3 Restaurant Stocks to Put on Your Blacklist

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3 Restaurant Stocks to Put on Your Blacklist

Restaurant Stocks to Sell – Cheesecake Factory (CAKE)

cheesecake185 3 Restaurant Stocks to Put on Your BlacklistMy wife is a big fan of the Cheesecake Factory (CAKE), but I confess to not sharing her enthusiasm. Apparently a lot of people share my opinion, as results were tepid at best in the second quarter; same-store sales were up just 1.2% year over year.

The one thing CAKE does have going for it is that management is somewhat shareholder-friendly; the company recently raised its dividend by 18%, and the company is buying back stock. However, I question the real value of buybacks at 20 times earnings and more than four times book value.

As of this writing, Tim Melvin did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, http://investorplace.com/2014/08/restaurant-stocks-bwld-cake-rt/.

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