Jim McGovern
Cheesecake Factory Inc (The)
CAKE-Q
TOP PICK
Feb 09, 2017
*Short*This has been a great performing stock. It is at a 52-week high today, but thinks it has peaked out, both on the margins and the dairy portion. It has been one of the few restaurant chains that has been able to raise prices, but that is pretty much tapped out. Also, they are 90% impacted with the whole mall experience in a secular decline. He is not looking for a big hit on this, but something back into the $50s or high $40 level. Yield of 1.57%. (Analysts’ price target is $58.40.)
It was trading at $49 when a large order occurred; he started started buying $55 October calls. Today, it's making a nice 3-4% move. It's more than tripled since the Covid bottom. He will hold them for two months.
*Short* This has been a great performing stock. It is at a 52-week high today, but thinks it has peaked out, both on the margins and the dairy portion. It has been one of the few restaurant chains that has been able to raise prices, but that is pretty much tapped out. Also, they are 90% impacted with the whole mall experience in a secular decline. He is not looking for a big hit on this, but something back into the $50s or high $40 level. Yield of 1.57%. (Analysts’ price target is $58.40.)