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Why The Cheesecake Factory Stock Dropped Today

·2 min read
Why The Cheesecake Factory Stock Dropped Today
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Casual dining restaurant chain The Cheesecake Factory (NASDAQ: CAKE) is raising $475 million, but it's not going toward growing or operating the business. Prior to today's drop, The Cheesecake Factory stock was trading near its all-time high, so it's a little hard to criticize management for taking advantage of its high stock price to raise cash. There are 200,000 outstanding Series A convertible preferred shares of The Cheesecake Factory.