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CALABASAS HILLS - Cheesecake Factory Inc. (NASDAQ:CAKE) reported third-quarter earnings that exceeded analyst expectations despite a slight revenue miss, sending shares up 1% in trading.
The restaurant chain posted adjusted earnings per share of $0.68 for the third quarter, beating the analyst estimate of $0.60 by 13%. Revenue came in at $907.2 million, slightly below the consensus estimate of $912.82 million but up 4.8% compared to $865.5 million in the same quarter last year. Comparable restaurant sales at The Cheesecake Factory restaurants increased 0.3% YoY.
The company’s stock edged up 1% following the mixed results, as investors appeared to focus on the earnings beat and improved operational efficiency despite the revenue shortfall.
"We delivered another quarter of solid results, with revenue within our guidance range and earnings and profitability finishing above the high end of our expectations," said David Overton, Chairman and Chief Executive Officer.
Management highlighted operational improvements including better labor productivity, wage management, and improved staff retention, which helped support margins despite what they described as "a more challenging and competitive environment."
The company opened two new Fox Restaurant Concepts locations during the quarter, while two Cheesecake Factory restaurants opened internationally in Mexico under licensing agreements. Cheesecake Factory maintains its plan to open up to 25 new restaurants in fiscal 2025.
As of September 30, the company reported total available liquidity of $556.5 million, including $190 million in cash. The board declared a quarterly dividend of $0.27 per share, payable on November 25 to shareholders of record as of November 11.
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