Cheesecake Factory (CAKE) NewsBite - CAKE Falls on DRI Revenue

Posted: Wednesday, September 30, 2009 9:51 AM EDT

Cheesecake Factory (NasdaqNM: CAKE) opened at $19.09. So far today, the stock has hit a low of $18.60 and a high of $19.20. CAKE is now trading at $18.71, down $0.89 (-4.54%). Over the last 52 weeks the stock has ranged from a low of $4.96 to a high of $21.01. Shares of CAKE are declining with other restaurants this morning after competitor Darden Restaurants (DRI) reported first-quarter sales of $1.73 billion, missing analysts' forecasts of $1.78 billion. This could be a bad sign for CAKE. Technical indicators for the stock are bearish and S&P gives CAKE a negative 1 STARS (out of 5) strong sell ranking. If you are looking for a hedged play on CAKE the stock seems like it could be a candidate for a January out-of-the-money bear-call credit spread above the 22.50 range. [ABR-Seven Summits Strategic Investments NewsBite]

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