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Cheesecake Factory Earnings Leave Sweet Taste, But Analyst Sees Tariff Trouble Brewing

Core Viewpoint - The Cheesecake Factory Incorporated reported strong first-quarter revenues but revised its outlook due to economic concerns and tariff-related uncertainties [1][2]. Financial Performance - First-quarter revenues reached $927.2 million, an increase from $891.2 million year-over-year [1]. - Adjusted EBITDA forecast for 2025 was lowered from $323.5 million to $317.6 million, and adjusted EPS was revised from $3.72 to $3.68 [4]. - For 2026, EBITDA estimate was reduced from $348.8 million to $343.3 million, and adjusted EPS was trimmed from $4.14 to $4.09 [5]. Market Position and Trends - The company maintains a strong foundation of steady consumer demand, supported by a broad menu appealing to a wide range of guests [4]. - Positive trends include gradually improving same-store sales, year-over-year margin expansion, and increased unit growth, positioning shares for continued momentum through fiscal 2025 [3]. - The company plans a summer menu update to reinforce a value-focused trend as customers favor lower-priced items and non-alcoholic beverages [5]. Stock Performance - CAKE shares are currently trading lower by 3.82% at $48.45 [5].