Cheesecake Factory (CAKE) Tops Q3 Earnings Estimates

Core Insights - Cheesecake Factory reported quarterly earnings of $0.68 per share, exceeding the Zacks Consensus Estimate of $0.60 per share, and showing an increase from $0.58 per share a year ago, resulting in an earnings surprise of +13.33% [1] - The company generated revenues of $907.23 million for the quarter ended September 2025, which was slightly below the Zacks Consensus Estimate by 0.63%, but an increase from $865.47 million year-over-year [2] - Cheesecake Factory's stock has increased approximately 17.9% year-to-date, outperforming the S&P 500's gain of 16.9% [3] Earnings Outlook - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the next quarter is $1.11 on revenues of $969.08 million, and for the current fiscal year, it is $3.77 on revenues of $3.76 billion [7] Industry Context - The Retail - Restaurants industry, to which Cheesecake Factory belongs, is currently ranked in the bottom 11% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Cheesecake Factory's stock may be influenced by the overall outlook for the industry, as historical data shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8] Estimate Revisions - Prior to the earnings release, the estimate revisions trend for Cheesecake Factory was mixed, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market in the near future [6] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]