The Cheesecake Factory (CAKE) Reports Earnings Tomorrow. What To Expect

Max Juang /
2023/10/31 4:33 am EDT

Restaurant company Cheesecake Factory (NASDAQ:CAKE) will be announcing earnings results tomorrow after the bell. Here's what you need to know.

Last quarter The Cheesecake Factory reported revenues of $866.2 million, up 4.03% year on year, missing analyst expectations by 1.55%. It was a weak quarter for the company, with a miss of analysts' revenue estimates.

Is The Cheesecake Factory buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting The Cheesecake Factory's revenue to grow 7.43% year on year to $842.3 million, improving on the 3.91% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.42 per share.

The Cheesecake Factory Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates six times over the last two years.

Looking at The Cheesecake Factory's peers in the sit-down dining segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. BJ's delivered top-line growth of 2.34% year on year, missing analyst estimates by 2.22% and Texas Roadhouse reported revenues up 12.9% year on year, missing analyst estimates by 0.06%. BJ's traded down 2.3% on the results, and Texas Roadhouse was down 1.7%.

Read our full analysis of BJ's's results here and Texas Roadhouse's results here.

Technology stocks have been hit hard by fears of higher interest rates and while some of the sit-down dining stocks have fared somewhat better, they have not been spared, with share price declining 2.69% over the last month. The Cheesecake Factory is up 3.51% during the same time, and is heading into the earnings with analyst price target of $34, compared to share price of $30.6.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

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The author has no position in any of the stocks mentioned.