The Cheesecake Factory Incorporated (CAKE) Raised to “Hold” at Zacks Investment Research
The Cheesecake Factory Incorporated (NASDAQ:CAKE) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report issued on Thursday.
According to Zacks, “Cheesecake Factory’s third-quarter fiscal 2017 adjusted earnings per share of 56 lagged the Zacks Consensus Estimate by 6.7% and declined 20% year over year. Sales of $555.4 million also fell short of the consensus mark by 1.3% and decreased 0.8% year over year. Notably, a lowered fiscal 2017 outlook and reversal in positive comps trend due to prevailing challenging restaurant environment are concerning. Meanwhile, higher labor and pre-openings costs coupled with expenses related to sales initiatives are likely to pressurize profits in the near term. Cheesecake Factory’s shares have underperformed the industry in the past year. Even so, 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.”
Other equities analysts also recently issued reports about the stock. Robert W. Baird set a $49.00 price target on shares of The Cheesecake Factory and gave the company a “hold” rating in a research note on Thursday, August 3rd. Instinet began coverage on shares of The Cheesecake Factory in a research note on Wednesday, July 12th. They issued a “neutral” rating and a $50.00 price target on the stock. Barclays PLC restated an “equal weight” rating and issued a $48.00 price target (down from $53.00) on shares of The Cheesecake Factory in a research note on Thursday, August 3rd. Canaccord Genuity restated a “hold” rating on shares of The Cheesecake Factory in a research note on Friday, August 4th. Finally, Maxim Group decreased their price target on shares of The Cheesecake Factory from $57.00 to $54.00 and set a “buy” rating on the stock in a research note on Thursday. Two investment analysts have rated the stock with a sell rating, fourteen have assigned a hold rating and four have given a buy rating to the company’s stock. The stock has a consensus rating of “Hold” and a consensus price target of $50.47.
The Cheesecake Factory (NASDAQ:CAKE) last released its quarterly earnings data on Wednesday, November 1st. The restaurant operator reported $0.56 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.60 by ($0.04). The Cheesecake Factory had a net margin of 6.10% and a return on equity of 22.92%. The company had revenue of $555.40 million during the quarter, compared to analyst estimates of $566.09 million. During the same quarter in the prior year, the firm earned $0.70 earnings per share. The Cheesecake Factory’s revenue for the quarter was down .8% on a year-over-year basis.
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A number of hedge funds and other institutional investors have recently modified their holdings of CAKE. USA Financial Portformulas Corp bought a new position in The Cheesecake Factory during the 3rd quarter worth approximately $599,000. Gamco Investors INC. ET AL raised its holdings in The Cheesecake Factory by 5.7% during the 3rd quarter. Gamco Investors INC. ET AL now owns 673,853 shares of the restaurant operator’s stock worth $28,383,000 after purchasing an additional 36,250 shares during the last quarter. Legato Capital Management LLC raised its holdings in The Cheesecake Factory by 36.9% during the 3rd quarter. Legato Capital Management LLC now owns 21,634 shares of the restaurant operator’s stock worth $912,000 after purchasing an additional 5,836 shares during the last quarter. Dumont & Blake Investment Advisors LLC raised its holdings in The Cheesecake Factory by 47.3% during the 3rd quarter. Dumont & Blake Investment Advisors LLC now owns 16,280 shares of the restaurant operator’s stock worth $686,000 after purchasing an additional 5,225 shares during the last quarter. Finally, Palisade Capital Management LLC NJ bought a new position in The Cheesecake Factory during the 3rd quarter worth approximately $6,104,000. Institutional investors and hedge funds own 97.52% of the company’s stock.
About The 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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