Comp Growth to Aid Cheesecake Factory's (CAKE) Q2 Earnings
The Cheesecake Factory Incorporated CAKE is scheduled to report second-quarter 2023 results on Aug 2. The company’s second-quarter results are likely to gain from robust comparable restaurant sales. CAKE has exhibited a decent performance in the past year, with the stock rising 28.5% and outperforming the Zacks Restaurant industry’s 13.2% growth.
Solid Comps Growth to Continue in Q2
Cheesecake Factory is committed to bolstering sales to stay afloat in the competitive environment. Notably, menu innovation and advanced digital capabilities are the primary fortes of the company. Management is also focusing on rewards program and leverages data analytics to boost guest engagement and incremental sales.
Solid comparable restaurant sales have impressed investors in the last few quarters and the trend is likely to have continued in second-quarter 2023. CAKE is benefiting from increased average check and customer traffic.
In order to boost consumer convenience, management has implemented operational changes and technology upgrades, which include a contactless menu and payment technology, and text paging. We believe that a boost in customer count coupled with targeted off-premise marketing are likely to aid CAKE’s results.
Our model predicts Cheesecake Factory and North Italia same-store sales to grow 3.4% and 7.5% year over year, respectively. We expect Cheesecake Factory customer traffic and menu pricing to increase 1.6% and 6% year over year, respectively.
Click here to know how the company’s overall second-quarter performance is expected to be.
Overall Q2 Earnings & Revenue Expectations
The Zacks Consensus Estimate for earnings is pegged at 81 cents per share, indicating a 55.8% increase from the year-ago figure of 52 cents. The consensus mark for revenues is pegged at $881.4 million, suggesting 5.9% year-over-year growth.
Cheesecake Factory currently has a Zacks rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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A Few Recent Restaurant Releases
Domino's Pizza, Inc. DPZ reported mixed second-quarter fiscal 2023 results, with earnings surpassing the Zacks Consensus Estimate and revenues missing. DPZ reported adjusted earnings per share (EPS) of $3.08, beating the Zacks Consensus Estimate of $3.04. The figure increased 9.2% from $2.82 reported in the prior-year quarter.
Revenues of $1,024.6 million missed the consensus mark of $1,065 million. Moreover, the top line declined 3.8% on a year-over-year basis. The downside can be attributed to lower supply-chain revenues (owing to a decline in market basket pricing) and lower order volumes.
Chipotle Mexican Grill, Inc. CMG released mixed second-quarter fiscal 2023 results, with earnings outshining the Zacks Consensus Estimate and revenues lagging. Chipotle reported adjusted EPS of $12.65, beating the Zacks Consensus Estimate of $12.25. The bottom line jumped 36% from $9.30 reported in the year-ago quarter.
Quarterly revenues of $2,514.8 million missed the consensus mark of $2,524 million. However, the top line increased 13.6% on a year-over-year basis. The upside can primarily be attributed to strong comparable restaurant sales growth and new restaurant openings. In the quarter under review, CMG opened 47 new restaurants.
BJ's Restaurants, Inc. BJRI reported mixed second-quarter fiscal 2023 (ended Jul 4, 2023) results, with earnings outpacing the Zacks Consensus Estimate and revenues missing. The top and bottom lines increased on a year-over-year basis.
BJRI reported adjusted EPS of 50 cents, surpassing the Zacks Consensus Estimate of 32 cents. In the prior-year quarter, it reported adjusted EPS of 10 cents. Total revenues of $349.7 million missed the Zacks Consensus Estimate of $350 million. Nonetheless, the top line increased 6.1% on a year-over-year basis.
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The Cheesecake Factory Incorporated (CAKE) : Free Stock Analysis Report
