A Look Back at Sit-Down Dining Stocks’ Q2 Earnings: The Cheesecake Factory (NASDAQ:CAKE) Vs The Rest Of The Pack

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at The Cheesecake Factory (NASDAQ:CAKE) and the best and worst performers in the sit-down dining industry.

Sit-down restaurants offer a complete dining experience with table service. These establishments span various cuisines and are renowned for their warm hospitality and welcoming ambiance, making them perfect for family gatherings, special occasions, or simply unwinding. Their extensive menus range from appetizers to indulgent desserts and wines and cocktails. This space is extremely fragmented and competition includes everything from publicly-traded companies owning multiple chains to single-location mom-and-pop restaurants.

The 12 sit-down dining stocks we track reported a mixed Q2. As a group, revenues were in line with analysts’ consensus estimates.

Inflation progressed towards the Fed’s 2% goal at the end of 2023, leading to strong stock market performance. On the other hand, 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts and inflation. However, sit-down dining stocks have held steady amidst all this with average share prices relatively unchanged since the latest earnings results.

The Cheesecake Factory (NASDAQ:CAKE)

Celebrated for its delicious (and free) brown bread, gigantic portions, and delectable desserts, Cheesecake Factory (NASDAQ:CAKE) is an iconic American restaurant chain that also owns and operates a portfolio of separate restaurant brands.

The Cheesecake Factory reported revenues of $904 million, up 4.4% year on year. This print was in line with analysts’ expectations, and overall, it was a strong quarter for the company with an impressive beat of analysts’ gross margin estimates and a decent beat of analysts’ earnings estimates.

Interestingly, the stock is up 4.1% since reporting and currently trades at $40.56.

Is now the time to buy The Cheesecake Factory? Access our full analysis of the earnings results here, it’s free.

Best Q2: First Watch (NASDAQ:FWRG)

Based on a nautical reference to the first work shift aboard a ship, First Watch (NASDAQ:FWRG) is a chain of breakfast and brunch restaurants whose menu is heavily-focused on eggs and griddle items such as pancakes.

First Watch reported revenues of $258.6 million, up 19.5% year on year, in line with analysts’ expectations. It was a very strong quarter for the company with an impressive beat of analysts’ gross margin estimates and a decent beat of analysts’ earnings estimates.

The market seems happy with the results as the stock is up 23% since reporting. It currently trades at $17.55.

Is now the time to buy First Watch? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: Bloomin' Brands (NASDAQ:BLMN)

Owner of the iconic Australian-themed Outback Steakhouse, Bloomin’ Brands (NASDAQ:BLMN) is a leading American restaurant company that owns and operates a portfolio of popular restaurant brands.

Bloomin' Brands reported revenues of $1.12 billion, down 2.9% year on year, in line with analysts’ expectations. It was a weak quarter for the company with underwhelming earnings guidance for the next quarter and a miss of analysts’ earnings estimates.

Bloomin' Brands posted the slowest revenue growth in the group. The stock is flat since the results and currently trades at $18.23.

Read our full analysis of Bloomin' Brands’s results here.

Texas Roadhouse (NASDAQ:TXRH)

With locations often featuring Western-inspired decor, Texas Roadhouse (NASDAQ:TXRH) is an American restaurant chain specializing in Southern-style cuisine and steaks.

Texas Roadhouse reported revenues of $1.34 billion, up 14.5% year on year, in line with analysts’ expectations. Taking a step back, it was a strong quarter for the company with an impressive beat of analysts’ gross margin estimates and a decent beat of analysts’ earnings estimates.

The stock is up 2.2% since reporting and currently trades at $169.61.

Read our full, actionable report on Texas Roadhouse here, it’s free.

Brinker International (NYSE:EAT)

Founded by Norman Brinker in Dallas, Texas, Brinker International (NYSE:EAT) is a casual restaurant chain that operates under the Chili’s, Maggiano’s Little Italy, and It’s Just Wings banners.

Brinker International reported revenues of $1.21 billion, up 12.3% year on year, surpassing analysts’ expectations by 3.8%. More broadly, it was a mixed quarter for the company with a decent beat of analysts’ gross margin estimates but underwhelming earnings guidance for the full year.

Brinker International delivered the biggest analyst estimates beat and highest full-year guidance raise among its peers. The stock is down 1.3% since reporting and currently trades at $69.39.

Read our full, actionable report on Brinker International here, it’s free.

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