What Happened?
Shares of restaurant company Cheesecake Factory (NASDAQ:CAKE) jumped 14.5% in the morning session after the company reported third-quarter results that blew past analysts' EBITDA expectations. Management highlighted market share gains as the business continued to expand its footprint. Its EPS also outperformed Wall Street's estimates, showing that some of the improvements are reflected in the bottom line. Overall, we think this was a strong quarter.
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What The Market Is Telling Us
The Cheesecake Factory’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. Moves this big are rare for The Cheesecake Factory and indicate this news significantly impacted the market’s perception of the business.
The Cheesecake Factory is up 38.8% since the beginning of the year, and at $47.73 per share, has set a new 52-week high. Investors who bought $1,000 worth of The Cheesecake Factory’s shares 5 years ago would now be looking at an investment worth $1,145.
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