Restaurant company Cheesecake Factory (NASDAQ:CAKE) will be reporting earnings tomorrow after market close. Here’s what you need to know.
The Cheesecake Factory beat analysts’ revenue expectations by 0.9% last quarter, reporting revenues of $921 million, up 5% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and a decent beat of analysts’ EPS estimates.
Is The Cheesecake Factory a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting The Cheesecake Factory’s revenue to grow 3.9% year on year to $925.8 million, in line with the 2.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.82 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. The Cheesecake Factory has missed Wall Street’s revenue estimates five times over the last two years.
Looking at The Cheesecake Factory’s peers in the restaurants segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Darden delivered year-on-year revenue growth of 6.2%, missing analysts’ expectations by 1.7%, and Kura Sushi reported revenues up 13.3%, in line with consensus estimates. Darden traded up 6.2% following the results while Kura Sushi was also up 31.8%.
Read our full analysis of Darden’s results here and Kura Sushi’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the restaurants stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.9% on average over the last month. The Cheesecake Factory is up 4.8% during the same time and is heading into earnings with an average analyst price target of $53.12 (compared to the current share price of $51).
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