Cheesecake Factory topped a buy point of a consolidation pattern Monday but closed below it. The restaurant chain has been a strong performer over the past year with quarterly earnings growth ranging from 20% to over 1,000%. Cheesecake Factory stock was virtually unchanged Monday.
Also on Monday, the IBD Relative Strength (RS) Rating for Cheesecake Factory stock popped 10 points, from 70 to 80, passing a major milestone along the way.
The upgraded RS Rating shows that Cheesecake Factory stock bested 80% of all stocks in IBD's database for price performance this past year. It's a noteworthy upgrade because market research shows that the best stocks typically have an 80 or higher RS Rating in the early stages of their moves.
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Cheesecake Factory Stock At Highest Level In More Than 2 Years
Cheesecake Factory stock is trading at the highest level since March 2022. After topping a 41.25 buy point and rising to 41.34 Monday, Cheesecake stock dipped 0.1% to close at 40.57. Look for it to retake the buy point in strong volume.
Cheesecake Factory operates around 339 restaurants under various brands led by its namesake restaurants. It's known for its tasty desserts, especially cheesecakes. But it says on its website that it offers more than 250 dishes on its menu, and it prides itself on being "a leader in experiential dining."
Among its other ratings Cheesecake Factory stock has an 82 Composite Rating, an amalgam of five key fundamental and technical ratings. It's a good but not yet great rating. Top growth stocks typically have a 90 or higher Composite. The Calabasas Hills, Calif.-based company, north of Los Angeles, has a terrific 96 EPS Rating out of 99.
One yellow flag is its D+ Accumulation/Distribution Rating on an A+ to E scale. That shows that institutional investors like ETFs and insurance funds are selling more shares than buying. Look for that to improve to C or better. The number of funds holding Cheesecake stock edged up to 363 in the June-ended quarter, from 360 in March.
The company saw earnings and sales growth rise on a quarter-over-quarter basis last quarter. Cheesecake earnings per share increased 24% to $1.09 per share. Revenue rose 4% to $904 million. The prior three stanzas Cheesecake reported EPS gains of over 1,000%, 43% and 20%.
Among Top 5 In Industry Group.
Cheesecake Factory stock holds the No. 5 rank among its peers in the 54-stock Retail-Restaurants industry group. Fast casual Mediterranean food chain Cava Group is the top-ranked stock in the group.
The exclusive Relative Strength Rating from Investor's Business Daily measures price performance with a 1 (worst) to 99 (best) score. The score shows how a stock's price performance over the trailing 52 weeks compares to all the other stocks in our database.
Please follow James DeTar on X, formerly known as Twitter, @JimDeTar
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