The Cheesecake Factory Incorporated (NASDAQ:CAKE) Receives Consensus Rating of "Hold" from Analysts

Key Points

• Cheesecake Factory has a consensus analyst rating of “Hold”, based on coverage from 18 research firms. The average 12-month price target is about $64.94.
• The company recently beat quarterly earnings and revenue expectations, reporting EPS of $1.05 versus the $1.03 estimate and revenue of $978.83 million versus $964.57 million expected. Revenue rose 5.6% year over year.
• Cheesecake Factory also announced a quarterly dividend of $0.30 per share, implying an annualized payout of $1.20 and a 2.0% yield. Insider selling was notable, with executives selling shares in recent months.

The Cheesecake Factory Incorporated (NASDAQ:CAKE - Get Free Report) has been given an average rating of "Hold" by the eighteen research firms that are currently covering the stock, MarketBeat Ratings reports. Three analysts have rated the stock with a sell rating, nine have given a hold rating and six have issued a buy rating on the company. The average 12-month target price among brokers that have issued a report on the stock in the last year is $64.9412.

A number of equities research analysts have issued reports on CAKE shares. Barclays increased their price objective on shares of Cheesecake Factory from $58.00 to $60.00 and gave the stock an "underweight" rating in a research note on Thursday, April 30th. Weiss Ratings raised shares of Cheesecake Factory from a "hold (c+)" rating to a "buy (b-)" rating in a report on Monday, February 23rd. Mizuho set a $75.00 target price on shares of Cheesecake Factory in a report on Thursday, February 19th. Citigroup increased their target price 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. Finally, Stephens increased their target price on shares of Cheesecake Factory from $61.00 to $65.00 and gave the stock an "equal weight" rating in a report on Thursday, April 30th.

Cheesecake Factory Trading Up 0.9%

Shares of Cheesecake Factory stock opened at $61.14 on Friday. The company has a market capitalization of $3.04 billion, a price-to-earnings ratio of 17.88, a PEG ratio of 1.47 and a beta of 1.04. The company has a quick ratio of 0.53, a current ratio of 0.59 and a debt-to-equity ratio of 1.22. Cheesecake Factory has a 12-month low of $43.07 and a 12-month high of $69.70. The firm's 50-day moving average price is $59.02 and its two-hundred day moving average price is $56.17.

Cheesecake Factory (NASDAQ:CAKE - Get Free Report) last announced its quarterly earnings data on Wednesday, April 29th. The restaurant operator reported $1.05 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.03 by $0.02. The firm had revenue of $978.83 million for the quarter, compared to the consensus estimate of $964.57 million. Cheesecake Factory had a net margin of 4.34% and a return on equity of 43.74%. The business's revenue for the quarter was up 5.6% on a year-over-year basis. During the same period in the prior year, the company posted $0.93 earnings per share. On average, analysts forecast that Cheesecake Factory will post 4.01 earnings per share for the current fiscal year.

Cheesecake Factory Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, May 26th. Stockholders of record on Wednesday, May 13th will be issued a $0.30 dividend. The ex-dividend date of this dividend is Wednesday, May 13th. This represents a $1.20 dividend on an annualized basis and a dividend yield of 2.0%. Cheesecake Factory's dividend payout ratio is 35.09%.

Insider Transactions at Cheesecake Factory

In other news, EVP Spero G. Alex sold 4,790 shares of the stock in a transaction dated Wednesday, February 25th. The shares were sold at an average price of $66.00, for a total value of $316,140.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Matthew Eliot Clark sold 7,000 shares of the stock in a transaction dated Wednesday, February 25th. The stock was sold at an average price of $65.70, for a total transaction of $459,900.00. Following the completion of the transaction, the chief financial officer directly owned 44,090 shares of the company's stock, valued at $2,896,713. This trade represents a 13.70% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 124,582 shares of company stock valued at $7,684,016. 8.00% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Salomon & Ludwin LLC raised its holdings in 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 buying an additional 419 shares during the last quarter. Global Retirement Partners LLC raised its holdings in Cheesecake Factory by 661.7% in the 4th quarter. Global Retirement Partners LLC now owns 716 shares of the restaurant operator's stock valued at $36,000 after buying an additional 622 shares during the last quarter. NFSG Corp raised its holdings in Cheesecake Factory by 115.8% in the 1st quarter. NFSG Corp now owns 682 shares of the restaurant operator's stock valued at $37,000 after buying an additional 366 shares during the last quarter. Root Financial Partners LLC raised its holdings in Cheesecake Factory by 973.2% in the 4th 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 bought a new position in Cheesecake Factory in the 4th quarter valued at approximately $50,000. Institutional investors 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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