Cheesecake Factory (NASDAQ:CAKE) Lifted to Hold at Zacks Investment Research
Zacks Investment Research upgraded shares of Cheesecake Factory (NASDAQ:CAKE) from a sell rating to a hold rating in a report issued on Thursday, January 4th.
According to Zacks, “Various initiatives to boost sales like menu innovation, roll-out of an improved server training program, launch of mobile payment app and focus on delivery bode well for Cheesecake Factory. However, a lowered fiscal 2017 outlook and reversal in positive comps trend due to prevailing challenging restaurant environment calls for caution. Meanwhile, the company’s profits have been under pressure owing to a rise in rates of wages. Moreover, as the company strives to expand its presence worldwide, pre-opening costs of outlets along with expenses related to sales initiatives will continue to hurt margins. Further, continued sluggish performance by Grand Lux Café raises concern. Shares have underperformed the industry over the past year. Earnings estimates for 2018 has gone down in the past 60 days.”
Several other brokerages have also recently issued reports on CAKE. Morgan Stanley reduced their price target on shares of Cheesecake Factory from $48.00 to $44.00 and set an equal weight rating on the stock in a research report on Thursday, November 2nd. Nomura reduced their price target on shares of Cheesecake Factory from $43.00 to $40.00 and set a neutral rating on the stock in a research report on Thursday, November 2nd. Canaccord Genuity cut their price objective on shares of Cheesecake Factory from $50.00 to $48.00 and set a hold rating on the stock in a report on Thursday, November 2nd. Maxim Group cut their price objective on shares of Cheesecake Factory from $57.00 to $54.00 and set a buy rating on the stock in a report on Thursday, November 2nd. Finally, Barclays cut their price objective on shares of Cheesecake Factory from $46.00 to $43.00 and set an equal weight rating on the stock in a report on Thursday, November 2nd. One equities research analyst has rated the stock with a sell rating, fifteen have issued a hold rating and four have given a buy rating to the stock. The company currently has an average rating of Hold and an average price target of $48.88.
Cheesecake Factory (NASDAQ:CAKE) last announced its quarterly earnings results on Wednesday, November 1st. The restaurant operator reported $0.56 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.60 by ($0.04). Cheesecake Factory had a net margin of 5.76% and a return on equity of 21.65%. The company had revenue of $555.40 million for the quarter, compared to analysts’ expectations of $566.09 million. During the same quarter in the prior year, the firm earned $0.70 EPS. Cheesecake Factory’s quarterly revenue was down .8% compared to the same quarter last year. research analysts forecast that Cheesecake Factory will post 2.6 EPS for the current fiscal year.
In other news, Director Herbert Simon purchased 25,000 shares of the business’s stock in a transaction dated Monday, November 6th. The shares were purchased at an average price of $43.50 per share, for a total transaction of $1,087,500.00. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, VP Debby R. Zurzolo sold 2,306 shares of the stock in a transaction that occurred on Wednesday, November 15th. The shares were sold at an average price of $44.75, for a total transaction of $103,193.50. The disclosure for this sale can be found here. Corporate insiders own 8.40% of the company’s stock.
Several large investors have recently bought and sold shares of CAKE. Koch Industries Inc. bought a new position in Cheesecake Factory during the second quarter valued at approximately $353,000. Public Employees Retirement System of Ohio lifted its position in Cheesecake Factory by 8.7% during the third quarter. Public Employees Retirement System of Ohio now owns 74,481 shares of the restaurant operator’s stock valued at $3,137,000 after purchasing an additional 5,938 shares during the period. Sciencast Management LP bought a new position in Cheesecake Factory during the second quarter valued at approximately $357,000. Bridgewater Associates LP bought a new position in Cheesecake Factory during the second quarter valued at approximately $606,000. Finally, Macquarie Group Ltd. lifted its position in Cheesecake Factory by 18.4% during the second quarter. Macquarie Group Ltd. now owns 1,351,873 shares of the restaurant operator’s stock valued at $67,999,000 after purchasing an additional 209,711 shares during the period. Hedge funds and other institutional investors own 99.27% of the company’s stock.
About Cheesecake Factory
The Cheesecake Factory Incorporated is engaged in the restaurant and bakery business. As of March 2, 2017, the Company operated 208 Company-owned restaurants: 194 under The Cheesecake Factory mark, 13 under the Grand Lux Cafe mark and one under the Rock Sugar Pan Asian Kitchen mark. The Company’s segments include The Cheesecake Factory restaurants, and other.
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