Zacks Investment Research downgraded shares of Cheesecake Factory (NASDAQ:CAKE) from a buy rating to a hold rating in a research note issued to investors on Wednesday morning.

According to Zacks, “Cheesecake Factory’s shares have outperformed the industry over the past three months. Earnings estimates for 2018 has also gone up over the past 60 days, reflecting analysts’ optimism. The company’s differentiated menu, operational distinction and unique ambiance appeal to customers. Further, the company’s aggressive expansion initiatives also bode well and should drive growth. However, a lowered fiscal 2017 outlook due to prevailing challenging restaurant environment calls for caution. Moving ahead, higher labor and pre-openings costs coupled with expenses related to sales initiatives are likely to continue to hurt margins. In addition, underperformance by Grand Lux Cafe raises caution.”

Several other analysts have also recently issued reports on the stock. Wells Fargo & Co decreased their target price on shares of Cheesecake Factory from $45.00 to $41.00 and set a market perform rating on the stock in a research report on Tuesday, February 6th. BidaskClub upgraded shares of Cheesecake Factory from a sell rating to a hold rating in a report on Friday, January 26th. Barclays upped their price target on shares of Cheesecake Factory from $47.00 to $48.00 and gave the company an equal weight rating in a report on Wednesday, January 24th. TheStreet upgraded shares of Cheesecake Factory from a c+ rating to a b rating in a report on Friday, January 5th. Finally, Canaccord Genuity reiterated a hold rating and set a $54.00 price target on shares of Cheesecake Factory in a report on Monday, January 8th. One equities research analyst has rated the stock with a sell rating, fifteen have given a hold rating and four have assigned a buy rating to the company. The stock currently has an average rating of Hold and an average price target of $49.00.

Shares of Cheesecake Factory (NASDAQ CAKE) opened at $45.14 on Wednesday. The company has a current ratio of 0.51, a quick ratio of 0.37 and a debt-to-equity ratio of 0.05. The stock has a market cap of $2,066.73, a PE ratio of 16.66, a PEG ratio of 1.14 and a beta of 0.33. Cheesecake Factory has a 1 year low of $38.34 and a 1 year high of $67.14.

In other Cheesecake Factory news, VP Debby R. Zurzolo sold 2,306 shares of the company’s stock in a transaction dated Wednesday, November 15th. The shares were sold at an average price of $44.75, for a total value of $103,193.50. The sale was disclosed in a filing with the SEC, which is available through this link. 8.40% of the stock is owned by corporate insiders.

A number of hedge funds have recently modified their holdings of CAKE. Tiedemann Wealth Management LLC grew its stake in Cheesecake Factory by 22.9% in the 3rd quarter. Tiedemann Wealth Management LLC now owns 17,347 shares of the restaurant operator’s stock worth $134,000 after acquiring an additional 3,237 shares in the last quarter. Perennial Advisors LLC grew its stake in Cheesecake Factory by 123.1% in the 4th quarter. Perennial Advisors LLC now owns 2,900 shares of the restaurant operator’s stock worth $140,000 after acquiring an additional 1,600 shares in the last quarter. Raymond James Financial Services Advisors Inc. bought a new position in Cheesecake Factory in the 2nd quarter worth about $205,000. M&T Bank Corp grew its stake in Cheesecake Factory by 23.4% in the 2nd quarter. M&T Bank Corp now owns 4,849 shares of the restaurant operator’s stock worth $244,000 after acquiring an additional 919 shares in the last quarter. Finally, Atria Investments LLC bought a new position in Cheesecake Factory in the 4th quarter worth about $255,000. Institutional investors and hedge funds own 98.55% of the company’s stock.

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Cheesecake Factory Company Profile

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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Analyst Recommendations for Cheesecake Factory (NASDAQ:CAKE)

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