The Cheesecake Factory Incorporated (NASDAQ: CAKE) Future Looks Bright
December 16, 2009 9:57 AM
Barclays Capital continues to maintain its Equal Weight rating on The Cheesecake Factory Incorporated (NASDAQ: CAKE)(FREE stock trend analysis) but increased its price target from $18 to $20 after meeting the senior management of CAKE. Barclays feels that CAKE is a leader in the high-end segment of the casual dining industry.
Moreover, there has been continuous improvement in comp trends. CAKE is taking cost control measures and other actions to generate additional shareholder value, with excess cash used for continued debt pay down and a return to share repurchase in 2010.
The analysts expect CAKE’s recent EPS outperformance to continue. Moreover, the management is cautious about its outlook. The 2010 EPS is expected to be in the range of $1 to $1.10.
So far this year, The Cheesecake Factory Incorporated (NASDAQ: CAKE)(FREE stock trend analysis) is up over 100%. The 52-week trading range for CAKE is $6.84 - $21.01. In the previous trading session, CAKE closed at $20.52.
