Core Insights - Cheesecake Factory (CAKE) is expected to report quarterly earnings of $0.63 per share, a 3.3% increase year-over-year, with revenues projected at $888.27 million, reflecting a 2.6% year-over-year growth [1] - The consensus EPS estimate has been adjusted downward by 0.3% over the past 30 days, indicating a reassessment by analysts [1] Revenue Estimates - Revenues from North Italia are expected to be $69.76 million, representing a 10.2% increase from the prior year [2] - Revenues from The Cheesecake Factory restaurants are forecasted to reach $665.10 million, suggesting a 1.4% year-over-year increase [2] - Revenues from Other segments are estimated at $77.24 million, indicating a 1.2% decrease year-over-year [2] - Revenues from Other FRC are projected to be $76.75 million, reflecting an 11.8% year-over-year increase [3] Comparable Restaurant Sales - Comparable restaurant sales for The Cheesecake Factory are estimated to decline by 0.9%, contrasting with a 5.7% increase from the previous year [3] - Comparable restaurant sales for North Italia are expected to be 2.7%, down from 9% in the prior year [4] Number of Restaurants - The number of company-owned restaurants for The Cheesecake Factory is projected to be 216, up from 210 year-over-year [3] - The total number of company-owned restaurants is estimated at 338, compared to 318 in the previous year [3] - The number of company-owned restaurants for North Italia is expected to reach 37, up from 33 year-over-year [3] - The number of company-owned restaurants for Other FRC is projected at 41, compared to 35 in the prior year [4] - The number of company-owned restaurants for Other is expected to remain at 40, consistent with the previous year's figure [4] Stock Performance - Over the past month, shares of Cheesecake Factory have returned +0.4%, while the Zacks S&P 500 composite has seen a -0.4% change [4] - Currently, CAKE holds a Zacks Rank 3 (Hold), indicating that its performance may align with the overall market in the near future [4]

Company Overview - Cheesecake Factory (CAKE) is expected to report a year-over-year increase in earnings, with a projected EPS of $0.63, reflecting a change of +3.3% [2] - Revenues are anticipated to reach $888.27 million, which is a 2.6% increase from the previous year [2] Earnings Estimates and Revisions - The consensus EPS estimate has been revised down by 0.4% over the last 30 days, indicating a reassessment by analysts [2] - The Most Accurate Estimate for Cheesecake Factory is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +0.27% [4] Earnings Surprise Prediction - A positive Earnings ESP is a strong indicator of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [4] - Cheesecake Factory currently holds a Zacks Rank of 3, suggesting a likelihood of beating the consensus EPS estimate [5][6] Historical Performance - In the last reported quarter, Cheesecake Factory exceeded the expected EPS of $0.74 by delivering $0.80, resulting in a surprise of +8.11% [7] - Over the past four quarters, the company has beaten consensus EPS estimates three times [7] Industry Context - In the broader Zacks Retail - Restaurants industry, Portillo's Inc. is also expected to report earnings, with an EPS estimate of $0.05, indicating no change from the previous year [9] - Portillo's Inc. has an Earnings ESP of 4.76% and a Zacks Rank of 3, suggesting a potential earnings beat as well [9]

Core Insights - Zacks Premium offers tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Style Scores [1][4] - The Zacks Style Scores categorize stocks based on value, growth, and momentum, providing ratings from A to F to indicate potential performance [2][3] Zacks Style Scores - **Value Score**: Identifies attractive stocks using ratios like P/E and Price/Sales, focusing on undervalued stocks [2] - **Growth Score**: Evaluates a company's financial health and future outlook, highlighting stocks with sustainable growth [2] - **Momentum Score**: Assesses trends in stock prices and earnings estimates to identify high-momentum stocks [2] - **VGM Score**: Combines the three Style Scores to find stocks with the best overall value, growth, and momentum [3] Zacks Rank - The Zacks Rank is a proprietary model based on earnings estimate revisions, with 1 (Strong Buy) stocks historically returning an average of +25.41% annually since 1988, outperforming the S&P 500 [4] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [5] Company Spotlight: Cheesecake Factory (CAKE) - As of January 2, 2024, Cheesecake Factory operates 334 restaurants in the U.S. and Canada, including various brands [6] - CAKE holds a Zacks Rank of 3 (Hold) and a VGM Score of A, indicating potential for growth [6] - The company is projected to achieve year-over-year earnings growth of 14.5% for the current fiscal year, with a Zacks Consensus Estimate of $3.08 per share [6] - Recent analyst revisions have positively impacted earnings estimates, with an average earnings surprise of 3.3% [6]

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.Zacks Premium also includes the Zacks Style Scores.What a ...

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.The research service features 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, all of which will help you become a smarter, more confident investor.It also includes access to the Zacks Style Scores.What are the Zacks Style Scores?Developed a ...

Core Insights - Zacks Premium offers tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Style Scores [1][4] - The Zacks Style Scores categorize stocks into Value, Growth, Momentum, and VGM Scores, helping investors identify stocks with the potential to outperform the market [2][3] Zacks Style Scores - **Value Score**: Focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [2] - **Growth Score**: Analyzes projected earnings and sales to find stocks with sustainable growth potential [2] - **Momentum Score**: Utilizes price trends and earnings estimate changes to identify high-momentum stocks [2] - **VGM Score**: Combines Value, Growth, and Momentum Scores to highlight stocks with the best overall potential [3] Zacks Rank - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investment decisions, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988 [4] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [5] Company Spotlight: Cheesecake Factory (CAKE) - As of October 3, 2023, Cheesecake Factory operates 325 restaurants in the U.S. and Canada, including various brands [6] - CAKE holds a Zacks Rank of 3 (Hold) and a VGM Score of A, indicating solid performance potential [6] - The company is projected to achieve year-over-year earnings growth of 13.4% for the current fiscal year, with upward revisions from six analysts [6]

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.The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.It also includes access to the Zacks Style Scores.What are the Zacks Style Scores?Developed alongsi ...

The Cheesecake Factory Incorporated (CAKE) reported mixed fourth-quarter fiscal 2023 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top line fell year over year, while 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 80 cents, beating the Zacks Consensus Estimate of 74 cents by 8.1%. In the year-ago period, the company reported adju ...

Financial Data and Key Metrics Changes - The company reported fourth quarter revenues of $877 million, with comparable sales at Cheesecake Factory restaurants up 2.5% year-over-year and 14% compared to 2019, outperforming the casual dining industry [7][10] - Adjusted net income margin for the fourth quarter was 4.5%, exceeding the guidance of 4.25% [10] - Total revenues for the fiscal year reached $3.44 billion, a 6.7% increase over 2022 after excluding the impact of an additional week in fiscal 2022 [10][11] - Fourth quarter GAAP diluted net income per share was $0.26, while adjusted diluted net income per share was $0.80 [14] Business Line Data and Key Metrics Changes - Total sales at Cheesecake Factory restaurants were $658 million, with comparable sales increasing 2.5% year-over-year and 14% compared to 2019 [11] - North Italia reported total sales of $67.2 million, with fourth quarter comparable sales increasing 7% from the prior year and 34% versus 2019 [12] - Other FRC sales totaled $70.9 million, while Flower Child sales were $30.4 million [12] Market Data and Key Metrics Changes - Off-premise sales accounted for 22% of total sales in the fourth quarter, consistent with the full year percentage [12] - The company experienced stability in on-premise incident rates, remaining above 2019 levels [11] Company Strategy and Development Direction - The company plans to open as many as 22 new restaurants in 2024, including 3 to 4 Cheesecake Factory locations and 6 to 7 each of North Italia, Flower Child, and FRC restaurants [9][19] - The focus remains on leveraging competitive strengths, differentiated brands, and best-in-class operators to drive shareholder value and market share gains [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's health, citing stabilizing top-line trends, improving profit margins, and normalizing input costs [20] - For Q1 2024, total revenues are anticipated to be between $875 million and $895 million, assuming no material operating or consumer disruptions [16] - The company expects full year revenues for fiscal 2024 to be approximately $3.6 billion, with a net income margin of about 4.25% [19] Other Important Information - The company ended the quarter with total available liquidity of approximately $293 million, including a cash balance of about $56 million [14] - The Cheesecake rewards program is seeing early demand exceeding internal expectations, with a focus on member engagement and acquisition tactics [15] Q&A Session Summary Question: Can you comment on the updated annual guidance compared to last quarter? - Management indicated that nothing has changed fundamentally, and the guidance reflects a prudent approach considering recent weather trends [22][23] Question: Can you elaborate on labor productivity and potential improvements for 2024? - Management noted improvements in labor productivity due to better retention and stability in the labor environment, which is expected to continue into 2024 [25][26] Question: How is the Cheesecake Factory business performing in terms of check and traffic components? - Traffic was flat in Q4, representing a 1% improvement over Q3, with pricing coming down as the company exited one-time pricing from the previous year [30] Question: What are the expectations for restaurant margins in 2024? - Management expects to expand restaurant level margins by 50 to 75 basis points in 2024, driven by productivity and efficiency gains [39] Question: How is the company addressing the impact of the California FAST Act legislation? - Management stated that the impact is still uncertain, but they believe they have sufficient pricing power to defend margins in California [44][45] Question: Can you provide insights on the unit growth plan for 2024? - The company plans to open 22 new restaurants, with some relocations factored into the growth plan [58][59]

For the quarter ended December 2023, Cheesecake Factory (CAKE) reported revenue of $877.01 million, down 1.8% over the same period last year. EPS came in at $0.80, compared to $0.56 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $877.31 million, representing a surprise of -0.03%. The company delivered an EPS surprise of +8.11%, with the consensus EPS estimate being $0.74.While investors scrutinize revenue and earnings changes year-over-year and how they compare with ...