Taking a Fresh Look at The Cheesecake Factory Incorporated (CAKE)

The Cheesecake Factory Incorporated (NASDAQ:CAKE) is an interesting player in the Services space, with a focus on Restaurants. The stock has been active on the tape, currently trading at $60.42, up from yesterday’s close by -0.79%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

It’s important to get a feel for how any stock is actually valued on the market based on its core numbers. The Cheesecake Factory Incorporated (CAKE) currently trades with a market capitalization of $2.75B. That value represents a market adjusting for revenues that have been growing by 6.30% on a quarterly year/year basis as of the company’s last quarterly report.

The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For CAKE, the company currently has $65.85M of cash on the books, which is offset by $98.50M current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $161.79M over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of 0.67 on a per share basis this quarter. Perhaps, that suggests something about why 95.20% of the outstanding share supply is held by institutional investors.

Technical Analysis

Sometimes, we can understand most about a stock by simply looking at how it has been trading. Looking at the stock’s movement on the chart, The Cheesecake Factory Incorporated recorded a 52-week high of 64.41. It is now trading 3.51 off that level. The stock is trading 61.01 its 50-day moving average by 0.11. The stock carved out a 52-week low down at 44.16.

In recent action, The Cheesecake Factory Incorporated (CAKE) has made a move of -3.57% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is outperforming the S&P 500 by 8.53, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 42.19M with 16.63% sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of CAKE.

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