McDonald's-Restaurant Earnings Roundup: MCD, CAKE, TXRH

Core Insights - The 2024 Q4 earnings cycle is showing signs of slowing down, with most S&P 500 companies having reported positive earnings growth and favorable commentary [1] McDonald's (MCD) - MCD reported EPS that met consensus estimates but sales of $6.4 billion fell 0.3% year-over-year, with EPS down 4% year-over-year [3][4] - U.S. comparable sales decreased by 2% year-over-year, indicating consumer caution due to ongoing menu price increases [4] - Global comparable sales increased by 0.4% year-over-year, marking a positive shift after a series of negative surprises [5] Cheesecake Factory (CAKE) - Analysts expect CAKE to report an EPS of$ 0.92, reflecting a 15% year-over-year growth, with sales anticipated to grow by 4% year-over-year [6] - Comparable restaurant sales increased by 1.4% year-over-year, exceeding consensus expectations [7] - CEO David Everton highlighted market share capture and improvements in labor productivity and guest satisfaction [9] Texas Roadhouse (TXRH) - TXRH is projected to see a significant 53% EPS growth alongside a 21% increase in sales, although analyst revisions have remained stagnant [10] - The company reported an 8.5% year-over-year growth in comparable sales, with plans for further expansion through 2025 [13] - TXRH's strong momentum has led to a bullish outlook from analysts, contributing to a Zacks Rank 2 (Buy) [13] Summary of Expectations - Both CAKE and TXRH are expected to report favorable comparable store sales, which will be crucial in assessing their growth [16]