by 127.7% in the 4th quarter. Intech Investment Management LLC now owns 60,513 shares of the restaurant operator's stock valued at $3,055,000 after purchasing an additional 33,936 shares in the last quarter. 94.48% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

CAKE has been the topic of several research analyst reports. Argus raised their price objective on Cheesecake Factory from $72.00 to $110.00 and gave the company a "buy" rating in a report on Thursday, July 30th. Northcoast Research downgraded Cheesecake Factory from a "buy" rating to a "neutral" rating in a research note on Monday, June 15th. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and set a $68.00 target price on shares of Cheesecake Factory in a research report on Thursday, April 30th. Mizuho boosted their price target on shares of Cheesecake Factory from $85.00 to $93.00 and gave the stock a "neutral" rating in a report on Wednesday, July 29th. Finally, Stephens restated a "positive" rating on shares of Cheesecake Factory in a research report on Wednesday, July 29th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, ten have assigned a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the stock has an average rating of "Hold" and an average price target of $81.00.

Cheesecake Factory Price Performance

CAKE stock opened at $113.49 on Wednesday. The company has a debt-to-equity ratio of 1.08, a current ratio of 0.59 and a quick ratio of 0.52. The business has a 50 day simple moving average of $91.94 and a 200-day simple moving average of $72.28. The firm has a market capitalization of $5.65 billion, a PE ratio of 30.76, a price-to-earnings-growth ratio of 2.05 and a beta of 1.00. The Cheesecake Factory Incorporated has a 1 year low of $43.07 and a 1 year high of $118.46.

Cheesecake Factory (NASDAQ:CAKE - Get Free Report) last released its quarterly earnings data on Tuesday, July 28th. The restaurant operator reported $1.44 earnings per share for the quarter, topping analysts' consensus estimates of $1.18 by $0.26. The company had revenue of $1.03 billion for the quarter, compared to analyst estimates of $999.54 million. Cheesecake Factory had a return on equity of 43.97% and a net margin of 4.61%.The firm's revenue for the quarter was up 7.7% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.16 earnings per share. Equities research analysts anticipate that The Cheesecake Factory Incorporated will post 4.47 earnings per share for the current fiscal year.

Cheesecake Factory Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, August 25th. Stockholders of record on Tuesday, August 11th were issued a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a dividend yield of 1.1%. The ex-dividend date was Tuesday, August 11th. Cheesecake Factory's payout ratio is currently 32.52%.

Insider Activity

In other news, President David M. Gordon sold 31,950 shares of the business's stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $110.03, for a total transaction of $3,515,458.50. Following the transaction, the president owned 26,875 shares of the company's stock, valued at approximately $2,957,056.25. The trade was a 54.31% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Matthew Eliot Clark sold 68,900 shares of the company's stock in a transaction dated Thursday, July 30th. The shares were sold at an average price of $99.30, for a total transaction of $6,841,770.00. Following the completion of the sale, the chief financial officer directly owned 45,109 shares of the company's stock, valued at $4,479,323.70. This represents a 60.43% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 216,239 shares of company stock worth $22,463,500. Insiders own 8.00% of the company's stock.

Cheesecake Factory 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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