ValuEngine Downgrades Cheesecake Factory (CAKE) to Hold

Cheesecake Factory (NASDAQ:CAKE) was downgraded by equities research analysts at ValuEngine from a “buy” rating to a “hold” rating in a research note issued on Thursday.

Several other brokerages also recently commented on CAKE. BidaskClub raised Cheesecake Factory from a “buy” rating to a “strong-buy” rating in a report on Tuesday, July 24th. Bank of America lifted their target price on Cheesecake Factory from $55.00 to $60.00 and gave the stock a “neutral” rating in a report on Tuesday, July 24th. Robert W. Baird lifted their target price on Cheesecake Factory from $55.00 to $58.00 and gave the stock a “neutral” rating in a report on Wednesday, July 25th. Jefferies Financial Group reaffirmed a “hold” rating and set a $52.00 target price on shares of Cheesecake Factory in a report on Friday, July 13th. Finally, Barclays lifted their target price on Cheesecake Factory from $52.00 to $56.00 and gave the stock a “$58.55” rating in a report on Wednesday, July 18th. Seventeen equities research analysts have rated the stock with a hold rating and one has given a buy rating to the company. The company presently has a consensus rating of “Hold” and a consensus target price of $52.93.

Shares of CAKE stock opened at $49.17 on Thursday. The firm has a market cap of $2.22 billion, a P/E ratio of 20.48, a PEG ratio of 1.38 and a beta of 0.33. Cheesecake Factory has a twelve month low of $41.75 and a twelve month high of $60.19. The company has a debt-to-equity ratio of 0.03, a quick ratio of 0.38 and a current ratio of 0.02.

Cheesecake Factory (NASDAQ:CAKE) last issued its quarterly earnings data on Tuesday, October 30th. The restaurant operator reported $0.62 earnings per share for the quarter, topping analysts’ consensus estimates of $0.58 by $0.04. The business had revenue of $580.88 million for the quarter, compared to analyst estimates of $585.44 million. Cheesecake Factory had a return on equity of 18.02% and a net margin of 6.02%. Cheesecake Factory’s quarterly revenue was up 4.6% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.56 EPS. Equities research analysts expect that Cheesecake Factory will post 2.44 EPS for the current fiscal year.

In other news, insider Cheryl Slomann sold 1,005 shares of the business’s stock in a transaction dated Monday, August 27th. The stock was sold at an average price of $52.94, for a total value of $53,204.70. Following the transaction, the insider now directly owns 12,106 shares of the company’s stock, valued at approximately $640,891.64. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Edie A. Ames acquired 500 shares of the company’s stock in a transaction dated Wednesday, August 22nd. The stock was acquired at an average cost of $52.83 per share, for a total transaction of $26,415.00. Following the completion of the purchase, the director now directly owns 1,430 shares in the company, valued at $75,546.90. The disclosure for this purchase can be found here. 8.80% of the stock is owned by insiders.

Several large investors have recently made changes to their positions in CAKE. Schroder Investment Management Group lifted its stake in shares of Cheesecake Factory by 96.0% in the 2nd quarter. Schroder Investment Management Group now owns 1,237,553 shares of the restaurant operator’s stock valued at $79,973,000 after purchasing an additional 606,024 shares during the period. BlackRock Inc. lifted its stake in shares of Cheesecake Factory by 8.3% in the 2nd quarter. BlackRock Inc. now owns 5,177,817 shares of the restaurant operator’s stock valued at $285,089,000 after purchasing an additional 398,351 shares during the period. Marshall Wace LLP acquired a new position in shares of Cheesecake Factory in the 2nd quarter valued at about $6,250,000. Voya Investment Management LLC lifted its stake in shares of Cheesecake Factory by 15.8% in the 2nd quarter. Voya Investment Management LLC now owns 784,960 shares of the restaurant operator’s stock valued at $43,220,000 after purchasing an additional 107,303 shares during the period. Finally, Phocas Financial Corp. acquired a new position in shares of Cheesecake Factory in the 2nd quarter valued at about $5,634,000.

Cheesecake Factory Company Profile

The Cheesecake Factory Incorporated operates restaurants in the United States. The company produces cheesecakes and other baked products for own restaurants and international licensees, as well as external foodservice operators, retailers, and distributors. As of August 21, 2018, it operated 215 company-owned restaurants, including 199 restaurants under The Cheesecake Factory brand; 14 restaurants under the Grand Lux Cafe brand; and 2 restaurants under the RockSugar Southeast Asian Kitchen brand, as well as 21 The Cheesecake Factory branded restaurants under licensing agreements internationally.

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Analyst Recommendations for Cheesecake Factory (NASDAQ:CAKE)

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