Let's dig into the relative performance of The Cheesecake Factory (NASDAQ:CAKE) and its peers as we unravel the now-completed Q1 sit-down dining earnings season.
Sit-down restaurants offer a complete dining experience with table service. These establishments span various cuisines and are renowned for their warm hospitality and welcoming ambiance, making them perfect for family gatherings, special occasions, or simply unwinding. Their extensive menus range from appetizers to indulgent desserts and wines and cocktails. This space is extremely fragmented and competition includes everything from publicly-traded companies owning multiple chains to single-location mom-and-pop restaurants.
The 14 sit-down dining stocks we track reported an ok Q1; on average, revenues missed analyst consensus estimates by 0.9%. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and sit-down dining stocks have held roughly steady amidst all this, with share prices up 0.8% on average since the previous earnings results.
The Cheesecake Factory (NASDAQ:CAKE)
Celebrated for its delicious (and free) brown bread, gigantic portions, and delectable desserts, Cheesecake Factory (NASDAQ:CAKE) is an iconic American restaurant chain that also owns and operates a portfolio of separate restaurant brands.
The Cheesecake Factory reported revenues of $891.2 million, up 2.9% year on year, in line with analysts' expectations. It was a decent quarter for the company, with an impressive beat of analysts' gross margin estimates. On the other hand, same store sales was just in line.
“The Cheesecake Factory restaurants comparable sales and traffic once again meaningfully outperformed the industry,” said David Overton, Chairman and Chief Executive Officer.
The stock is up 13.3% since the results and currently trades at $38.5.
Is now the time to buy The Cheesecake Factory? Access our full analysis of the earnings results here, it's free.
Best Q1: BJ's (NASDAQ:BJRI)
Founded in 1978 in California, BJ’s Restaurants (NASDAQ:BJRI) is a chain of restaurants whose menu features classic American dishes, often with a twist.
BJ's reported revenues of $337.3 million, down 1.2% year on year, in line with analysts' expectations. It was an exceptional quarter for the company, with an impressive beat of analysts' earnings estimates.
The stock is up 4.9% since the results and currently trades at $34.35.
Is now the time to buy BJ's? Access our full analysis of the earnings results here, it's free.
Weakest Q1: Dine Brands (NYSE:DIN)
Operating a franchise model, Dine Brands (NYSE:DIN) is a casual restaurant chain that owns the Applebee’s and IHOP banners.
Dine Brands reported revenues of $206.2 million, down 3.5% year on year, falling short of analysts' expectations by 2%. It was a weak quarter for the company, with a miss of analysts' revenue and earnings estimates.
The stock is down 10.2% since the results and currently trades at $39.2.
Read our full analysis of Dine Brands's results here.
Red Robin (NASDAQ:RRGB)
Known for its bottomless steak fries, Red Robin (NASDAQ:RRGB) is a chain of casual restaurants specializing in burgers and general American fare.
Red Robin reported revenues of $388.5 million, down 7% year on year, falling short of analysts' expectations by 1.1%. It was a decent quarter for the company, with gross margin exceeding expectations. In addition, full-year revenue and adjusted EBITDA guidance was maintained and came in higher than Wall Street's estimates.
Red Robin had the slowest revenue growth among its peers. The stock is up 16.3% since the results and currently trades at $7.86.
Read our full, actionable report on Red Robin here, it's free.
Cracker Barrel (NASDAQ:CBRL)
Known for its country-themed food and merchandise, Cracker Barrel (NASDAQ:CBRL) is a beloved American restaurant and retail chain that celebrates the warmth and charm of Southern hospitality.
Cracker Barrel reported revenues of $817.1 million, down 1.9% year on year, falling short of analysts' expectations by 0.4%. It was a very strong quarter for the company, with a solid beat of analysts' earnings estimates.
The stock is up 7% since the results and currently trades at $48.47.
Read our full, actionable report on Cracker Barrel here, it's free.
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