Have you been paying attention to shares of Cheesecake Factory (CAKE) ? Shares have been on the move with the stock up 11.9% over the past month. The stock hit a new 52-week high of $53.46 in the previous session. Cheesecake Factory has gained 11.9% since the start of the year compared to the 37.2% move for the Zacks Retail-Wholesale sector and the 6.2% return for the Zacks Retail - Restaurants industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn ...

Investors interested in Retail - Restaurants stocks are likely familiar with Cheesecake Factory (CAKE) and Chipotle Mexican Grill (CMG) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on ...

Industry Overview - The restaurant industry in Q4 2024 is expected to benefit from increased sales driven by rapid menu price hikes, average check growth, and expansion efforts [1] - Quick-service restaurant brands have shown remarkable stability and resilience in traffic and sales, attributed to price-conscious consumers supporting steady earnings [2] - The industry is experiencing growth in off-premise sales, including delivery, takeout, and drive-thru options, with many operators testing ghost or virtual kitchens [3] Company Performance - Restaurant operators are partnering with delivery channels and digital platforms to drive incremental sales, with collaborations with DoorDash, Grubhub, and others contributing to growth [4] - Despite growth opportunities, restaurant operators face high operational costs, including increased pre-opening and marketing expenses, which are affecting margins [5] Specific Company Insights - Brinker International, Inc. (EAT) is expected to report increased revenues in Q2 fiscal 2025, driven by effective marketing, improved menu pricing, and higher traffic, with an Earnings ESP of +9.99% [8][9] - Chipotle Mexican Grill, Inc. (CMG) is likely to benefit from digital efforts and new restaurant openings, with an Earnings ESP of +1.00% and a consensus estimate suggesting a 14.3% earnings growth [10][11] - The Cheesecake Factory Incorporated (CAKE) is projected to see earnings and revenue growth in Q4 2024, supported by service digitization and new menu offerings, with an Earnings ESP of +2.20% [12][13] - Wingstop Inc. (WING) is expected to report growth driven by comps growth and technological initiatives, with an Earnings ESP of +2.18% [13][14] - Shake Shack Inc. (SHAK) is likely to report increased earnings and revenues, benefiting from same-shack sales and digital initiatives, with an Earnings ESP of +0.65% [15][16]

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Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Cheesecake Factory (CAKE) , which belongs to the Zacks Retail - Restaurants industry.This restaurant chain has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 16.20%.For the last reported quarter, Cheesecake Factory came out with earni ...

As we navigate through an initially rocky start to 2025, I continue to keep my eyes peeled for growth stocks that still have room from a valuation standpoint to rise higher. In the restaurant industry, much of 2024 was dominated by the roughlyWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular ...

Core Insights - The Cheesecake Factory has seen a 20.7% increase in shares over the past three months, contrasting with a 0.9% decline in the industry, driven by strong comparable sales performance, expansion efforts, and rewards programs [1] Financial Performance - In the fiscal third quarter of 2024, comparable sales at Cheesecake Factory restaurants increased by 1.6% year over year, down from a 2.4% rise in the same quarter the previous year [2] - The company reported labor expenses of $949.2 million for the first nine months of fiscal 2024, an increase from $919.3 million in the prior-year period [5] Growth Strategy - The company plans to open 22 new restaurants in fiscal 2024, with eight openings scheduled for the fourth quarter, including three Cheesecake Factory locations and six North Italia restaurants [3] - The Cheesecake Rewards program has shown high levels of member activity and engagement, contributing positively to customer visits and brand growth [4] Cost Management - Increased costs remain a concern, with pre-opening costs, higher labor expenses, and additional cleaning costs expected to impact profits [5] - For the fourth quarter of fiscal 2024, the company anticipates commodity inflation in the low-single digits and net total labor inflation in the mid-single digits [12] Operational Enhancements - The company has implemented operational and supply chain improvements, including a kitchen display system and a new loyalty platform, aimed at enhancing guest experience and driving cost efficiencies [11]

Group 1: Mall Industry Trends - U.S. shopping malls have seen a significant decline from 2,500 in the 1980s to approximately 700 today, largely due to the rise of online shopping and the decline of department stores [2] - Despite predictions of their demise, many Gen Z consumers prefer in-person shopping experiences, leading to a resurgence in mall popularity [3] - Developers are creatively repurposing empty department stores into housing and increasing the space allocated to restaurants and bars, which are now major attractions [3][6] Group 2: Shift in Consumer Behavior - The traditional shopping experience has shifted, with dining options now driving foot traffic to malls rather than shopping itself [4] - Yelp's report indicates that 17 of the 25 most popular mall brands are restaurants, highlighting the growing importance of food in the mall experience [4] - Restaurants now account for 20% to 30% of the total leasing area in some malls, a significant increase from 5% to 10% a decade ago [5][6] Group 3: Restaurant Dynamics - Malls are increasingly featuring upscale dining options, with a focus on "contemporary casual" restaurants that offer a higher quality experience [9] - The pandemic has made malls more attractive to restaurateurs, as foot traffic in suburban malls has rebounded above pre-pandemic levels [11] - Emerging restaurant chains are capitalizing on mall locations for rapid expansion, with examples like Din Tai Fung planning new openings in malls [12][13] Group 4: Food Halls vs. Food Courts - Food halls are becoming a popular alternative to traditional food courts, offering a more upscale dining experience with local vendors [15][16] - Eataly, a notable example, has successfully integrated into malls, providing a unique cultural experience alongside dining options [18][19] - Despite the rise of food halls, traditional food courts still perform well, with chains like Chick-fil-A showing strong sales [20] Group 5: Performance of Key Restaurant Brands - The Cheesecake Factory remains a top-performing mall brand, with shares rising 43% this year, outperforming the S&P 500 [24] - The chain has managed to avoid bankruptcy, unlike other mall staples, and is seen as a valuable tenant for mall landlords [25][26][27] - The presence of The Cheesecake Factory in malls correlates with better financial performance for those malls, as indicated by a Moody's Analytics report [26][27]

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It has been about a month since the last earnings report for Cheesecake Factory (CAKE) . Shares have added about 6.7% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Cheesecake Factory due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Cheesecake Factory Q3 Earnings ...