On Friday Cheesecake Factory (NASDAQ:CAKE) stock was one of the best performers in restaurants niche, gaining more than 9% and closing at $24.23. But even with this jump CAKE shares fell almost 50% year-to-date, marking 2020 to be one of the worst years (after 2008) for the Company so far.
And to add to these miserable numbers, on Monday, June 22, prior to the open of trading, Cheesecake Factory will leave S&P MIDCAP 400 index, which provides investors with a benchmark for mid-sized companies.
The Cheesecake Factory engages in the operation of restaurants. Headquartered in Calabasas, CA, the company will be downgraded to the S&P SmallCap 600, which measures the small-cap companies of the U.S. equity market .
How will this affect the CAKE stock price? Probably slightly negative.