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 ...

Cheesecake Factory (CAKE) came out with quarterly earnings of $0.58 per share, beating the Zacks Consensus Estimate of $0.47 per share. This compares to earnings of $0.39 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 23.40%. A quarter ago, it was expected that this restaurant chain would post earnings of $1 per share when it actually produced earnings of $1.09, delivering a surprise of 9%. Over the last four quarters, the c ...

[Financial Highlights and Business Overview](index=1&type=section&id=Financial%20Highlights%20and%20Business%20Overview) [Third Quarter 2024 Financial Performance](index=1&type=section&id=Third%20Quarter%202024%20Financial%20Performance) The Cheesecake Factory achieved its fourth consecutive quarter of year-over-year growth in Q3 2024, with revenues and net income increasing Q3 Fiscal 2024 Key Financial Results | Financial Metric | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Total Revenues | $865.5 million | $830.2 million | | Net Income (GAAP) | $30.0 million | $17.9 million | | Diluted EPS (GAAP) | $0.61 | $0.37 | | Adjusted Net Income | $28.2 million | $19.0 million | | Adjusted Diluted EPS | $0.58 | $0.39 | - Comparable restaurant sales at The Cheesecake Factory restaurants increased by **1.6%** year-over-year in the third quarter of fiscal 2024[4](index=4&type=chunk) - The company recorded a pre-tax net income of **$2.5 million** from impairment of assets, lease termination income, and FRC acquisition-related expenses, resulting in an adjusted net income of **$28.2 million**[3](index=3&type=chunk) [Operational Highlights and Management Commentary](index=1&type=section&id=Operational%20Highlights%20and%20Management%20Commentary) Management highlighted strong operational execution and market share gains, driven by improved productivity, retention, and successful new restaurant openings - The company is capturing market share, evidenced by strong outperformance in comparable sales and traffic at The Cheesecake Factory restaurants compared to the broader casual dining industry[5](index=5&type=chunk) - Restaurant operations showed exceptional execution with significant improvements in labor productivity, hourly staff and manager retention, and guest satisfaction scores[5](index=5&type=chunk) - A total of **17** new restaurants have opened year-to-date, reinforcing confidence in achieving near-term and long-term development objectives[5](index=5&type=chunk) [Operational and Corporate Updates](index=2&type=section&id=Operational%20and%20Corporate%20Updates) [Restaurant Development](index=2&type=section&id=Development) The company continued its expansion, opening four new restaurants in Q3 and three post-quarter, targeting up to 22 new locations in fiscal 2024 - In Q3 2024, the company opened **four** new restaurants: one Flower Child and three other FRC locations[6](index=6&type=chunk) - Subsequent to the quarter-end, **three** additional restaurants were opened: one North Italia, one Flower Child, and one Blanco[6](index=6&type=chunk) - The company expects to open as many as **22** new restaurants in fiscal 2024, including up to **three** The Cheesecake Factory, **six** North Italia, and **six to seven** Flower Child locations[7](index=7&type=chunk) [Liquidity and Capital Allocation](index=2&type=section&id=Liquidity%20and%20Capital%20Allocation) As of October 1, 2024, the company maintained strong liquidity with $288.7 million available, alongside stock repurchases and dividend declarations Liquidity and Debt as of October 1, 2024 | Metric | Amount | | :--- | :--- | | Total Available Liquidity | $288.7 million | | Cash Balance | $52.2 million | | Revolving Credit Facility Availability | $236.5 million | | Total Principal Debt Outstanding | $475 million | - Repurchased approximately **29,450 shares** of stock for **$1.1 million** in Q3 2024[9](index=9&type=chunk) - The Board of Directors declared a quarterly dividend of **$0.27 per share**, payable on November 26, 2024[9](index=9&type=chunk) [Financial Statements](index=3&type=section&id=Financial%20Statements) [Condensed Consolidated Financial Statements](index=3&type=section&id=Condensed%20Consolidated%20Financial%20Statements) The condensed consolidated income statement for Q3 2024 shows significant year-over-year increases in revenues, income from operations, and net income Consolidated Income Statement Highlights (Q3 2024 vs Q3 2023, in millions) | Metric (13 Weeks Ended) | Oct 1, 2024 | Oct 3, 2023 | | :--- | :--- | :--- | | Revenues | $865.5 M | $830.2 M | | Income from Operations | $33.7 M | $19.0 M | | Net Income | $30.0 M | $17.9 M | | Diluted Net Income per Share | $0.61 | $0.37 | Consolidated Income Statement Highlights (39 Weeks Ended, in millions) | Metric (39 Weeks Ended) | Oct 1, 2024 | Oct 3, 2023 | | :--- | :--- | :--- | | Revenues | $2,660.7 M | $2,562.5 M | | Income from Operations | $131.7 M | $100.4 M | | Net Income | $115.6 M | $88.7 M | | Diluted Net Income per Share | $2.37 | $1.80 | [Selected Segment Information](index=5&type=section&id=Selected%20Segment%20Information) Segment data for Q3 2024 highlights The Cheesecake Factory as the primary revenue and profit driver, with North Italia also showing strong growth Segment Revenues (13 Weeks Ended Oct 1, 2024 vs Oct 3, 2023, in millions) | Segment | Q3 2024 Revenue | Q3 2023 Revenue | | :--- | :--- | :--- | | The Cheesecake Factory | $647.8 M | $628.1 M | | North Italia | $71.9 M | $62.4 M | | Other FRC | $67.0 M | $58.6 M | | Other | $78.9 M | $81.0 M | Segment Income from Operations (13 Weeks Ended Oct 1, 2024 vs Oct 3, 2023, in millions) | Segment | Q3 2024 Income | Q3 2023 Income | | :--- | :--- | :--- | | The Cheesecake Factory | $87.8 M | $67.6 M | | North Italia | $4.4 M | $4.1 M | | Other FRC | ($1.4 M) | $1.0 M | - At the end of the period, the company had **215** The Cheesecake Factory restaurants, **39** North Italia restaurants, and a total of **341** company-owned restaurants[17](index=17&type=chunk)[18](index=18&type=chunk) [Reconciliation of Non-GAAP Results to GAAP Results](index=7&type=section&id=Reconciliation%20of%20Non-GAAP%20Results%20to%20GAAP%20Results) The company reconciled GAAP to non-GAAP results for Q3 2024, adjusting net income and diluted EPS to exclude non-recurring items Q3 2024 Reconciliation of GAAP to Non-GAAP Net Income | Description | Amount (in thousands) | | :--- | :--- | | Net income (GAAP) | $29,994 | | Impairment/lease termination (income) | ($3,472) | | Acquisition-related expenses | $1,020 | | Tax effect of adjustments | $638 | | **Adjusted net income (non-GAAP)** | **$28,180** | Q3 2024 Reconciliation of GAAP to Non-GAAP Diluted EPS | Description | Amount per Share | | :--- | :--- | | Diluted net income per share (GAAP) | $0.61 | | Impairment/lease termination (income) | ($0.07) | | Acquisition-related expenses | $0.02 | | Tax effect of adjustments | $0.01 | | **Adjusted net income per share (non-GAAP)** | **$0.58** |

Core Insights - Steady growth and a safe dividend are essential for dividend investors [1] Company Overview - The discussion focuses on Cheesecake Factory (CAKE) as a potential dividend stock [1] Investment Considerations - The video aims to evaluate whether Cheesecake Factory is a good investment for dividend seekers [1]

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Cheesecake Factory (CAKE) . This company, which is in the Zacks Retail - Restaurants industry, shows potential for another earnings beat. 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 qu ...

Cheesecake Factory (CAKE) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the s ...

Core Insights - Investors in the Retail - Restaurants sector should consider Cheesecake Factory (CAKE) and Compass Group PLC (CMPGY) for potential value opportunities [1] - CAKE has a stronger Zacks Rank of 2 (Buy) compared to CMPGY's Zacks Rank of 3 (Hold), indicating a better earnings outlook for CAKE [1] Valuation Metrics - CAKE has a forward P/E ratio of 13.08, significantly lower than CMPGY's forward P/E of 24.39, suggesting CAKE is undervalued [2] - The PEG ratio for CAKE is 1.21, while CMPGY's PEG ratio is 1.97, indicating CAKE's expected earnings growth is more favorable [2] - CAKE's P/B ratio stands at 5.73, compared to CMPGY's P/B of 8.60, further supporting CAKE's valuation advantage [3] Value Grades - Based on the analysis of various valuation metrics, CAKE receives a Value grade of A, while CMPGY is rated C, highlighting CAKE as the superior value option [3]

Core Viewpoint - The Cheesecake Factory (CAKE) is currently considered a strong value stock, with favorable valuation metrics indicating it may be undervalued compared to its industry peers [2][4]. Valuation Metrics - CAKE holds a Zacks Rank of 2 (Buy) and a Value grade of A, with a P/E ratio of 12.16, significantly lower than the industry average of 25.67 [2]. - The stock's Forward P/E has fluctuated between 9.89 and 13.36 over the past 12 months, with a median of 11.28 [2]. - CAKE has a PEG ratio of 1.12, compared to the industry average of 1.77, with its PEG ratio ranging from 0.46 to 1.23 in the past year [2]. - The P/S ratio for CAKE is 0.61, lower than the industry average of 0.88, indicating better performance relative to sales [3]. - CAKE's P/CF ratio stands at 9.73, which is attractive compared to the industry's average of 22.57, with a range of 7.85 to 9.91 over the past 52 weeks [3]. Investment Outlook - The combination of these metrics suggests that The Cheesecake Factory is likely undervalued, making it one of the strongest value stocks in the market based on its earnings outlook [4].