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The Cheesecake Factory Incorporated (CAKE - Free Report) reported fourth-quarter fiscal 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. Both top and bottom lines increased from the prior-year quarter’s figures.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Cheesecake Factory wrapped up a strong 2024, delivering record annual revenues and improved profitability, supported by solid top-line growth and earnings. The company’s success was primarily fueled by robust performance at its flagship Cheesecake Factory restaurants, which continued to outpace the broader casual dining industry in comparable sales and traffic. Management highlighted strong consumer demand across CAKE’s portfolio, reinforcing confidence in the long-term growth potential of its brands.
CAKE’s Earnings & Revenue Discussion
In the quarter under review, the company reported adjusted earnings per share (EPS) of $1.04, beating the Zacks Consensus Estimate of 92 cents by 13%. In the year-ago period, the company reported adjusted EPS of 80 cents.
Quarterly revenues of $921 million beat the consensus estimate of $912 million by 1%. The top line increased 5% on a year-over-year basis.
The Cheesecake Factory Incorporated Price, Consensus and EPS Surprise
In the reported quarter, comps at Cheesecake Factory restaurants inched up 1.7% year over year compared with the 2.5% growth reported in the prior-year quarter. We predicted comps to increase 1% year over year.
North Italia comps rose 1% year over year compared with 7% growth reported in the year-ago quarter. Our model expected the metric to rise 2.3% year over year.
CAKE’s Costs in Detail
The cost of food and beverage, as a percentage of revenues, contracted 70 basis points (bps) year over year to 22.3% in the fiscal fourth quarter. We expected the metric to be 22.7% of revenues in the quarter.
Labor expenses, as a percentage of total revenues, amounted to 34.2%, down 100 bps year over year. We expected the metric to be 35.5% of revenues in the quarter.
Other operating costs, as a percentage of total revenues, were 26.8%, flat year over year. In the quarter, we anticipated the metric to be 26.2% of revenues.
General and administrative expenses accounted for 6.3% of revenues, up 10 bps year over year. Our model predicted the metric to be 6.4% of revenues in the fiscal fourth quarter.
In the fiscal fourth quarter, pre-opening expenses accounted for 0.8% of revenues, up 30 bps year over year.
Balance Sheet of CAKE
As of Dec. 31., 2024, Cheesecake Factory’s cash and cash equivalents totaled $84.2 million compared with $56.3 million as of Jan. 2, 2024. Long-term debt (net of issuance costs) was $452.1 million compared with $470 million as of Jan. 2, 2024. As of Dec 31. 2024, the company had a total available liquidity of $340.7 million.
Management declared a quarterly cash dividend of 27 cents per share. The dividend will be payable on March 18, to its shareholders of record as of March 5, 2025. In the fiscal fourth quarter, CAKE repurchased approximately 11,800 shares for $0.5 million.
CAKE’s Store Developments
In the fourth quarter of fiscal 2024, the company expanded its footprint with nine new restaurant openings, including three North Italia locations, two Flower Child locations, two FRC restaurants and the relocation of two Cheesecake Factory restaurants. Following the quarter's end, five additional restaurants were opened, consisting of one North Italia location, two Flower Child locations and two FRC restaurants.
In 2025, the company anticipates accelerating growth by adding up to 25 restaurants across its portfolio.
Restaurant Brands International, Inc. (QSR - Free Report) reported fourth-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. Both top and bottom lines increased on a year-over-year basis.
During the quarter, consolidated comps increased 2.5% year over year and net restaurants grew 3.4%. Global system-wide sales rose 5.6% year over year. QSR unveiled its long-term consolidated performance expectations from 2024 to 2028. It anticipates achieving more than 3% growth in comparable sales and at least 5% net restaurant increase.
McDonald's Corporation (MCD - Free Report) reported fourth-quarter 2024 results, wherein earnings were in line with the Zacks Consensus Estimate but revenues missed the same. Both top and bottom lines decreased year over year. Its Accelerating-the-Arches strategy remains the right approach for expanding market share.
At company-operated restaurants, sales were $2.31 billion, down 7% year over year. Sales at franchise-operated restaurants amounted to $3.95 billion, which increased 2% year over year. The global comps increased 0.4% compared with 3.4% growth in the prior-year quarter. MCD’s comps increased after witnessing a decline in the preceding two quarters.
YUM! Brands, Inc. (YUM - Free Report) reported fourth-quarter 2024 results, with adjusted earnings and total revenues beating the Zacks Consensus Estimate. Both top and bottom lines increased on a year-over-year basis.
The company’s top-line performance reflected solid contributions from the KFC, Pizza Hut and Taco Bell divisions. YUM reported progress in the digital space, with digital sales rising approximately 15% and the digital mix surpassing 50%, moving closer to its long-term goal of 100% digital sales. Worldwide system sales, excluding foreign currency translation, grew 8% year over year, with Taco Bell increasing 14% and KFC rising 6%. The metric rose 3% year over year for Pizza Hut.
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Cheesecake Factory Q4 Earnings & Revenues Surpass Estimates
The Cheesecake Factory Incorporated (CAKE - Free Report) reported fourth-quarter fiscal 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. Both top and bottom lines increased from the prior-year quarter’s figures.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Cheesecake Factory wrapped up a strong 2024, delivering record annual revenues and improved profitability, supported by solid top-line growth and earnings. The company’s success was primarily fueled by robust performance at its flagship Cheesecake Factory restaurants, which continued to outpace the broader casual dining industry in comparable sales and traffic. Management highlighted strong consumer demand across CAKE’s portfolio, reinforcing confidence in the long-term growth potential of its brands.
CAKE’s Earnings & Revenue Discussion
In the quarter under review, the company reported adjusted earnings per share (EPS) of $1.04, beating the Zacks Consensus Estimate of 92 cents by 13%. In the year-ago period, the company reported adjusted EPS of 80 cents.
Quarterly revenues of $921 million beat the consensus estimate of $912 million by 1%. The top line increased 5% on a year-over-year basis.
The Cheesecake Factory Incorporated Price, Consensus and EPS Surprise
The Cheesecake Factory Incorporated price-consensus-eps-surprise-chart | The Cheesecake Factory Incorporated Quote
CAKE’s Q4 Comps
In the reported quarter, comps at Cheesecake Factory restaurants inched up 1.7% year over year compared with the 2.5% growth reported in the prior-year quarter. We predicted comps to increase 1% year over year.
North Italia comps rose 1% year over year compared with 7% growth reported in the year-ago quarter. Our model expected the metric to rise 2.3% year over year.
CAKE’s Costs in Detail
The cost of food and beverage, as a percentage of revenues, contracted 70 basis points (bps) year over year to 22.3% in the fiscal fourth quarter. We expected the metric to be 22.7% of revenues in the quarter.
Labor expenses, as a percentage of total revenues, amounted to 34.2%, down 100 bps year over year. We expected the metric to be 35.5% of revenues in the quarter.
Other operating costs, as a percentage of total revenues, were 26.8%, flat year over year. In the quarter, we anticipated the metric to be 26.2% of revenues.
General and administrative expenses accounted for 6.3% of revenues, up 10 bps year over year. Our model predicted the metric to be 6.4% of revenues in the fiscal fourth quarter.
In the fiscal fourth quarter, pre-opening expenses accounted for 0.8% of revenues, up 30 bps year over year.
Balance Sheet of CAKE
As of Dec. 31., 2024, Cheesecake Factory’s cash and cash equivalents totaled $84.2 million compared with $56.3 million as of Jan. 2, 2024. Long-term debt (net of issuance costs) was $452.1 million compared with $470 million as of Jan. 2, 2024. As of Dec 31. 2024, the company had a total available liquidity of $340.7 million.
Management declared a quarterly cash dividend of 27 cents per share. The dividend will be payable on March 18, to its shareholders of record as of March 5, 2025. In the fiscal fourth quarter, CAKE repurchased approximately 11,800 shares for $0.5 million.
CAKE’s Store Developments
In the fourth quarter of fiscal 2024, the company expanded its footprint with nine new restaurant openings, including three North Italia locations, two Flower Child locations, two FRC restaurants and the relocation of two Cheesecake Factory restaurants. Following the quarter's end, five additional restaurants were opened, consisting of one North Italia location, two Flower Child locations and two FRC restaurants.
In 2025, the company anticipates accelerating growth by adding up to 25 restaurants across its portfolio.
CAKE’s Zacks Rank & Recent Restaurant Releases
Cheesecake Factory currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Restaurant Brands International, Inc. (QSR - Free Report) reported fourth-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. Both top and bottom lines increased on a year-over-year basis.
During the quarter, consolidated comps increased 2.5% year over year and net restaurants grew 3.4%. Global system-wide sales rose 5.6% year over year. QSR unveiled its long-term consolidated performance expectations from 2024 to 2028. It anticipates achieving more than 3% growth in comparable sales and at least 5% net restaurant increase.
McDonald's Corporation (MCD - Free Report) reported fourth-quarter 2024 results, wherein earnings were in line with the Zacks Consensus Estimate but revenues missed the same. Both top and bottom lines decreased year over year. Its Accelerating-the-Arches strategy remains the right approach for expanding market share.
At company-operated restaurants, sales were $2.31 billion, down 7% year over year. Sales at franchise-operated restaurants amounted to $3.95 billion, which increased 2% year over year. The global comps increased 0.4% compared with 3.4% growth in the prior-year quarter. MCD’s comps increased after witnessing a decline in the preceding two quarters.
YUM! Brands, Inc. (YUM - Free Report) reported fourth-quarter 2024 results, with adjusted earnings and total revenues beating the Zacks Consensus Estimate. Both top and bottom lines increased on a year-over-year basis.
The company’s top-line performance reflected solid contributions from the KFC, Pizza Hut and Taco Bell divisions. YUM reported progress in the digital space, with digital sales rising approximately 15% and the digital mix surpassing 50%, moving closer to its long-term goal of 100% digital sales. Worldwide system sales, excluding foreign currency translation, grew 8% year over year, with Taco Bell increasing 14% and KFC rising 6%. The metric rose 3% year over year for Pizza Hut.