Cheesecake Factory (NASDAQ:CAKE) Sets New 52-Week High Following Strong Earnings

The Cheesecake Factory Incorporated (NASDAQ:CAKE) shares hit a new 52-week high on Tuesday following a stronger than expected earnings report. The stock traded as high as $43.81 and last traded at $43.34, with a volume of 175791 shares trading hands. The stock had previously closed at $43.25.

The restaurant operator reported $0.58 earnings per share for the quarter, topping the consensus estimate of $0.47 by $0.11. Cheesecake Factory had a net margin of 3.32% and a return on equity of 43.62%. The company had revenue of $865.50 million during the quarter, compared to the consensus estimate of $866.13 million. During the same quarter in the prior year, the firm posted $0.39 EPS. Cheesecake Factory’s quarterly revenue was up 4.3% compared to the same quarter last year.

Analysts Set New Price Targets

Several analysts recently issued reports on CAKE shares. Citigroup lifted their target price on Cheesecake Factory from $46.00 to $51.00 and gave the company a “buy” rating in a research note on Friday, October 4th. Barclays lifted their price objective on shares of Cheesecake Factory from $38.00 to $44.00 and gave the company an “underweight” rating in a research report on Wednesday. Bank of America upped their target price on shares of Cheesecake Factory from $47.00 to $49.00 and gave the stock a “neutral” rating in a research report on Wednesday. Wedbush lifted their price target on shares of Cheesecake Factory from $48.00 to $52.00 and gave the company an “outperform” rating in a report on Wednesday. Finally, JPMorgan Chase & Co. decreased their price target on shares of Cheesecake Factory from $40.00 to $38.00 and set an “underweight” rating on the stock in a research note on Tuesday, August 6th. Three analysts have rated the stock with a sell rating, six have assigned a hold rating and five have given a buy rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $44.17.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in CAKE. Arizona State Retirement System lifted its stake in shares of Cheesecake Factory by 2.5% in the 2nd quarter. Arizona State Retirement System now owns 13,593 shares of the restaurant operator’s stock valued at $534,000 after purchasing an additional 337 shares during the last quarter. Louisiana State Employees Retirement System raised its holdings in Cheesecake Factory by 2.2% during the 2nd quarter. Louisiana State Employees Retirement System now owns 23,600 shares of the restaurant operator’s stock valued at $927,000 after buying an additional 500 shares during the period. Harbor Capital Advisors Inc. lifted its position in Cheesecake Factory by 2.4% in the third quarter. Harbor Capital Advisors Inc. now owns 23,110 shares of the restaurant operator’s stock worth $937,000 after buying an additional 532 shares during the last quarter. ProShare Advisors LLC boosted its stake in Cheesecake Factory by 5.9% during the first quarter. ProShare Advisors LLC now owns 9,608 shares of the restaurant operator’s stock worth $347,000 after buying an additional 537 shares during the period. Finally, Texas Permanent School Fund Corp increased its position in Cheesecake Factory by 1.4% during the first quarter. Texas Permanent School Fund Corp now owns 40,881 shares of the restaurant operator’s stock valued at $1,478,000 after acquiring an additional 547 shares during the last quarter. Hedge funds and other institutional investors own 94.48% of the company’s stock.

Cheesecake Factory Trading Up 8.8 %

The company’s 50 day moving average price is $40.01 and its two-hundred day moving average price is $38.36. The firm has a market cap of $2.38 billion, a PE ratio of 19.51, a P/E/G ratio of 1.13 and a beta of 1.49. The company has a quick ratio of 0.32, a current ratio of 0.43 and a debt-to-equity ratio of 1.26.

Cheesecake Factory Company Profile

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.