Cheesecake Factory (NASDAQ:CAKE) Director Sells 100 Shares

by · The Cerbat Gem

The Cheesecake Factory Incorporated (NASDAQ:CAKE – Get Free Report) Director Alexander Cappello sold 100 shares of the company’s stock in a transaction on Friday, July 31st. The stock was sold at an average price of $103.04, for a total value of $10,304.00. Following the sale, the director owned 3,976 shares of the company’s stock, valued at approximately $409,687.04. This represents a 2.45% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink.

Cheesecake Factory Stock Up 3.4%

NASDAQ CAKE traded up $3.47 during midday trading on Monday, hitting $104.89. 1,640,389 shares of the company traded hands, compared to its average volume of 1,369,998. The company has a debt-to-equity ratio of 1.22, a current ratio of 0.59 and a quick ratio of 0.53. The company has a market cap of $5.21 billion, a PE ratio of 28.43, a price-to-earnings-growth ratio of 1.83 and a beta of 1.01. The company’s 50-day simple moving average is $77.60 and its 200-day simple moving average is $66.20. The Cheesecake Factory Incorporated has a 52 week low of $43.07 and a 52 week high of $105.18.

Cheesecake Factory (NASDAQ:CAKE – Get Free Report) last released its quarterly earnings results on Tuesday, July 28th. The restaurant operator reported $1.44 EPS for the quarter, topping the consensus estimate of $1.18 by $0.26. The firm had revenue of $1.03 billion during the quarter, compared to analyst estimates of $999.54 million. Cheesecake Factory had a return on equity of 45.94% and a net margin of 4.61%.The business’s revenue for the quarter was up 7.7% compared to the same quarter last year. During the same period in the previous year, the company posted $1.16 EPS. As a group, equities research analysts forecast that The Cheesecake Factory Incorporated will post 4.43 earnings per share for the current year.

Cheesecake Factory Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, August 25th. Shareholders of record on Tuesday, August 11th will be issued a $0.30 dividend. The ex-dividend date is Tuesday, August 11th. This represents a $1.20 dividend on an annualized basis and a yield of 1.1%. Cheesecake Factory’s payout ratio is currently 32.52%.

Key Headlines Impacting Cheesecake Factory

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

  • Positive Sentiment: Cheesecake Factory delivered a quarterly earnings beat, with earnings per share of $1.44 versus the $1.18 analyst consensus and revenue of $1.03 billion versus estimates of approximately $999.5 million. Revenue increased 7.7% year over year, supporting investor confidence in continued sales and profit growth. A Sweet Beat and a Wearables Rally Came With Reasons to Pause
  • Positive Sentiment: Analysts and growth-focused coverage continue to point to CAKE’s favorable growth characteristics, including stronger operating performance and the potential for earnings to outperform expectations. The company is expected to earn approximately $4.43 per share for the current year. Is Cheesecake Factory a Solid Growth Stock?
  • Neutral Sentiment: Recent articles highlighting the chain’s broad menu, pasta offerings and popularity among diners may support brand visibility and customer interest, but they provide no new financial guidance or material catalyst for the stock. The Cheesecake Factory Menu Is So Big It Breaks Every Restaurant Rule
  • Negative Sentiment: The earnings-related rally could face resistance because some of the reported improvement may reflect non-recurring factors, while margin pressures remain a concern. With CAKE’s valuation elevated after its advance, investors may require continued execution to justify further gains. A Sweet Beat and a Wearables Rally Came With Reasons to Pause
  • Negative Sentiment: Executive Vice President Scarlett May sold 7,978 shares for approximately $819,000, reducing her holdings by 30.4%. A separate filing reported Matthew Eliot Clark sold 68,900 shares. Insider sales do not necessarily indicate deteriorating fundamentals, but they may weigh on sentiment following the stock’s sharp rise. SEC Insider Trading Filing

Institutional Trading of Cheesecake Factory

Large investors have recently bought and sold shares of the stock. Salomon & Ludwin LLC increased its stake in Cheesecake Factory by 226.5% during the 4th quarter. Salomon & Ludwin LLC now owns 604 shares of the restaurant operator’s stock valued at $33,000 after purchasing an additional 419 shares in the last quarter. Global Retirement Partners LLC lifted its stake in shares of Cheesecake Factory by 661.7% during the fourth quarter. Global Retirement Partners LLC now owns 716 shares of the restaurant operator’s stock worth $36,000 after buying an additional 622 shares during the period. NFSG Corp lifted its stake in shares of Cheesecake Factory by 115.8% during the first quarter. NFSG Corp now owns 682 shares of the restaurant operator’s stock worth $37,000 after buying an additional 366 shares during the period. Root Financial Partners LLC grew its holdings in shares of Cheesecake Factory by 973.2% during the fourth 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 purchased a new stake in shares of Cheesecake Factory during the fourth quarter valued at $50,000. Hedge funds and other institutional investors own 94.48% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on the stock. Robert W. Baird raised their price target on shares of Cheesecake Factory from $65.00 to $90.00 and gave the company a “neutral” rating in a report on Wednesday, July 29th. Deutsche Bank Aktiengesellschaft reissued a “hold” rating and set a $68.00 target price on shares of Cheesecake Factory in a research report on Thursday, April 30th. Argus raised their target price on shares of Cheesecake Factory from $72.00 to $110.00 and gave the company a “buy” rating in a research note on Thursday. Morgan Stanley raised shares of Cheesecake Factory from an “underweight” rating to an “equal weight” rating and lifted their price target for the stock from $50.00 to $80.00 in a report on Wednesday, July 29th. Finally, Citigroup upped their price target on Cheesecake Factory from $76.00 to $90.00 and gave the stock a “buy” rating in a research report on Friday, July 10th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, eleven have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, Cheesecake Factory presently has an average rating of “Hold” and a consensus target price of $79.81.

Read Our Latest Stock Report on Cheesecake Factory

About Cheesecake Factory

(Get Free Report)

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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