BUZZ-Cheesecake Factory rises after convertible offering boosted to $500 mln

Cheesecake Factory's CAKE.O shares up 1.1% at $55 early Weds after restaurant operator's capital raise exceeds target

California-based firm late Tues announced pricing $500 mln 2% convertible bonds (CBs) due 2030

Offering size increased by $50 mln

Initial conversion price of $70.73 represents 30% premium to stock's last close

Co plans to use $130 mln of net offering proceeds to repurchase ~2.4 mln shares of its stock, ~$290 mln to repurchase $276 mln of its outstanding 0.375% CBs due 2026, remainder for general purposes

Based on ~51.64 mln shares outstanding, co has $2.8 bln market cap, according to 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

For 2025, co said anticipates opening 25 new restaurants, comprising potentially 3-4 Cheesecake Factory sites, 6-7 North Italia locations, 6-7 Flower Child locations, and 8-9 FRC restaurants

With moves on Weds, CAKE shares up ~15% YTD vs ~1% decline in the Nasdaq Composite .IXIC. Stock closed at $35.66 a year ago

Of 21 analysts covering CAKE, recommendation breakdown is 10 "strong buy" or "buy", 7 "hold" and 4 "sell" ratings; median PT of $59 up 23% from three months ago