Restaurant company Cheesecake Factory (NASDAQ:CAKE) will be reporting results tomorrow after the bell. Here's what investors should know.
Last quarter The Cheesecake Factory reported revenues of $830.2 million, up 5.9% year on year, missing analyst expectations by 1.4%. It was a mixed quarter for the company, with an impressive beat of analysts' gross margin estimates but a miss of analysts' revenue estimates.
This quarter analysts are expecting The Cheesecake Factory's revenue to decline 1.9% year on year to $875.9 million, a deceleration on the 14.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.73 per share.
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 Q4 earnings results, giving us a hint of what we can expect. Texas Roadhouse delivered top-line growth of 15.3% year on year, beating analyst estimates by 0.3% and Brinker International reported revenues up 5.4% year on year, missing analyst estimates by 0.4%. Both companies (Texas Roadhouse and Brinker International) traded flat on the results.
There has been positive sentiment among investors in the sit-down dining segment, with the stocks up on average 2.9% over the last month. The Cheesecake Factory is up 2.5% during the same time, and is heading into the earnings with analyst price target of $34.9, compared to share price of $34.9.
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