Cheesecake Factory (NASDAQ:CAKE) Shares Gap Up on Better-Than-Expected Earnings

Shares of The Cheesecake Factory Incorporated (NASDAQ:CAKE) gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $33.97, but opened at $36.50. Cheesecake Factory shares last traded at $37.28, with a volume of 390,303 shares.

The restaurant operator reported $0.73 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.63 by $0.10. The company had revenue of $891.22 million during the quarter, compared to the consensus estimate of $890.49 million. Cheesecake Factory had a return on equity of 41.66% and a net margin of 2.95%. The company’s revenue for the quarter was up 2.9% compared to the same quarter last year. During the same period in the prior year, the company earned $0.61 earnings per share.

Cheesecake Factory Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, March 19th. Shareholders of record on Wednesday, March 6th were paid a $0.27 dividend. The ex-dividend date was Tuesday, March 5th. This represents a $1.08 dividend on an annualized basis and a yield of 2.89%. Cheesecake Factory’s dividend payout ratio is 52.43%.

Wall Street Analyst Weigh In

CAKE has been the subject of a number of analyst reports. Stephens restated an “overweight” rating and issued a $44.00 price target on shares of Cheesecake Factory in a research note on Thursday. JPMorgan Chase & Co. downgraded Cheesecake Factory from a “neutral” rating to an “underweight” rating and set a $33.00 price target for the company. in a research note on Tuesday, January 23rd. Wedbush raised their price target on Cheesecake Factory from $40.00 to $45.00 and gave the company an “outperform” rating in a research note on Thursday. Raymond James raised Cheesecake Factory from a “market perform” rating to an “outperform” rating and set a $42.00 price objective for the company in a research report on Thursday. Finally, Robert W. Baird raised their price objective on Cheesecake Factory from $32.00 to $37.00 and gave the company a “neutral” rating in a research report on Thursday. Three equities research analysts have rated the stock with a sell rating, eight have issued a hold rating and four have given a buy rating to the company. According to MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $35.83.

Hedge Funds Weigh In On Cheesecake Factory

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Norges Bank bought a new position in shares of Cheesecake Factory in the 4th quarter valued at $11,729,000. Sapient Capital LLC bought a new position in shares of Cheesecake Factory in the 4th quarter valued at $6,838,000. Envestnet Asset Management Inc. increased its stake in shares of Cheesecake Factory by 46.9% in the 3rd quarter. Envestnet Asset Management Inc. now owns 411,017 shares of the restaurant operator’s stock valued at $12,454,000 after purchasing an additional 131,295 shares during the last quarter. IPG Investment Advisors LLC increased its stake in shares of Cheesecake Factory by 104.7% in the 4th quarter. IPG Investment Advisors LLC now owns 151,695 shares of the restaurant operator’s stock valued at $5,311,000 after purchasing an additional 77,575 shares during the last quarter. Finally, Campbell & CO Investment Adviser LLC bought a new position in shares of Cheesecake Factory in the 4th quarter valued at $2,532,000. 94.48% of the stock is owned by institutional investors and hedge funds.

Cheesecake Factory Stock Performance

The company has a 50 day moving average price of $35.14 and a 200-day moving average price of $33.97. The company has a current ratio of 0.46, a quick ratio of 0.37 and a debt-to-equity ratio of 1.48. The company has a market cap of $1.91 billion, a P/E ratio of 17.95, a price-to-earnings-growth ratio of 1.12 and a beta of 1.48.

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.