Cheesecake Factory Finds Wall Street’s Sweet Spot
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Cheesecake Factory Inc. found a sweet spot on Wall Street, as the Calabasas-based restaurant company’s stock surged after its initial public offering was completed at $20 a share.
In its first day of trading Friday, the stock soared to $27.25 a share on volume of 3.3 million shares on the NASDAQ market. The stock then closed Monday at $26.50 a share.
Cheesecake Factory, which operates five stylish, casual dining outlets, had initially expected the shares to be offered between $13 and $15 apiece when it filed a registration statement with the Securities and Exchange Commission in May. The offering was managed by Montgomery Securities and First Boston Corp.
Of the 2.33 million shares offered, 1.18 million were sold by Cheesecake Factory, giving it gross proceeds of $23.6 million. The company plans to use the cash to repay debt and to expand.
The remaining stock was offered by certain existing stockholders, including co-founders Evelyn Overton and her son, David Overton, who is also chairman and chief executive.
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