NEW YORK (AP) â¿¿ The Cheesecake Factory Inc.'s stock slid more than 5 percent on Monday as an analyst cut her rating on the shares as consumers again pull back on dining out.
THE SPARK: As they worried about the economy and high unemployment during the recession, consumers ate out less frequently. As economic conditions have improved, they have been patronizing restaurants again.
But Sharon Zackfia of William Blair & Co. said in a client note on Monday that her checks on restaurant operators showed uneven performances in May following weakness in April.
Not helping matters are government reports showing that U.S. employers added only 69,000 jobs in May, the fewest in a year, and the unemployment rate rose a percentage point to to 8.2 percent.THE ANALYSIS: Zackfia reduced her rating on The Cheesecake Factory to "Market Perform" from "Outperform." She believes the company can still meet its own forecast for full-year earnings of $1.83 to $1.91 per share. But she said she is worried the results will come in below her estimate for $1.88 per share. SHARE ACTION: Shares of The Cheesecake Factory fell $1.42, or 4.5 percent, to $29.93 by mid-afternoon. The stock has traded between $23.65 and $34.07 over the past year.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV