Cheesecake Factory (NASDAQ:CAKE) Stock: Insider Alexander Cappello Sells 425 Shares

The Cheesecake Factory Incorporated (NASDAQ:CAKE) Director Alexander Cappello sold 425 shares of the stock in a transaction dated Thursday, October 29th. The shares were sold at an average price of $113.71, for a total value of $48,326.75. Following the completion of the sale, the director directly owned 3,428 shares in the company, valued at $389,797.88. This represents a 11.03% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website.

Cheesecake Factory Stock Performance

Shares of Cheesecake Factory stock opened at $112.64 on Friday. The Cheesecake Factory Incorporated has a one year low of $43.07 and a one year high of $118.63. The company has a market cap of $5.60 billion, a PE ratio of 26.69, a P/E/G ratio of 1.62 and a beta of 1.04. The company has a debt-to-equity ratio of 1.08, a quick ratio of 0.52 and a current ratio of 0.59. The business has a 50-day simple moving average of $108.02 and a 200-day simple moving average of $79.68.

Cheesecake Factory (NASDAQ:CAKE) last released its earnings results on Tuesday, October 27th. The restaurant operator reported $1.02 earnings per share for the quarter, topping analysts’ consensus estimates of $0.96 by $0.06. The firm had revenue of $1.03 billion for the quarter, compared to analyst estimates of $1.01 billion. Cheesecake Factory had a net margin of 5.20% and a return on equity of 46.95%. The business’s quarterly revenue was up 13.9% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.66 earnings per share. On average, equities research analysts forecast that The Cheesecake Factory Incorporated will post 4.68 EPS for the current fiscal year.

Cheesecake Factory Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, November 24th. Shareholders of record on Tuesday, November 10th will be issued a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a yield of 1.1%. The ex-dividend date is Tuesday, November 10th. Cheesecake Factory’s payout ratio is 28.44%.

Hedge Funds Weigh In On Cheesecake Factory

A number of hedge funds have recently modified their holdings of CAKE. Public Employees Retirement System of Ohio purchased a new position in Cheesecake Factory during the 2nd quarter worth $2,367,000. Oppenheimer Asset Management Inc. acquired a new position in Cheesecake Factory in the second quarter valued at $2,606,000. Corient Private Wealth LP raised its holdings in shares of Cheesecake Factory by 269.9% in the second quarter. Corient Private Wealth LP now owns 100,951 shares of the restaurant operator’s stock valued at $8,030,000 after buying an additional 73,659 shares during the last quarter. The Manufacturers Life Insurance Company purchased a new stake in shares of Cheesecake Factory in the second quarter valued at about $1,731,000. Finally, Headlands Technologies LLC raised its holdings in shares of Cheesecake Factory by 29.7% in the second quarter. Headlands Technologies LLC now owns 42,640 shares of the restaurant operator’s stock valued at $3,392,000 after buying an additional 9,765 shares during the last quarter. 94.48% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on CAKE shares. JPMorgan Chase & Co. lifted their price objective on shares of Cheesecake Factory from $92.00 to $105.00 and gave the stock a “neutral” rating in a research report on Wednesday, August 26th. Stephens reaffirmed an “equal weight” rating and set a $100.00 price target on shares of Cheesecake Factory in a report on Wednesday. Robert W. Baird boosted their target price on Cheesecake Factory from $105.00 to $120.00 and gave the stock a “neutral” rating in a research note on Thursday, October 22nd. Mizuho boosted their price objective on shares of Cheesecake Factory from $93.00 to $110.00 and gave the stock a “neutral” rating in a research report on Friday, October 23rd. Finally, Zacks Research lowered shares of Cheesecake Factory from a “strong-buy” rating to a “hold” rating in a research note on Wednesday. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, twelve have issued a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $95.47.

Key Cheesecake Factory News

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

• Positive Sentiment: Third-quarter results showed solid momentum: total revenue exceeded $1.033 billion, and flagship restaurant guest traffic rose 9.5%. The company also surpassed consensus estimates for both revenue and earnings, suggesting continued customer demand. Cheesecake Factory: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Freedom Capital upgraded CAKE from “hold” to “strong-buy,” providing a bullish counterpoint to the day’s more cautious research. Freedom Capital analyst action
• Positive Sentiment: The company announced an opening date for a new location at West County Mall, indicating continued unit expansion, although the financial impact is likely limited in the near term. Cheesecake Factory sets opening date
• Neutral Sentiment: Barack Obama’s repeated Cheesecake Factory references have generated substantial media attention and may increase brand visibility, but the political dispute does not appear to change the company’s earnings outlook or operations. Seth Meyers praises Obama
• Neutral Sentiment: Stephens reaffirmed an “equal weight” rating, signaling that the firm sees limited near-term outperformance despite CAKE’s strong operating results. Stephens reaffirms Equal Weight rating
• Negative Sentiment: Zacks Research downgraded CAKE from “strong-buy” to “hold.” The stock also crossed below its 50-day moving average following the downgrade, reinforcing near-term technical and valuation concerns. Cheesecake Factory stock crosses below 50-day moving average

Cheesecake Factory Company Profile

The Cheesecake Factory Incorporated is a restaurant company best known for The Cheesecake Factory, a full-service casual dining brand offering an extensive menu of American and international-inspired dishes, along with a broad selection of cheesecakes and other desserts. The company also operates North Italia, an Italian restaurant concept, and owns Fox Restaurant Concepts, which develops and operates additional restaurant brands, including Flower Child and Culinary Dropout.

The company was founded by David Overton, who opened the first Cheesecake Factory restaurant in Beverly Hills, California, in 1978 after his parents began a cheesecake business.