The Cheesecake Factory (CAKE) Reports Q2: Everything You Need To Know Ahead Of Earnings
Restaurant company Cheesecake Factory (NASDAQ:CAKE) will be reporting results tomorrow after market hours. Here's what to look for.
The Cheesecake Factory met analysts' revenue expectations last quarter, reporting revenues of $891.2 million, up 2.9% year on year. It was a very strong quarter for the company, with an impressive beat of analysts' gross margin estimates and 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 4.9% year on year to $908.9 million, in line with the 4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.00 per share.
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 Q2 results, giving us a hint as to what we can expect. BJ's posted flat year-on-year revenue, meeting analysts' expectations, and Texas Roadhouse reported revenues up 14.5%, in line with consensus estimates. BJ's traded down 15.4% following the results while Texas Roadhouse was up 2%.
Read our full analysis of BJ's results here and Texas Roadhouse's results here.
Investors in the sit-down dining segment have had steady hands going into earnings, with share prices flat 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 $39.8 (compared to the current share price of $38.75).
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