2024-01-22 21:35:23 ET
Summary
- The Cheesecake Factory gets a bullish rating today.
- Positive drivers include prior revenue, earnings, and dividend growth along with new restaurant growth and +3% dividend yield.
- Headwinds include what appears to be an overvalued price-to-book ratio driven by weak equity growth.
- A risk to consider is the potential recession impacting discretionary spending on restaurants.
Thesis Summary
Today's research article covers The Cheesecake Factory ( CAKE ) , in the consumer discretionary / restaurant sector, to which I gave a buy rating . My portfolio strategy with this stock is (stable dividend income generation and growth, capital gains).
A few points supporting my rating include YoY revenue growth and expected continued growth of new restaurants, a return to profitability after a net loss a year ago, a return to dividend growth after the pandemic years along with a +3.3% yield, and a justifiable P/E valuation....
Read the full article on Seeking Alpha
For further details see:
The Cheesecake Factory: A Bullish Case Of Restaurant Growth And 3% Dividend Yield