The Cheesecake Factory Incorporated Announces Quarterly Dividend of $0.27 (NASDAQ:CAKE)

Key Points

• The Cheesecake Factory has declared a quarterly dividend of $0.27 per share, which will be paid on August 26th to shareholders of record as of August 12th, resulting in an annualized dividend yield of 1.71%.
• The company is expected to earn $4.10 per share next year, allowing it to maintain a healthy payout ratio of approximately 26.3%, indicating its dividend is well-supported by earnings.
• Cheesecake Factory's stock has experienced a 4.1% decline, with a current market cap of $3.13 billion and a price range over the past year between $33.50 and $69.70.

The Cheesecake Factory Incorporated (NASDAQ:CAKE - Get Free Report) announced a quarterly dividend on Wednesday, July 23rd, RTT News reports. Investors of record on Tuesday, August 12th will be paid a dividend of 0.27 per share by the restaurant operator on Tuesday, August 26th. This represents a c) annualized dividend and a yield of 1.7%. The ex-dividend date of this dividend is Tuesday, August 12th.

Cheesecake Factory has a dividend payout ratio of 26.5% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Cheesecake Factory to earn $4.10 per share next year, which means the company should continue to be able to cover its $1.08 annual dividend with an expected future payout ratio of 26.3%.

Cheesecake Factory Price Performance

CAKE traded down $1.53 on Friday, hitting $62.38. 1,941,239 shares of the company's stock traded hands, compared to its average volume of 1,545,028. The company's 50 day simple moving average is $61.06 and its 200-day simple moving average is $54.28. The firm has a market cap of $3.09 billion, a price-to-earnings ratio of 19.19, a P/E/G ratio of 1.61 and a beta of 1.17. Cheesecake Factory has a one year low of $33.50 and a one year high of $69.70. The company has a current ratio of 0.53, a quick ratio of 0.43 and a debt-to-equity ratio of 1.85.

Cheesecake Factory (NASDAQ:CAKE - Get Free Report) last issued its earnings results on Tuesday, July 29th. The restaurant operator reported $1.16 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.06 by $0.10. The company had revenue of $955.83 million for the quarter, compared to the consensus estimate of $945.82 million. Cheesecake Factory had a return on equity of 46.15% and a net margin of 4.33%. The firm's quarterly revenue was up 5.7% on a year-over-year basis. During the same quarter last year, the company earned $1.09 EPS. As a group, research analysts anticipate that Cheesecake Factory will post 3.71 EPS for the current year.

Analysts Set New Price Targets

Several research firms have weighed in on CAKE. Morgan Stanley raised their price target on Cheesecake Factory from $45.00 to $47.00 and gave the company an "underweight" rating in a report on Thursday. Bank of America boosted their target price on Cheesecake Factory from $61.00 to $67.00 and gave the company a "neutral" rating in a research report on Friday, July 18th. Argus set a $60.00 target price on Cheesecake Factory in a research report on Wednesday, May 14th. Barclays boosted their target price on Cheesecake Factory from $57.00 to $62.00 and gave the company an "underweight" rating in a research report on Wednesday. Finally, Citigroup cut their target price on Cheesecake Factory from $67.00 to $62.00 and set a "buy" rating on the stock in a research report on Tuesday, April 15th. Four investment analysts have rated the stock with a sell rating, six have given a hold rating and seven have assigned a buy rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Hold" and an average target price of $61.06.

About Cheesecake Factory

The Cheesecake Factory Incorporated operates and licenses restaurants in the United States and Canada. The company operates bakeries that produce cheesecakes and other baked products for its restaurants, international licensees, third-party bakery customers, external foodservice operators, retailers, and distributors.