Why Cheesecake Factory (CAKE) Could Beat Earnings Estimates Again

Core Viewpoint - Cheesecake Factory (CAKE) is positioned well to potentially beat earnings estimates in its upcoming quarterly report, continuing its history of exceeding expectations in the Zacks Retail - Restaurants industry [1]. Earnings Performance - The company has a strong track record of surpassing earnings estimates, with an average surprise of 12.44% over the last two quarters [2]. - In the most recent quarter, Cheesecake Factory reported earnings of $1.09 per share, exceeding the expected $1 per share by 9% [2]. - For the previous quarter, the actual earnings were $0.73 per share against a consensus estimate of $0.63 per share, resulting in a surprise of 15.87% [2]. Earnings Estimates - Recent changes in earnings estimates for Cheesecake Factory have been favorable, with a positive Zacks Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [3][6]. - The current Earnings ESP for Cheesecake Factory is +5.32%, suggesting that analysts have recently become more optimistic about the company's earnings prospects [6]. Predictive Power of Earnings ESP - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [4]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [5]. Upcoming Earnings Report - The next earnings report for Cheesecake Factory is expected to be released on October 29, 2024 [6].