The Cheesecake Factory Named Bull of the Day as Dropbox Slumps
The Cheesecake Factory has earned a spot as Zacks' Bull of the Day after its recent earnings report impressed analysts. CAKE shares have been rising due to the company's strong performance in the second quarter, with revenue up 7.7% year-over-year and adjusted earnings beating expectations by more than 3%. The Cheesecake Factory has built itself into a legitimate multi-brand restaurant growth story beyond just its namesake cheesecakes.
The company operates a diverse portfolio of restaurants, including North Italia, Flower Child, and concepts under Fox Restaurant Concepts. This growth story is backed up by the earnings, which have been increasing steadily. Over the last 60 days, 10 analysts have increased their earnings estimates for CAKE, with none moving lower.
The Zacks Rank has given CAKE a #1 (Strong Buy) rating due to its strong earnings estimate momentum. Current-year earnings growth is forecast at 18.5%, and next year's consensus calls for earnings around $4.96 per share, representing another double-digit increase.