NEW YORK (TheStreet) -- Shares of Cheesecake Factory Inc. are down by 11.39% to $47 on heavy volume in mid-morning trading on Thursday, following the release of the company's 2014 fourth quarter earnings results which missed analysts' expectations. The restaurant chain, famous for its signature cheesecakes, said its earned 48 cents per share for the quarter, analysts had predicted 60 cents per share. Total revenue for the 2014 fourth quarter was $499.7 million versus the $509.08 million analysts were expecting. Exclusive Report: Jim Cramer's Best Stocks for 2015 STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. Cheesecake factory said it faced a "challenging" operating environment in 2014 but added that it believes it will be able to grow the company in 2015 and is planning on opening as many as 11 company owned restaurants domestically. Separately, TheStreet Ratings team rates CHEESECAKE FACTORY INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation: "We rate CHEESECAKE FACTORY INC (CAKE) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures, notable return on equity and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins." Highlights from the analysis by TheStreet Ratings Team goes as follows: The revenue growth came in higher than the industry average of 7.9%. Since the same quarter one year prior, revenues slightly increased by 6.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share. CAKE's debt-to-equity ratio is very low at 0.19 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.31 is very weak and demonstrates a lack of ability to pay short-term obligations. The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market on the basis of return on equity, CHEESECAKE FACTORY INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500. Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. 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. You can view the full analysis from the report here: CAKE Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
Click to view a price quote on CAKE. Click to research the Leisure industry.
from Latest TSC Headlines http://ift.tt/1Cj4qV7
No comments:
Post a Comment