Friday September 6, 2019, 00:00:00
CAKE Updating Introducing EPS Estimates Macau and New Menu Items
With this report, we reduce our Q3E same-store sales forecast for brand Cheesecake Factory (CAKE; Neutral) by -30 basis points, to +0.2%, placing us as the low forecast on the sell-side according to Consensus Metrix data. Our adjustment reflects weak casual-dining sector same-store sales trends for July and August, partially offset by The Cheesecake Factory’s relatively healthier brand (destination status) within casual dining. Our Q3E EPS estimate goes down by $0.01 to $0.55, placing us in line with consensus. We also take down our Q4E EPS estimate by $0.01 (to $0.64), and reduce our full-year 2019E EPS projection by $0.02, to $2.63.