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 ...

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Have you been paying attention to shares of Cheesecake Factory (CAKE) ? Shares have been on the move with the stock up 24.9% over the past month. The stock hit a new 52-week high of $50.75 in the previous session. Cheesecake Factory has gained 41.1% since the start of the year compared to the 25.6% move for the Zacks Retail-Wholesale sector and the 6.5% return for the Zacks Retail - Restaurants industry. What's Driving the Outperformance? The stock has a great record of positive earnings surprises, as it ha ...

Revenue Growth and Financial Performance - Revenues increased 4.3% to $865.5 million for the fiscal quarter ended October 1, 2024 compared to $830.2 million for the comparable prior year period[85] - Net income increased to 3.5% of revenues in Q3 2024 from 2.2% in Q3 2023[84] - Adjusted net income for the thirteen weeks ended October 1, 2024, was $28.18 million, compared to $19.03 million for the same period in 2023[117] - The company anticipates total revenue for fiscal 2024 to be approximately $3.57 billion, with a net income margin of approximately 4.5%[112][113] - Total revenues for Q4 fiscal 2024 are expected to be between $905 million and $915 million, with a net income margin of 4.8% to 4.9%[115] - Fiscal 2025 total revenue is anticipated to be approximately $3.75 billion, with a net income margin of around 4.75% at the mid-point of the estimated revenue[116] Restaurant Operations and Expansion - The company operates 344 restaurants in the US and Canada, including 215 The Cheesecake Factory locations, 40 North Italia locations, and 35 Flower Child locations[73] - The company plans to continue expanding The Cheesecake Factory, North Italia, and Flower Child concepts, with a focus on premier locations[75] - The company targets annual unit growth of 7% across its concepts, combined with comparable sales growth[81] - The company plans to open up to 22 new restaurants in fiscal 2024, including 3 The Cheesecake Factory, 6 North Italia, 6-7 Flower Child, and 8 Other FRC locations, with anticipated cash capital expenditures of $180 to $200 million[114] - The company expects to open up to 24 new restaurants in 2025, with cash capital expenditures of $190 to $210 million[118] - Preopening costs were $7.0 million in Q3 2024, with one Flower Child and three Other FRC locations opened during the quarter[98] Cost Management and Margins - Food and beverage costs decreased to 22.6% of revenues in Q3 2024 from 23.5% in Q3 2023[84] - Labor expenses decreased to 35.9% of revenues in Q3 2024 from 36.3% in Q3 2023[84] - Food and beverage costs as a percentage of revenues decreased to 22.6% in Q3 2024 from 23.5% in Q3 2023, primarily due to menu price increases exceeding inflation[92] - Labor expenses as a percentage of revenues decreased to 35.9% in Q3 2024 from 36.3% in Q3 2023, driven by menu price increases exceeding wage rate inflation[93] - The company has implemented menu price increases above historical levels to offset inflationary cost pressures, with future pricing actions potentially remaining above historical norms[78] Sales Performance by Concept - The Cheesecake Factory sales increased 3.1% to $647.8 million in Q3 2024 compared to $628.1 million in Q3 2023, with comparable sales up 1.6% driven by a 2.4% increase in average check[86] - North Italia sales increased 15.2% to $71.9 million in Q3 2024, with comparable sales up 2% driven by a 4% increase in average check, despite a 2% decline in customer traffic[87] - Flower Child sales increased 13.7% to $36.6 million in Q3 2024, with sales per restaurant operating week up 6.5% to $85,225[89] - Other FRC sales increased 14.3% to $67.0 million in Q3 2024, despite a 4.4% decline in average sales per restaurant operating week to $116,493[90] Financial Position and Liquidity - Cash flows from operations increased by $23.8 million in the first nine months of fiscal 2024 compared to the same period in 2023, primarily due to higher net income and increased accounts payables[121] - Capital expenditures for new restaurants in the first nine months of fiscal 2024 were $76.1 million, compared to $61.6 million in the same period in 2023[122] - The company repurchased 0.5 million shares at a cost of $17.5 million in the first nine months of fiscal 2024, compared to 1.1 million shares at a cost of $36.3 million in the same period in 2023[129] - The company had net availability for borrowings of $236.5 million under the Revolver Facility as of October 1, 2024[126] - The company believes its cash and cash equivalents, combined with expected cash flows from operations and available borrowings, will provide adequate liquidity for the next 12 months and the foreseeable future[131] Commodity and Supply Chain Risks - The company is negotiating short-term and long-term agreements for principal commodities like dairy and poultry, but these efforts may not yield intended benefits for fiscal 2025[138] - A hypothetical 1% increase in food costs would negatively impact cost of sales by $2.0 million in Q3 2024 and $1.9 million in Q3 2023[139] - Commodities not under contract are subject to significant supply and cost fluctuations, especially those regulated by governments like dairy and corn[139] - International market purchases are susceptible to cost and availability fluctuations due to currency values, trade disputes, tariffs, and geopolitical unrest[139] - The company may lack the ability to adjust menu prices or items in response to food commodity price increases[139] - Operating results in fiscal 2024 continue to be impacted by supply chain challenges and increased commodity and wage inflation[137] - Climate change may exacerbate factors like labor availability, weather, and natural disasters, further impacting product and service costs[137] Financial Risks and Hedging - A hypothetical 1% rise in interest rates would increase annual interest expense by $1.3 million based on outstanding borrowings as of October 1, 2024, and January 2, 2024[140] - A hypothetical 10% decline in the market value of deferred compensation assets would reduce net income by $2.8 million as of October 1, 2024, and $2.4 million as of January 2, 2024[140] - The company has no hedging contracts in place as of October 1, 2024[138] Tax and Impairment - The effective income tax rate increased to 5.8% in Q3 2024 from -5.5% in Q3 2023, primarily due to higher forecasted income before taxes[99] - The company recorded impairment of assets and lease terminations income of $3.5 million in Q3 2024, compared to an expense of $48,000 in Q3 2023[96]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, with the aim of buying high and selling higher, capitalizing on established price movements [1] Company Summary: Cheesecake Factory (CAKE) - CAKE currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for potential outperformance in the market [3] - Over the past week, CAKE shares increased by 8.99%, significantly outperforming the Zacks Retail - Restaurants industry, which rose by only 0.49% [5] - In a longer time frame, CAKE shares have increased by 28.2% over the past quarter and 47.38% over the last year, while the S&P 500 only moved 5.48% and 36.89% respectively [6] - The average 20-day trading volume for CAKE is 1,245,898 shares, indicating a bullish sign with rising stock prices [7] - Earnings estimates for CAKE have shown positive revisions, with 9 estimates moving higher in the past two months, raising the consensus estimate from $3.21 to $3.29 [9]

Momentum investing is essentially the opposite of the tried-and-tested Wall Street adage -- "buy low and sell high." Investors following this investing style typically avoid betting on cheap stocks and waiting long for them to recover. They believe instead that one could make far more money in lesser time by "buying high and selling higher." Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth p ...

Group 1 - The Cheesecake Factory Incorporated (NASDAQ: CAKE) had two successful public trades last year, with the second trade outlined in Fall 2023 yielding over 20% returns [1] - The company promotes a blended trading and investing approach to help clients significantly grow their wealth [1] - A promotional sale is currently available, allowing new members to save 75% compared to the regular price of $1,668, with the sale ending when three more members sign up [1] Group 2 - The company offers a money-back guarantee for new clients who are not satisfied, emphasizing a commitment to client success [2] - The messaging encourages potential clients to take action and start winning in their investment endeavors [2]

The Cheesecake Factory Incorporated (NASDAQ:CAKE) Q3 2024 Earnings Call October 29, 2024 5:00 PM ET Company Participants Etienne Marcus - Vice President, Investor Relations David Overton - Chairman and Chief Executive Officer David Gordon - President Matt Clark - Executive Vice President and Chief Financial Officer Conference Call Participants Jim Salera - Stephens Drew North - Baird Catherine Griffin - Bank of America Jeff Farmer - Gordon Haskett Karen Holthouse - Citi Jim Sanderson - Northcoast Research A ...

Cheesecake Factory (CAKE) reported $865.47 million in revenue for the quarter ended September 2024, representing a year-over-year increase of 4.3%. EPS of $0.58 for the same period compares to $0.39 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $866.02 million, representing a surprise of -0.06%. The company delivered an EPS surprise of +23.40%, with the consensus EPS estimate being $0.47. While investors scrutinize revenue and earnings changes year-over-year and how they compa ...