The Cheesecake Factory (CAKE) Reports Earnings Tomorrow: What To Expect

Restaurant company Cheesecake Factory (NASDAQ:CAKE) will be reporting results tomorrow afternoon. Here’s what you need to know.

The Cheesecake Factory met analysts’ revenue expectations last quarter, reporting revenues of $904 million, up 4.4% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a decent beat of analysts’ earnings estimates.

Is The Cheesecake Factory a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting The Cheesecake Factory’s revenue to grow 4.3% year on year to $866.1 million, slowing from the 5.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.49 per share.

Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 5 downward revisions over the last 30 days (we track 16 analysts). The Cheesecake Factory has missed Wall Street’s revenue estimates six times over the last two years.

Looking at The Cheesecake Factory’s peers in the sit-down dining segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Texas Roadhouse delivered year-on-year revenue growth of 13.5%, meeting analysts’ expectations, and Darden reported flat revenue, falling short of estimates by 1.5%. Texas Roadhouse traded up 3.6% following the results while Darden was also up 7%.

Read our full analysis of Texas Roadhouse’s results here and Darden’s results here.

There has been positive sentiment among investors in the sit-down dining segment, with share prices up 2.5% on average over the last month. The Cheesecake Factory is up 3.3% during the same time and is heading into earnings with an average analyst price target of $42.63 (compared to the current share price of $41.91).

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