Cheesecake Factory (NASDAQ:CAKE) Director Alexander Cappello Sells 425 Shares of Stock

Key Points

• Director Alexander Cappello sold 425 Cheesecake Factory shares for approximately $48,327, reducing his holdings by 11.03% to 3,428 shares.
• Cheesecake Factory reported quarterly results that exceeded expectations, with $1.02 in EPS, $1.03 billion in revenue, and 13.9% year-over-year revenue growth.
• The company declared a quarterly dividend of $0.30 per share, while analyst sentiment remained mixed with a consensus “Hold” rating and a $95.47 target price.

The Cheesecake Factory Incorporated (NASDAQ:CAKE - Get Free Report) Director Alexander Cappello sold 425 shares of the firm's stock in a transaction dated Thursday, October 29th. The shares were sold at an average price of $113.71, for a total transaction of $48,326.75. Following the completion of the sale, the director owned 3,428 shares in the company, valued at $389,797.88. This represents a 11.03% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink.

Cheesecake Factory Stock Down 0.4%

Shares of Cheesecake Factory stock traded down $0.48 on Friday, reaching $112.64. The stock had a trading volume of 1,627,394 shares, compared to its average volume of 1,505,850. The company has a quick ratio of 0.52, a current ratio of 0.59 and a debt-to-equity ratio of 1.08. The stock has a market capitalization of $5.60 billion, a P/E ratio of 26.69, a P/E/G ratio of 1.63 and a beta of 1.04. The company has a 50 day moving average price of $108.02 and a 200 day moving average price of $79.68. The Cheesecake Factory Incorporated has a 1 year low of $43.07 and a 1 year high of $118.63.

Cheesecake Factory (NASDAQ:CAKE - Get Free Report) last posted its earnings results on Tuesday, October 27th. The restaurant operator reported $1.02 EPS for the quarter, beating analysts' consensus estimates of $0.96 by $0.06. The company had revenue of $1.03 billion during the quarter, compared to analysts' expectations of $1.01 billion. Cheesecake Factory had a net margin of 5.20% and a return on equity of 46.95%. Cheesecake Factory's revenue for the quarter was up 13.9% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.66 earnings per share. As a group, equities research analysts forecast that The Cheesecake Factory Incorporated will post 4.70 EPS for the current year.

Cheesecake Factory Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, November 24th. Stockholders of record on Tuesday, November 10th will be given a $0.30 dividend. The ex-dividend date of this dividend is Tuesday, November 10th. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.1%. Cheesecake Factory's dividend payout ratio (DPR) is presently 32.52%.

Institutional Investors Weigh In On Cheesecake Factory

A number of large investors have recently made changes to their positions in CAKE. Root Financial Partners LLC purchased a new stake in shares of Cheesecake Factory during the third quarter valued at $35,000. Carolina Wealth Advisors LLC purchased a new position in Cheesecake Factory in the 3rd quarter worth $36,000. Allworth Financial LP purchased a new position in Cheesecake Factory in the 2nd quarter worth $36,000. NFSG Corp raised its stake in Cheesecake Factory by 115.8% in the 1st quarter. NFSG Corp now owns 682 shares of the restaurant operator's stock worth $37,000 after acquiring an additional 366 shares during the last quarter. Finally, Global Retirement Partners LLC acquired a new stake in Cheesecake Factory during the 2nd quarter worth about $57,000. 94.48% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Cheesecake Factory

Here are the key news stories impacting Cheesecake Factory this week:

• Positive Sentiment: Third-quarter results showed solid momentum: total revenue exceeded $1.033 billion, and flagship restaurant guest traffic rose 9.5%. The company also surpassed consensus estimates for both revenue and earnings, suggesting continued customer demand. Cheesecake Factory: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Freedom Capital upgraded CAKE from “hold” to “strong-buy,” providing a bullish counterpoint to the day’s more cautious research. Freedom Capital analyst action
• Positive Sentiment: The company announced an opening date for a new location at West County Mall, indicating continued unit expansion, although the financial impact is likely limited in the near term. Cheesecake Factory sets opening date
• Neutral Sentiment: Barack Obama’s repeated Cheesecake Factory references have generated substantial media attention and may increase brand visibility, but the political dispute does not appear to change the company’s earnings outlook or operations. Seth Meyers praises Obama
• Neutral Sentiment: Stephens reaffirmed an “equal weight” rating, signaling that the firm sees limited near-term outperformance despite CAKE’s strong operating results. Stephens reaffirms Equal Weight rating
• Negative Sentiment: Zacks Research downgraded CAKE from “strong-buy” to “hold.” The stock also crossed below its 50-day moving average following the downgrade, reinforcing near-term technical and valuation concerns. Cheesecake Factory stock crosses below 50-day moving average

Analyst Ratings Changes

Several research analysts recently issued reports on the company. Jefferies Financial Group lowered Cheesecake Factory from a "buy" rating to a "hold" rating and upped their target price for the company from $75.00 to $88.00 in a research report on Wednesday, July 29th. William Blair reissued an "outperform" rating on shares of Cheesecake Factory in a report on Thursday. Citigroup dropped their price target on Cheesecake Factory from $128.00 to $127.00 and set a "buy" rating on the stock in a research note on Wednesday. Robert W. Baird upped their price objective on shares of Cheesecake Factory from $105.00 to $120.00 and gave the company a "neutral" rating in a report on Thursday, October 22nd. Finally, Freedom Capital raised shares of Cheesecake Factory from a "hold" rating to a "strong-buy" rating in a research report on Wednesday. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, twelve have assigned a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Cheesecake Factory has a consensus rating of "Hold" and a consensus price target of $95.47.

Cheesecake Factory Company Profile

The Cheesecake Factory Incorporated is a restaurant company best known for The Cheesecake Factory, a full-service casual dining brand offering an extensive menu of American and international-inspired dishes, along with a broad selection of cheesecakes and other desserts. The company also operates North Italia, an Italian restaurant concept, and owns Fox Restaurant Concepts, which develops and operates additional restaurant brands, including Flower Child and Culinary Dropout.

The company was founded by David Overton, who opened the first Cheesecake Factory restaurant in Beverly Hills, California, in 1978 after his parents began a cheesecake business.

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