Wednesday November 3, 2021, 18:29:02
By Mark Kalinowski
After today’s (Wednesday’s) market close, The Cheesecake Factory reported adjusted Q3 EPS of $0.65, falling short of our $0.70 forecast and sell-side consensus (according to Consensus Metrix) of $0.70. We would note that Labor Expenses/Total Revenues amounted to 37.1% in Q3, as opposed to our 36.1% projection. In addition, Other Operating Costs/Total Revenues came to 26.7%, as compared to our 26.1% estimate. Management notes that higher-than-expected impacts in Q3 included group medical insurance costs, sick pay, and training expenses.
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Tuesday September 7, 2021, 16:56:44
By Mark Kalinowski
There appear to be at least two growing opportunities for The Cheesecake Factory. First, ghost kitchens seem to be well-aligned with the goals of the company’s bakery business. Second, Europe represents an opportunity. We are likely getting closer than ever to the company’s opening (most probably via a licensed partner) of the first Cheesecake Factory restaurant in Europe. And even if this latter opportunity doesn’t happen any time soon, perhaps there have been some hints that the bakery business — and the “Cheesecake Factory at Home” business — are poised for rapid growth in Europe, too.
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Tuesday July 27, 2021, 20:15:24
By Mark Kalinowski
After Tuesday’s market close, The Cheesecake Factory reported adjustedQ2 EPS of $0.80, ahead of our $0.63 forecast and sell-side consensus (according to Consensus Metrix) of $0.77. Factors contributing to the Q2 EPS outperformance relative to our forecasts include: (1) Cost of Sales/Revenues 22.0% actual vs. 22.5% projected, (2) Labor Expenses/Revenues 35.7% actual vs. 36.1% projected, and (3) D&A/Revenues 2.9% actual vs. 3.3% projected.
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