NEW YORK (TheStreet) -- Cheesecake Factory (CAKE) - Get Cheesecake Factory Incorporated Report shares are down 7.16% to $49.25 in trading on Wednesday following the release of the restaurant chain's fourth quarter earnings results after the closing bell today.
The Calabasas Hills, CA-based company reported fourth quarter earnings of $24.5 million, or 48 cents per diluted share on an adjusted basis. The company reported earnings of 57 cents per diluted share last year and fell short of analysts' 60 cent per share expectations this year.
The company also reported fourth quarter earnings of $499.7 million, short of analysts' $510.3 million consensus estimates for the period.
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TheStreet Ratings team rates CHEESECAKE FACTORY INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CHEESECAKE FACTORY INC (CAKE) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures, notable return on equity and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- You can view the full analysis from the report here: CAKE Ratings Report