Cheesecake Factory Meets on Revenues, Misses on EPS

Cheesecake Factory (NAS: CAKE) reported earnings on Feb. 20. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Jan. 1 (Q4), Cheesecake Factory met expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue dropped slightly. Non-GAAP earnings per share contracted. GAAP earnings per share contracted significantly.

Gross margins increased, operating margins contracted, net margins shrank.

Revenue details
Cheesecake Factory reported revenue of $464.7 million. The 23 analysts polled by S&P Capital IQ wanted to see revenue of $468.3 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.51. The 24 earnings estimates compiled by S&P Capital IQ anticipated $0.52 per share. Non-GAAP EPS of $0.51 for Q4 were 3.8% lower than the prior-year quarter's $0.53 per share. GAAP EPS of $0.40 for Q4 were 25% lower than the prior-year quarter's $0.53 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 42.9%, 70 basis points better than the prior-year quarter. Operating margin was 8.1%, 20 basis points worse than the prior-year quarter. Net margin was 4.8%, 150 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $461.0 million. On the bottom line, the average EPS estimate is $0.43.

Next year's average estimate for revenue is $1.93 billion. The average EPS estimate is $2.15.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 503 members out of 636 rating the stock outperform, and 133 members rating it underperform. Among 190 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 173 give Cheesecake Factory a green thumbs-up, and 17 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cheesecake Factory is hold, with an average price target of $35.95.

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The article Cheesecake Factory Meets on Revenues, Misses on EPS originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. TMFDisclosureHere

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