Today Cheesecake Factory (CAKE) Hits New Lifetime High

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.

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 $40.0 million.
  • CAKE has traded 2,213 shares today.
  • CAKE is trading at a new lifetime high.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in CAKE with the Ticky from Trade-Ideas. See the FREE profile for CAKE NOW at Trade-Ideas

More details on CAKE:

The Cheesecake Factory Incorporated operates full-service and casual dining restaurants. The company also produces cheesecakes and other baked products for foodservice operators, retailers, and distributors. The stock currently has a dividend yield of 1.2%. CAKE has a PE ratio of 26. Currently there are 4 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 717,000 shares per day over the past 30 days. Cheesecake Factory has a market cap of $2.7 billion and is part of the services sector and leisure industry. The stock has a beta of 0.57 and a short float of 11% with 6.87 days to cover. Shares are up 9% year-to-date as of the close of trading on Thursday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

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, solid stock price performance, increase in net income, reasonable valuation levels and growth in earnings per share. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 7.4%. Since the same quarter one year prior, revenues slightly increased by 7.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 26.2% when compared to the same quarter one year prior, rising from $22.52 million to $28.42 million.
  • CHEESECAKE FACTORY INC has improved earnings per share by 30.2% in the most recent quarter compared to the same quarter a year ago. 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 reported lower earnings of $1.98 versus $2.11 in the prior year. This year, the market expects an improvement in earnings ($2.25 versus $1.98).

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

More from Markets

Stocks Tumble as Trump Comments Lead to Worries Over China Trade Talks

Stocks Tumble as Trump Comments Lead to Worries Over China Trade Talks

Tiffany & Co. Sees a Strong Market in Asia

Tiffany & Co. Sees a Strong Market in Asia

Imagining the Stock Market in 10 Years

Imagining the Stock Market in 10 Years

Video: Jim Cramer on the Markets, Tiffany, Micron Technology and Union Pacific

Video: Jim Cramer on the Markets, Tiffany, Micron Technology and Union Pacific

Red Robin Slumps After Earnings Miss

Red Robin Slumps After Earnings Miss