Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.Zacks Premium includes access to the Zacks Style Scores as well.What are the Zacks Style Scores?The Zac ...

The Cheesecake Factory Incorporated (CAKE) is likely to benefit from strong Flower Child performance, its rewards program and unit-expansion efforts. This and the focus on FRC concepts and emerging brands bode well. However, labor and commodity inflation is a concern.Let us discuss the factors that highlight why investors should retain the stock for now.Factors Driving GrowthCheesecake Factory focuses on Flower Child restaurants to drive growth. In the fiscal first quarter, the company reported strong compa ...

With many market strategists turning slightly bullish amid this bull market, investors may wonder if there’s still any deep value left for the rest of us. Undoubtedly, not all companies have pulled their fair share of weight in the 2024 market surge. Some investors may have ditched the lagging stocks for some hotter names, some of which may have more exposure to the latest needle-moving trends (generative AI, anyone?).As the first half of 2024 comes to a close in just over a month, we may see some of the mo ...

Group 1: Zacks Premium Overview - Zacks Premium offers various tools to enhance investor confidence and market engagement, including daily updates on Zacks Rank and Industry Rank, Equity Research reports, and Premium stock screens [1] - The service includes access to Zacks Style Scores, which are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Group 2: Zacks Style Scores - Zacks Style Scores evaluate stocks based on value, growth, and momentum characteristics, assigning ratings from A to F, with A indicating the highest potential for outperformance [2] - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales [3] - The Growth Score assesses a company's financial health and future outlook based on earnings, sales, and cash flow projections [3] - The Momentum Score identifies stocks with favorable price trends and earnings outlooks, utilizing recent price changes and earnings estimate revisions [3] - The VGM Score combines the three Style Scores to highlight stocks with attractive value, growth potential, and positive momentum [4] Group 3: Zacks Rank and Style Scores Integration - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [5] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 that also have Style Scores of A or B for optimal investment success [6] - Stocks with lower ranks, such as 4 (Sell) or 5 (Strong Sell), may still have good Style Scores but are likely to face downward price pressure due to negative earnings outlooks [6] Group 4: Company Spotlight - Cheesecake Factory (CAKE) - As of January 2, 2024, Cheesecake Factory operates 334 restaurants across the U.S. and Canada, including brands like The Cheesecake Factory and North Italia [7] - CAKE holds a Zacks Rank of 3 (Hold) and has a VGM Score of A, indicating a solid position in the market [7] - The stock has a Momentum Style Score of A, with a 6.6% increase in share price over the past four weeks, and six analysts have raised earnings estimates for fiscal 2024 [7] - The Zacks Consensus Estimate for CAKE has risen by $0.03 to $3.11 per share, with an average earnings surprise of 6.4% [7]

The Cheesecake Factory Incorporated (CAKE) reported impressive first-quarter fiscal 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased from the prior-year quarter’s figure.Earnings & Revenue DiscussionIn the quarter under review, the company reported adjusted earnings per share (EPS) of 73 cents, beating the Zacks Consensus Estimate of 63 cents by 15.9%. In the year-ago period, the company reported adjusted EPS of 61 cents.Quarterly revenues ...

The Cheesecake Factory Incorporated (NASDAQ:CAKE) Q1 2024 Earnings Conference Call May 8, 2024 5:00 PM ET Company Participants Etienne Marcus - Vice President of Finance & Investor Relations David Overton - Chairman & Chief Executive Officer David Gordon - President Matt Clark - Executive Vice President & Chief Financial Officer Conference Call Participants David Tarantino - Baird Katherine Griffin - Bank of America Brian Mullan - Piper Sandler Brian Vaccaro - Raymond James Jim Salera - Stephens Jon Tower - ...

Cheesecake Factory (CAKE) reported $891.22 million in revenue for the quarter ended March 2024, representing a year-over-year increase of 2.9%. EPS of $0.73 for the same period compares to $0.61 a year ago.The reported revenue represents a surprise of +0.33% over the Zacks Consensus Estimate of $888.27 million. With the consensus EPS estimate being $0.63, the EPS surprise was +15.87%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to W ...

Cheesecake Factory (CAKE) came out with quarterly earnings of $0.73 per share, beating the Zacks Consensus Estimate of $0.63 per share. This compares to earnings of $0.61 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 15.87%. A quarter ago, it was expected that this restaurant chain would post earnings of $0.74 per share when it actually produced earnings of $0.80, delivering a surprise of 8.11%.Over the last four quarters, t ...

Revenue and Sales Performance - Revenues increased by 2.9% to $891.2 million for the fiscal quarter ended April 2, 2024, compared to $866.1 million for the same period in the prior year, primarily due to new restaurant openings[97] - The Cheesecake Factory sales rose by 1.8% to $667.8 million in the first quarter of fiscal 2024, while average sales per restaurant operating week decreased by 0.7% to $237,903[98] - Comparable sales for The Cheesecake Factory decreased by 0.6%, or $3.9 million, driven by a 1.5% decline in customer traffic, partially offset by a 0.9% increase in average check[98] - Sales through the off-premise channel accounted for approximately 22% of restaurant sales in the first quarter of fiscal 2024, down from 23% in the prior year[98] - North Italia sales increased 12.0% to $70.9 million for Q1 fiscal 2024, compared to $63.3 million in Q1 fiscal 2023[99] - Flower Child sales rose 10.2% to $34.5 million for Q1 fiscal 2024, up from $31.3 million in Q1 fiscal 2023[101] - Other FRC sales increased 8.2% to $74.2 million for Q1 fiscal 2024, compared to $68.6 million in Q1 fiscal 2023[102] - Total revenue for fiscal 2024 is anticipated to be approximately $3.6 billion[115] Cost Management and Financial Metrics - The Cheesecake Factory's food and beverage costs decreased to 22.8% of revenues in the fiscal quarter ended April 2, 2024, down from 23.8% in the prior year[96] - Total costs and expenses were 95.6% of revenues for the fiscal quarter ended April 2, 2024, compared to 96.1% for the same period in the prior year[96] - The company is focused on managing expenses prudently at restaurants, bakery facilities, and corporate support centers to leverage purchasing power[85] - The effective income tax rate decreased to 11.6% in Q1 fiscal 2024 from 12.5% in Q1 fiscal 2023[110] - The company expects a net income margin of approximately 4.25% for fiscal 2024[115] Capital Expenditures and Growth Plans - The company plans to continue expanding The Cheesecake Factory and North Italia concepts, focusing on premier locations in both new and existing markets[85] - The company aims for a targeted annual unit growth of 7% across concepts, combined with margin expansion to support a long-term financial objective of 13% to 14% total return to shareholders[93] - The company plans to open up to 22 new restaurants in fiscal 2024, with capital expenditures estimated between $180 million to $200 million[116] - Capital expenditures for new restaurants were $25.0 million in Q1 fiscal 2024, compared to $24.3 million in Q1 fiscal 2023[121] Shareholder Returns and Stock Activity - Common stock dividends paid were $12.8 million in Q1 fiscal 2024, compared to $13.2 million in Q1 fiscal 2023[125] - The company has repurchased 56.9 million shares at a total cost of $1,824.2 million, with 0.4 million shares repurchased for $12.5 million in Q1 fiscal 2024[127] - The company has cumulative share repurchase authorization of up to 61.0 million shares, with no expiration date[128] Liquidity and Financial Stability - Cash provided by operating activities increased by $1.7 million in Q1 fiscal 2024, totaling $66.7 million[120] - The company believes its cash and cash equivalents, along with expected cash flows and available borrowings, will provide adequate liquidity for the next 12 months[129] - The company entered into a Fourth Amended and Restated Loan Agreement providing a $400 million Revolver Facility, with $236.5 million net availability for borrowings as of April 2, 2024[123] - The Revolver Facility includes financial covenants that limit equity distributions and restrict certain financial activities[124] Risk Management - A hypothetical 1% increase in food costs would have negatively impacted cost of sales by $2.0 million in Q1 fiscal 2024[136] - A hypothetical 1% rise in interest rates would increase annual interest expense by $1.3 million based on borrowings as of April 2, 2024[137] - The company has not experienced changes in internal control over financial reporting that materially affect its financial reporting[139] - The company has no hedging contracts in place as of April 2, 2024, to manage commodity price risks[135]

Executive Summary & Q1 2024 Financial Highlights [Q1 2024 Financial Performance and CEO Commentary](index=1&type=section&id=Q1%202024%20Financial%20Performance%20and%20CEO%20Commentary) Q1 2024 revenues rose to $891.2 million, net income $33.2 million, and diluted EPS $0.68, reflecting operational improvements Q1 Fiscal 2024 Financial Performance (GAAP & Adjusted) | Metric | Q1 Fiscal 2024 (GAAP, in millions) | Q1 Fiscal 2024 (Adjusted, in millions) | Q1 Fiscal 2023 (GAAP, in millions) | | :-------------------------------- | :-------------------- | :------------------------ | :-------------------- | | Total Revenues | $891.2 | N/A | $866.1 | | Net Income | $33.2 | $35.6 | $28.05 | | Diluted Net Income Per Share | $0.68 | $0.73 | $0.56 | | Comparable Restaurant Sales (The Cheesecake Factory) | (0.6)% | N/A | 5.7% | - CEO David Overton stated that The Cheesecake Factory restaurants' comparable sales and traffic **meaningfully outperformed the industry**, with sales improving throughout the quarter and operational improvements contributing to **significant profitability growth**[3](index=3&type=chunk) Business Operations & Development [Restaurant Development](index=2&type=section&id=Restaurant%20Development) Q1 2024 saw **five new restaurant openings**, including one international Cheesecake Factory, with plans for up to **22 new restaurants** - During Q1 fiscal **2024**, the Company opened **five new restaurants**: **two North Italia**, **two FRC**, and **one Flower Child** location. Additionally, **one Cheesecake Factory restaurant opened internationally** under a licensing agreement in Mexico. Subsequent to quarter-end, **another Cheesecake Factory restaurant opened internationally** in Asia[4](index=4&type=chunk) - The Company expects to open **as many as 22 new restaurants** in fiscal **2024**, including **3-4 The Cheesecake Factory**, **6-7 North Italia**, **6-7 Flower Child**, and **6-7 FRC restaurants**[4](index=4&type=chunk) [Company Overview](index=2&type=section&id=Company%20Overview) The Cheesecake Factory operates **335** U.S./Canada restaurants and **34** international licensed locations, recognized as a top employer - The Company owns and operates **335 restaurants** throughout the United States and Canada under brands including The Cheesecake Factory, North Italia, Flower Child, and a collection of other FRC brands. Internationally, **34 The Cheesecake Factory restaurants** operate under licensing agreements[7](index=7&type=chunk)[18](index=18&type=chunk) - The Company was named to the FORTUNE Magazine "100 Best Companies to Work For" list for the **eleventh consecutive year** in **2024**[3](index=3&type=chunk)[7](index=7&type=chunk) Liquidity and Capital Allocation [Liquidity and Capital Allocation Details](index=2&type=section&id=Liquidity%20and%20Capital%20Allocation%20Details) As of April 2, 2024, liquidity was $296.7 million, debt $475 million, with $12.5 million in share repurchases and a $0.27 dividend Liquidity and Debt (as of April 2, 2024) | Metric | Amount (in millions) | | :-------------------------------- | :------------- | | Total Available Liquidity | $296.7 | | Cash Balance | $60.2 | | Revolving Credit Facility Availability | $236.5 | | Total Principal Debt Outstanding | $475 | | - 0.375% Convertible Senior Notes due 2026 | $345 | | - Revolving Credit Facility Drawn | $130 | - In Q1 fiscal **2024**, the Company repurchased approximately **359,400 shares** of its stock at a cost of **$12.5 million**. The Board of Directors declared a quarterly dividend of **$0.27 per share**, payable on June 4, **2024**[5](index=5&type=chunk) Condensed Consolidated Financial Statements [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Q1 2024 revenues grew 2.9% to $891.2 million, operating income rose 15.8% to $39.3 million, with diluted EPS at $0.68 Consolidated Statements of Income (13 Weeks Ended) | Metric | April 2, 2024 (in thousands) | April 2, 2024 (% of Revenues) | April 4, 2023 (in thousands) | April 4, 2023 (% of Revenues) | | :--------------------------------------- | :-------------------------------- | :---------------------------- | :-------------------------------- | :---------------------------- | | Revenues | $891,223 | 100.0% | $866,114 | 100.0% | | Food and beverage costs | $203,253 | 22.8% | $206,224 | 23.8% | | Labor expenses | $320,930 | 36.0% | $311,528 | 36.0% | | Other operating costs and expenses | $233,541 | 26.3% | $230,929 | 26.7% | | General and administrative expenses | $60,366 | 6.8% | $54,069 | 6.2% | | Depreciation and amortization expenses | $24,756 | 2.8% | $22,955 | 2.7% | | Impairment of assets and lease termination expenses | $2,083 | 0.2% | $2,242 | 0.3% | | Acquisition-related contingent consideration, compensation and amortization expenses | $1,121 | 0.1% | $1,189 | 0.1% | | Preopening costs | $5,880 | 0.6% | $3,052 | 0.3% | | Total costs and expenses | $851,930 | 95.6% | $832,188 | 96.1% | | Income from operations | $39,293 | 4.4% | $33,926 | 3.9% | | Interest and other expense, net | $(1,761) | (0.2)% | $(1,880) | (0.2)% | | Income before income taxes | $37,532 | 4.2% | $32,046 | 3.7% | | Income tax provision | $4,341 | 0.5% | $3,996 | 0.5% | | Net income | $33,191 | 3.7% | $28,050 | 3.2% | | Basic net income per share | $0.70 | N/A | $0.58 | N/A | | Diluted net income per share | $0.68 | N/A | $0.56 | N/A | [Selected Segment Information](index=5&type=section&id=Selected%20Segment%20Information) The Cheesecake Factory segment led revenue and operating income growth; North Italia and Other FRC saw revenue gains but operating income declines [Segment Revenues](index=5&type=section&id=Segment%20Revenues) Revenues by Segment (13 Weeks Ended) | Segment | April 2, 2024 (in thousands) | April 4, 2023 (in thousands) | YoY Change | | :----------------------------- | :--------------------------- | :--------------------------- | :--------- | | The Cheesecake Factory restaurants | $667,794 | $656,000 | +1.8% | | North Italia | $70,874 | $63,303 | +11.9% | | Other FRC | $74,229 | $68,640 | +8.1% | | Other | $78,326 | $78,171 | +0.2% | | **Total** | **$891,223** | **$866,114** | **+2.9%** | [Segment Operating Income/(Loss)](index=5&type=section&id=Segment%20Operating%20Income%2F%28Loss%29) Income/(Loss) from Operations by Segment (13 Weeks Ended) | Segment | April 2, 2024 (in thousands) | April 4, 2023 (in thousands) | YoY Change | | :----------------------------- | :--------------------------- | :--------------------------- | :--------- | | The Cheesecake Factory restaurants | $86,071 | $78,386 | +9.8% | | North Italia | $3,170 | $4,606 | -31.2% | | Other FRC | $6,292 | $8,711 | -27.7% | | Other | $(56,240) | $(57,777) | +2.7% | | **Total** | **$39,293** | **$33,926** | **+15.8%** | [Segment Depreciation and Amortization](index=5&type=section&id=Segment%20Depreciation%20and%20Amortization) Depreciation and Amortization Expenses by Segment (13 Weeks Ended) | Segment | April 2, 2024 (in thousands) | April 4, 2023 (in thousands) | | :----------------------------- | :--------------------------- | :--------------------------- | | The Cheesecake Factory restaurants | $16,843 | $16,018 | | North Italia | $1,971 | $1,467 | | Other FRC | $2,425 | $1,927 | | Other | $3,517 | $3,543 | | **Total** | **$24,756** | **$22,955** | [Segment Impairment and Lease Termination Expenses](index=5&type=section&id=Segment%20Impairment%20and%20Lease%20Termination%20Expenses) Impairment of Assets and Lease Termination Expenses by Segment (13 Weeks Ended) | Segment | April 2, 2024 (in thousands) | April 4, 2023 (in thousands) | | :----------------------------- | :--------------------------- | :--------------------------- | | The Cheesecake Factory restaurants | $1,859 | $93 | | North Italia | - | - | | Other FRC | - | $55 | | Other | $224 | $2,094 | | **Total** | **$2,083** | **$2,242** | [Segment Preopening Costs](index=5&type=section&id=Segment%20Preopening%20Costs) Preopening Costs by Segment (13 Weeks Ended) | Segment | April 2, 2024 (in thousands) | April 4, 2023 (in thousands) | | :----------------------------- | :--------------------------- | :--------------------------- | | The Cheesecake Factory restaurants | $1,758 | $1,448 | | North Italia | $2,002 | $446 | | Other FRC | $1,724 | $721 | | Other | $396 | $437 | | **Total** | **$5,880** | **$3,052** | [Segment Operating Information](index=6&type=section&id=Segment%20Operating%20Information) Comparable Restaurant Sales vs. Prior Year (13 Weeks Ended) | Segment | April 2, 2024 | April 4, 2023 | | :----------------------------- | :-------------- | :-------------- | | The Cheesecake Factory restaurants | (0.6)% | 5.7% | | North Italia | 3% | 9% | Restaurant Counts and Openings (13 Weeks Ended April 2, 2024) | Segment | Restaurants Opened During Period | Restaurants Open at Period-End (Company-Owned) | | :----------------------------- | :----------------------------- | :--------------------------------------------- | | The Cheesecake Factory restaurants | - | 216 | | North Italia | **2** | 38 | | Other FRC | **2** | 42 | | Other (Flower Child, Grand Lux Cafe, Social Monk Asian Kitchen) | **1** | 40 | | **Total Company-Owned** | **5** | **336** | | International-licensed The Cheesecake Factory | **1** (subsequent to quarter-end, **another opened**) | 33 | [Selected Consolidated Balance Sheet Information](index=6&type=section&id=Selected%20Consolidated%20Balance%20Sheet%20Information) As of April 2, 2024, cash and cash equivalents increased to $60.2 million, with long-term debt remaining stable at $470.6 million Selected Consolidated Balance Sheet Information | Metric | April 2, 2024 (in thousands) | January 2, 2024 (in thousands) | | :-------------------------------- | :--------------------------- | :--------------------------- | | Cash and cash equivalents | $60,220 | $56,290 | | Long-term debt, net of issuance costs | $470,551 | $470,047 | Reconciliation of Non-GAAP Results to GAAP Results [Non-GAAP Reconciliation Details](index=7&type=section&id=Non-GAAP%20Reconciliation%20Details) Non-GAAP adjustments for Q1 2024 resulted in adjusted net income of $35.6 million and adjusted diluted EPS of $0.73, excluding non-recurring items - Non-GAAP measurements are intended to supplement GAAP results by eliminating the impact of items the Company does not consider indicative of its ongoing operations. These measures are used for financial and operational decision-making and period-to-period comparisons[21](index=21&type=chunk) Reconciliation of Non-GAAP Financial Measures (13 Weeks Ended) | Metric | April 2, 2024 (in thousands) | April 4, 2023 (in thousands) | | :--------------------------------------------------------------------------------- | :--------------------------- | :--------------------------- | | Net income (GAAP) | $33,191 | $28,050 | | Impairment of assets and lease termination expenses | 2,083 | 2,242 | | Acquisition-related contingent consideration, compensation and amortization expenses | 1,121 | 1,189 | | Tax effect of adjustments | (833) | (892) | | **Adjusted net income (non-GAAP)** | **$35,562** | **$30,589** | | Diluted net income per share (GAAP) | $0.68 | $0.56 | | Impairment of assets and lease termination expenses | 0.04 | 0.05 | | Acquisition-related contingent consideration, compensation and amortization expenses | 0.02 | 0.02 | | Tax effect of adjustments | (0.02) | (0.02) | | **Adjusted net income per share (non-GAAP)** | **$0.73** | **$0.61** | Additional Information [Conference Call and Webcast](index=2&type=section&id=Conference%20Call%20and%20Webcast) A conference call on May 8, 2024, discussed Q1 fiscal 2024 results, with a webcast replay available until June 7, 2024 - The Company held a conference call to review its Q1 fiscal **2024** results on **May 8, 2024**, at 2:00 p.m. Pacific Time. A live webcast and replay are available on investors.thecheesecakefactory.com until **June 7, 2024**[6](index=6&type=chunk) [Safe Harbor Statement](index=3&type=section&id=Safe%20Harbor%20Statement) Forward-looking statements are subject to risks and uncertainties; investors should consult SEC filings for full risk factor disclosure - The press release contains forward-looking statements regarding restaurant development and other non-historical facts, which are based on current expectations and involve risks and uncertainties that may cause results to differ materially[9](index=9&type=chunk) - Investors are cautioned that forward-looking statements are not guarantees of future performance and are affected by various factors including economic conditions, supply chain disruptions, operational risks, market acceptance, and regulatory changes. A full discussion of risks and uncertainties is available in the Company's SEC filings (Form 10-K, 10-Q, 8-K)[9](index=9&type=chunk)