NEW YORK (TheStreet) -- Shares of Cheesecake Factory (CAKE) - Get Report are gaining 4.90% to $52.20 on heavy trading volume late Thursday afternoon after reporting better-than-expected 2016 second-quarter earnings and hiking its quarterly dividend. 

After yesterday's market close, the restaurant operator reported adjusted earnings of 78 cents per share for the most recent period, beating analysts' estimates of 71 cents per share. 

But revenue of $559 million missed analysts' projections of $562 million. 

The Calabasas Hills, CA-based company boosted its quarterly divided by 20% to 24 cents per share. The dividend is payable on August 23 to shareholders of record as of August 10.

Cheesecake Factory also increased its share repurchase program by 7.5 million shares to 56 million shares.

About 2.53 million shares of Cheesecake Factory have been traded so far today, well above the company's average trading volume of roughly 787,178 shares per day.

Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of A-.

Cheesecake Factory's strengths such as its impressive record of earnings per share growth, revenue growth, reasonable valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

You can view the full analysis from the report here: CAKE

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author. 

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