Cheesecake Factory (CAKE) Reaches New Lifetime High Today

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Cheesecake Factory ( CAKE) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Cheesecake Factory as such a stock due to the following factors:

  • CAKE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $41.1 million.
  • CAKE has traded 627,971 shares today.
  • CAKE is trading at a new lifetime high.

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More details on CAKE:

The Cheesecake Factory Incorporated owns and operates upscale, casual dining, full-service restaurants. The stock currently has a dividend yield of 1.3%. CAKE has a PE ratio of 23.3. Currently there are 6 analysts that rate Cheesecake Factory a buy, no analysts rate it a sell, and 15 rate it a hold.

The average volume for Cheesecake Factory has been 637,500 shares per day over the past 30 days. Cheesecake Factory has a market cap of $2.4 billion and is part of the services sector and leisure industry. The stock has a beta of 0.59 and a short float of 12.5% with 6.70 days to cover. Shares are up 33.7% year to date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Cheesecake Factory as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, good cash flow from operations, increase in net income and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • CAKE's revenue growth has slightly outpaced the industry average of 1.6%. Since the same quarter one year prior, revenues slightly increased by 3.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • Net operating cash flow has increased to $43.51 million or 32.32% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -13.24%.
  • CHEESECAKE FACTORY INC reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CHEESECAKE FACTORY INC increased its bottom line by earning $1.78 versus $1.66 in the prior year. This year, the market expects an improvement in earnings ($2.12 versus $1.78).
  • The net income growth from the same quarter one year ago has exceeded that of the Hotels, Restaurants & Leisure industry average, but is less than that of the S&P 500. The net income increased by 0.6% when compared to the same quarter one year prior, going from $28.40 million to $28.58 million.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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