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The Cheesecake Factory Earnings: What To Look For From CAKE


Adam Hejl /
2024/05/07 3:02 am EDT

Restaurant company Cheesecake Factory (NASDAQ:CAKE) will be reporting results tomorrow after market close. Here's what to expect.

The Cheesecake Factory met analysts' revenue expectations last quarter, reporting revenues of $877 million, down 1.8% year on year. It was a very strong quarter for the company, with a decent beat of analysts' earnings estimates.

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

This quarter, analysts are expecting The Cheesecake Factory's revenue to grow 2.8% year on year to $889.9 million, slowing from the 9.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.64 per share.

The Cheesecake Factory Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. The Cheesecake Factory has missed Wall Street's revenue estimates six times over the last two years.

Looking at The Cheesecake Factory's peers in the sit-down dining segment, some have already reported their Q1 results, giving us a hint as to what we can expect. BJ's revenues decreased 1.2% year on year, meeting analysts' expectations, and Brinker International reported revenues up 3.4%, in line with consensus estimates. BJ's traded up 5.9% following the results while Brinker International was also up 10.7%.

Read our full analysis of BJ's results here and Brinker International's results here.

Investors in the sit-down dining segment have had fairly steady hands going into earnings, with share prices down 1.1% on average over the last month. The Cheesecake Factory's stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $36.1 (compared to the current share price of $34.64).

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