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The Cheesecake Factory Incorporated (CAKE - Free Report) reported impressive first-quarter fiscal 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased from the prior-year quarter’s figure.
Earnings & Revenue Discussion
In the quarter under review, the company reported adjusted earnings per share (EPS) of 73 cents, beating the Zacks Consensus Estimate of 63 cents by 15.9%. In the year-ago period, the company reported adjusted EPS of 61 cents.
Quarterly revenues of $891.2 million beat the consensus estimate of $888 million by 0.3%. The top line increased 2.9% on a year-over-year basis. The upside was backed by strong consumer demand and traffic.
The Cheesecake Factory Incorporated Price, Consensus and EPS Surprise
In the reported quarter, comps at Cheesecake Factory restaurants dropped 0.6% year over year against growth of 5.7% reported in the prior-year quarter. We projected comps to decline 0.4% year over year.
North Italia comps rose 3% year over year compared with 9% growth reported in the year-ago quarter. Our model suggested the metric to rise 0.7% year over year.
Costs in Detail
The cost of food and beverage, as a percentage of revenues, declined 100 basis points (bps) year over year to 22.8% in the fiscal first quarter.
Labor expenses, as a percentage of total revenues, amounted to 36%, flat year over year. We expected the metric to be 36.2% of revenues in the quarter.
Other operating costs, as a percentage of total revenues, were 26.3%, down 40 bps from the prior-year quarter’s level. In the quarter, we anticipated the metric to be 26.8% of revenues.
General and administrative expenses accounted for 6.8% of revenues, up 60 bps year over year. Our model predicted the metric to be 6.4% of revenues in the fiscal first quarter.
In the fiscal first quarter, pre-opening expenses accounted for 0.6% of revenues, up 30 bps year over year.
Balance Sheet
As of Apr 2, 2024, Cheesecake Factory’s cash and cash equivalents totaled $60.2 million compared with $56.3 million as of Jan 2, 2024. Long-term debt (net of issuance costs) was $470.6 million compared with $470 million in the prior quarter. As of Apr 2, the company had a total available liquidity of $296.7 million.
Management declared a quarterly cash dividend of 27 cents per share. The dividend will be payable on Jun 4 to shareholders of record as of May 22, 2024. In the fiscal first quarter, CAKE repurchased approximately 359,400 shares for $12.5 million.
Store Developments
In the quarter under review, Cheesecake Factory opened five new restaurants. The openings included two North Italia restaurants, two FRC restaurants and one Flower Child location. Internationally, the company opened a Cheesecake Factory restaurant under licensing agreements in Mexico. Subsequent to the quarter-end, the company opened one Cheesecake Factory restaurant internationally under a licensing agreement in Asia.
In the fiscal 2024, the management expects to open 22 new restaurants. This includes three to four Cheesecake factories, six to seven North Italia's, six to seven Flower Child and six to seven FRC restaurants.
Zacks Rank
Cheesecake Factory currently has a Zacks Rank #4 (Sell).
Yum China Holdings, Inc. (YUMC - Free Report) reported impressive first-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis. The upside can be attributed to robust total system sales growth and new unit contribution.
During the quarter, YUMC reported adjusted EPS of 71 cents, beating the Zacks Consensus Estimate of 66 cents. The bottom line moved up 2.9% from 69 cents reported a year ago.
Quarterly revenues of $2.96 billion outpaced the consensus mark of $2.94 billion. The top line inched up 1% on a year-over-year basis. Excluding foreign currency translation, revenues increased 7% year over year.
Chipotle Mexican Grill, Inc. (CMG - Free Report) released stellar first-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis. During the quarter, the company reported benefits from enhanced throughput and effective marketing initiatives like Braised Beef Barbacoa and Chicken Al Pastor, leading to strong sales and transaction growth. The company stated that the momentum continued into April.
During the quarter, CMG reported adjusted EPS of $13.37, outpacing the Zacks Consensus Estimate of $11.63. The bottom line increased 27.3% from $10.50 reported in the year-ago quarter.
Quarterly revenues of $2.7 billion surpassed the consensus mark of $2.68 billion by 1%. The top line rose 14.1% on a year-over-year basis on the back of strong comparable restaurant sales growth and new restaurant openings.
McDonald's Corporation (MCD - Free Report) posted mixed first-quarter 2024 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. The top and the bottom line increased on a year-over-year basis.
During the quarter, MCD reported McDonald's reported adjusted EPS of $2.70, missing the Zacks Consensus Estimate of $2.71. EPS increased 2% year over year.
Quarterly net revenues of $6,169 million beat the consensus mark of $6,168 million. The top line rose 5% year over year.
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Cheesecake Factory (CAKE) Q1 Earnings Beat Estimates, Rise Y/Y
The Cheesecake Factory Incorporated (CAKE - Free Report) reported impressive first-quarter fiscal 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased from the prior-year quarter’s figure.
Earnings & Revenue Discussion
In the quarter under review, the company reported adjusted earnings per share (EPS) of 73 cents, beating the Zacks Consensus Estimate of 63 cents by 15.9%. In the year-ago period, the company reported adjusted EPS of 61 cents.
Quarterly revenues of $891.2 million beat the consensus estimate of $888 million by 0.3%. The top line increased 2.9% on a year-over-year basis. The upside was backed by strong consumer demand and traffic.
The Cheesecake Factory Incorporated Price, Consensus and EPS Surprise
The Cheesecake Factory Incorporated price-consensus-eps-surprise-chart | The Cheesecake Factory Incorporated Quote
Q1 Comps
In the reported quarter, comps at Cheesecake Factory restaurants dropped 0.6% year over year against growth of 5.7% reported in the prior-year quarter. We projected comps to decline 0.4% year over year.
North Italia comps rose 3% year over year compared with 9% growth reported in the year-ago quarter. Our model suggested the metric to rise 0.7% year over year.
Costs in Detail
The cost of food and beverage, as a percentage of revenues, declined 100 basis points (bps) year over year to 22.8% in the fiscal first quarter.
Labor expenses, as a percentage of total revenues, amounted to 36%, flat year over year. We expected the metric to be 36.2% of revenues in the quarter.
Other operating costs, as a percentage of total revenues, were 26.3%, down 40 bps from the prior-year quarter’s level. In the quarter, we anticipated the metric to be 26.8% of revenues.
General and administrative expenses accounted for 6.8% of revenues, up 60 bps year over year. Our model predicted the metric to be 6.4% of revenues in the fiscal first quarter.
In the fiscal first quarter, pre-opening expenses accounted for 0.6% of revenues, up 30 bps year over year.
Balance Sheet
As of Apr 2, 2024, Cheesecake Factory’s cash and cash equivalents totaled $60.2 million compared with $56.3 million as of Jan 2, 2024. Long-term debt (net of issuance costs) was $470.6 million compared with $470 million in the prior quarter. As of Apr 2, the company had a total available liquidity of $296.7 million.
Management declared a quarterly cash dividend of 27 cents per share. The dividend will be payable on Jun 4 to shareholders of record as of May 22, 2024. In the fiscal first quarter, CAKE repurchased approximately 359,400 shares for $12.5 million.
Store Developments
In the quarter under review, Cheesecake Factory opened five new restaurants. The openings included two North Italia restaurants, two FRC restaurants and one Flower Child location. Internationally, the company opened a Cheesecake Factory restaurant under licensing agreements in Mexico. Subsequent to the quarter-end, the company opened one Cheesecake Factory restaurant internationally under a licensing agreement in Asia.
In the fiscal 2024, the management expects to open 22 new restaurants. This includes three to four Cheesecake factories, six to seven North Italia's, six to seven Flower Child and six to seven FRC restaurants.
Zacks Rank
Cheesecake Factory currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
Recent Retail-Wholesale Releases
Yum China Holdings, Inc. (YUMC - Free Report) reported impressive first-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis. The upside can be attributed to robust total system sales growth and new unit contribution.
During the quarter, YUMC reported adjusted EPS of 71 cents, beating the Zacks Consensus Estimate of 66 cents. The bottom line moved up 2.9% from 69 cents reported a year ago.
Quarterly revenues of $2.96 billion outpaced the consensus mark of $2.94 billion. The top line inched up 1% on a year-over-year basis. Excluding foreign currency translation, revenues increased 7% year over year.
Chipotle Mexican Grill, Inc. (CMG - Free Report) released stellar first-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis. During the quarter, the company reported benefits from enhanced throughput and effective marketing initiatives like Braised Beef Barbacoa and Chicken Al Pastor, leading to strong sales and transaction growth. The company stated that the momentum continued into April.
During the quarter, CMG reported adjusted EPS of $13.37, outpacing the Zacks Consensus Estimate of $11.63. The bottom line increased 27.3% from $10.50 reported in the year-ago quarter.
Quarterly revenues of $2.7 billion surpassed the consensus mark of $2.68 billion by 1%. The top line rose 14.1% on a year-over-year basis on the back of strong comparable restaurant sales growth and new restaurant openings.
McDonald's Corporation (MCD - Free Report) posted mixed first-quarter 2024 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. The top and the bottom line increased on a year-over-year basis.
During the quarter, MCD reported McDonald's reported adjusted EPS of $2.70, missing the Zacks Consensus Estimate of $2.71. EPS increased 2% year over year.
Quarterly net revenues of $6,169 million beat the consensus mark of $6,168 million. The top line rose 5% year over year.