BUZZ-Cheesecake Factory dips after $450 mln convertible debt deal unveiled

Cheesecake Factory's CAKE.O shares down 1.5% at $54.22 before the bell after news of restaurant operator's planned capital raise

California-based firm late Mon said offering privately $450 mln convertible bonds (CBs) due 2030

It intends to use up to $130 mln of net offering proceeds to repurchase its stock, and portion to partially repurchase outstanding 0.375% CBs due 2026

Based on ~51 mln shares outstanding, co has $2.8 bln market cap, per LSEG data

Last Weds, co announced Q4 rev grew 4% y/y to $921 mln and adj EPS increased from $0.80 to $1.04, both topping consensus views of $912.5 mln and $0.92

It also said expects to open up to 25 new restaurants in 2025, including potentially 3-4 Cheesecake Factory sites, 6-7 North Italia locations, 6-7 Flower Child locations, and 8-9 FRC restaurants

Through Mon close, CAKE shares have risen ~16% YTD and ~54% over the past 12 months

Of 21 analysts covering CAKE, recommendation breakdown is 10 "strong buy" or "buy", 7 "hold" and 4 "sell" ratings; median PT of $59 up from $52 a month ago and from $48 on Nov 25 - LSEG