The Cheesecake Factory Incorporated (CAKE) has made strategic changes to its menu, introducing 22 new items while discontinuing 13. The additions include appetisers, main courses and mocktails.Shares of this U.S.-based casual dining chain gained 5.1% during the trading session yesterday. Investors’ sentiments are likely to be boosted by the potential impact of the updated menu on customer demand and sales performance.More on Cheesecake Factory’s Menu UpdateThe Cheesecake Factory has removed several items fr ...

The Cheesecake Factory Incorporated (CAKE) has shown strong stock performance in recent months. Over the past six months, the stock has jumped 22.1%, significantly outperforming the Zacks Retail – Restaurants industry’s decline of 0.5%. It has also fared better than the broader Zacks Retail-Wholesale sector’s 2.1% growth and the S&P 500 index’s 1.6% decline during the same period.Cheesecake Factory continues to benefit from strong consumer demand, improving comparable sales and restaurant openings. The soli ...

To determine earnings, analyze revenues minus production costs. Earnings growth is crucial for all companies as survival hinges on profitability. Earnings are also considered the most important variable influencing share price. However, expectations of earnings play a striking role.Nonetheless, stocks such as The Cheesecake Factory Incorporated (CAKE) , LeMaitre Vascular, Inc. (LMAT) and Huron Consulting Group Inc. (HURN) are currently exhibiting superb earnings growth.Earnings Estimates & Share Price Movem ...

Company Operations - The Cheesecake Factory operates 334 restaurants across the U.S. and Canada, including 216 locations of The Cheesecake Factory, 37 North Italia, and 32 Flower Child[9]. - The company operates two bakery facilities producing cheesecakes and other baked goods for its restaurants and third-party customers[9]. - The company operates a total of 33 restaurants across various international locations, including 6 in the United Arab Emirates and 8 in Mexico[39]. - The company employs approximately 47,900 people, with about 46,250 in restaurants and the remainder in corporate support and bakery operations[57]. - The company has dedicated corporate personnel to support international development and operations, emphasizing the importance of training for licensees[148]. Financial Performance - The Cheesecake Factory's average sales per restaurant for fiscal 2023 were approximately $12.2 million, with average sales per productive square foot at about $1,132[27]. - The average check per customer, including beverages and desserts, was approximately $30.54 during fiscal 2023[20]. - North Italia restaurants achieved average sales of approximately $7.8 million per location for fiscal 2023, with an average check of $33.60 for lunch and $43.25 for dinner[45]. - Flower Child restaurants reported average sales of approximately $4.1 million per location for fiscal 2023, targeting 15% to 20% average annual unit growth[46]. - The company recorded impairment of assets and lease terminations expense of $29.5 million during fiscal 2023, primarily related to three The Cheesecake Factory locations and one North Italia location[150]. Sales and Marketing - During fiscal 2023, alcoholic beverage sales accounted for 11% of total restaurant sales, while off-premise sales represented approximately 22%[15]. - Dessert sales accounted for approximately 17% of total sales during fiscal 2023, highlighting the importance of the company's dessert offerings[16]. - The Cheesecake RewardsTM program was launched nationally in 2023 to enhance customer engagement and drive incremental sales[71]. - The company generated approximately 15.1 billion media impressions in fiscal 2023 at minimal cost, leveraging public relations and social media strategies[72]. Expansion Plans - The company aims to expand its brand internationally and grow its other concepts, including North Italia and Flower Child[5]. - The company plans to open as many locations as possible that meet its site selection criteria, targeting approximately 300 company-owned restaurants domestically over time[23]. - The company plans to expand its North Italia concept to approximately 200 domestic locations over time, supporting a 20% average annual unit growth[45]. - The company operates 32 Flower Child locations and targets approximately 15% to 20% average annual unit growth for this concept[46]. Cost and Inflation - The company faced significant commodity and wage inflation, impacting operating results and contributing to increased costs[12]. - The company has experienced inflationary cost pressures, leading to price increases above historical levels to maintain restaurant-level margins[125]. - The company implemented price increases above historical levels in fiscal years 2022 and 2023 to offset significant inflationary cost pressures[19]. - Significant labor cost inflation has been experienced, driven by low unemployment and increased minimum wages, which may continue to impact financial performance[98]. Risks and Challenges - The company has identified risks related to economic conditions, labor costs, and public health emergencies that could adversely affect financial performance[8]. - The company experienced significant cost inflation due to supply shortages and transportation delays, largely attributed to the COVID-19 pandemic and exacerbated by geopolitical unrest[65]. - The ongoing geopolitical and macroeconomic events may lead to shifts in consumer behavior and further operational challenges, adversely affecting financial performance[103]. - The company faces risks related to food safety, including potential contamination and food-borne illnesses, which could lead to litigation and damage reputation[104]. Technology and Operations - The company has implemented technology solutions for inventory management, labor management, and guest payment security to improve operational efficiency[69]. - The company utilizes a data warehouse architecture to provide insights into key operational metrics and performance indicators[67]. - The company maintains a focus on food safety and quality assurance, with its bakery facilities certified under the Safe Quality Food program[77]. Employee Relations - The company has been recognized on Fortune magazine's list of "100 Best Companies to Work For®" in 2023 for the tenth consecutive year, reflecting its commitment to employee satisfaction[21]. - The company has a fiscal 2023 internal management promotion rate of 41%, reflecting its commitment to staff development[53]. Legal and Compliance - The company is subject to various federal, state, and local laws and regulations, impacting operations including health, sanitation, and labor[79]. - The company is subject to various legal proceedings, including class action lawsuits, which could result in significant legal fees and adversely impact financial performance[154]. - The company faces potential legal liabilities and penalties related to data protection and privacy laws, which could adversely affect financial performance[166]. Financial Structure - The company completed the offering of $345.0 million in convertible senior notes and issued $175.0 million in common stock, using net proceeds to fund approximately $457.3 million for the conversion of Series A convertible preferred stock[178]. - As of January 2, 2024, the company had approximately $475 million in consolidated indebtedness, which may limit its ability to obtain additional financing and increase vulnerability to adverse economic conditions[179]. - The company is subject to financial covenants under its Revolver Facility, including a maximum net adjusted debt to EBITDAR ratio of 4.25 and a minimum EBITDAR to interest and rent expense ratio of 1.90[175].

I am an Equity Analyst and Accountant specializing in restaurant stocks, with a solid foundation in Business Administration and Accounting, complemented by an MBA in Forensic Accounting and Controllership. As the founder of Goulart's Restaurant Stocks, I lead a company focused on analyzing restaurant stocks in the U.S. market. Our coverage spans multiple segments, including QSR, fast casual, casual dining, fine dining, and family dining. We employ advanced analytical models and specialized valuation techniq ...

The Retail-Wholesale group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Cheesecake Factory (CAKE) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Retail-Wholesale peers, we might be able to answer that question.Cheesecake Factory is one of 212 companies in the Retail-Wholesale group. The Retail-Wholesale group currently sits at #2 within the Zacks Sector Rank. The Zacks Sec ...

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The Cheesecake Factory Incorporated (CAKE) reported fourth-quarter fiscal 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. Both top and bottom lines increased from the prior-year quarter’s figures.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Cheesecake Factory wrapped up a strong 2024, delivering record annual revenues and improved profitability, supported by solid top-line growth and earnings. The company’s success was primarily fueled by robust perfo ...

INVESTOR PRESENTATION February 19, 2025 SAFE HARBOR STATEMENT This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. This includes, without limitation, financial guidance and projections, including underlying assumptions, and statements with respect to expectations of the Company's future financial condition, results of operations, cash flows, potential price increa ...

Financial Data and Key Metrics Changes - The company reported fourth quarter total revenues of $921 million, exceeding guidance, with adjusted net income margin at 5.6% [22][30] - For the fiscal year, total revenues reached $3.58 billion, with adjusted earnings per share of $3.44, marking a 28% year-over-year increase [22][30] - Fourth quarter GAAP diluted net income per share was $0.83, while adjusted diluted net income per share was $1.04 [28] Business Line Data and Key Metrics Changes - Cheesecake Factory comparable sales increased by 1.7% year-over-year, with sales of $669.4 million, up 2% from the prior year [16][23] - North Italia sales were $81.3 million, up 21% from the prior year, with comparable sales increasing by 1% [16][23] - Flower Child sales totaled $38.2 million, up 25% from the prior year, with comparable sales increasing by 11% [19][23] Market Data and Key Metrics Changes - The Cheesecake Factory restaurant level margins for the fourth quarter were 18.4%, the highest level in over 7 years [14][15] - North Italia's restaurant-level profit margin for adjusted mature locations improved to 18.8% [17] - Flower Child's restaurant level profit margin for adjusted mature locations was 16.4% [19] Company Strategy and Development Direction - The company plans to open as many as 25 new restaurants in 2025, including 3 to 4 Cheesecake Factories and 6 to 7 North Italias [12][37] - The ongoing menu innovation is aimed at maintaining relevance without discounting, with over 20 new items introduced [10][11] - The company is focused on enhancing guest experiences and operational efficiencies to drive sustainable growth [13][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of the portfolio, supported by strong consumer demand for high-quality dining experiences [13] - The company anticipates total revenues for fiscal 2025 to be approximately $3.8 billion, with a focus on maintaining operational improvements and margin expansion [34][36] - Management noted that the labor market remains stable, contributing positively to operational efficiency [120] Other Important Information - The company ended the quarter with total available liquidity of approximately $341 million, including a cash balance of about $84 million [29] - The company recorded a pretax net expense of $14.4 million related to impairment of assets and lease termination expenses [27] Q&A Session Summary Question: Clarification on revenue guidance for 2025 - Management indicated that the increase in revenue guidance to $3.8 billion is driven by unit growth and additional operating weeks from new openings [43] Question: Outlook for margin expansion in 2025 - Management acknowledged that while margin expansion is expected, the guidance is conservative due to increased preopening expenses and new unit openings [44][46] Question: Drivers of fourth quarter margin performance - Management highlighted strong sales and improved labor productivity as key drivers of margin performance across all concepts [52][54] Question: Trends in consumer behavior - Management noted that consumer behavior remains resilient, with no significant signs of anxiety impacting sales [140] Question: Impact of the rewards program - Management reported positive member acquisition and high guest satisfaction scores from the Cheesecake Rewards program, focusing on enhancing guest engagement [67][68] Question: Pricing expectations for 2025 - Management indicated that pricing will remain consistent, with no significant increases anticipated beyond current levels [73] Question: Performance of Flower Child - Management attributed the strong performance of Flower Child to increased brand awareness, catering introduction, and operational improvements [81] Question: Long-term margin potential for North Italia and Flower Child - Management expects North Italia to achieve mature margins similar to Cheesecake Factory, while Flower Child operates between 16% and 18% margins [152]