Cheesecake Factory Beats Estimates on Top and Bottom Lines
Cheesecake Factory (NAS: CAKE) reported earnings on Feb. 21. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Jan. 3 (Q4), Cheesecake Factory beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share grew significantly.
Gross margins shrank, operating margins grew, net margins increased.
Cheesecake Factory booked revenue of $477.7 million. The 24 analysts polled by S&P Capital IQ expected to see a top line of $470.5 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $416.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.53. The 25 earnings estimates compiled by S&P Capital IQ predicted $0.52 per share on the same basis. GAAP EPS of $0.54 for Q4 were 50% higher than the prior-year quarter's $0.36 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 42.2%, 70 basis points worse than the prior-year quarter. Operating margin was 8.3%, 90 basis points better than the prior-year quarter. Net margin was 6.3%, 110 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $442.6 million. On the bottom line, the average EPS estimate is $0.36.
Next year's average estimate for revenue is $1.83 billion. The average EPS estimate is $1.84.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 504 members out of 642 rating the stock outperform, and 138 members rating it underperform. Among 203 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 179 give Cheesecake Factory a green thumbs-up, and 24 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cheesecake Factory is outperform, with an average price target of $31.10.
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At the time this article was published 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. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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