CAKE Earnings Prediction
The chart below shows how CAKE performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CAKE sees a -0.30% change in stock price 10 days leading up to the earnings, and a +5.17% change 10 days following the report. On the earnings day itself, the stock moves by -0.59%. This data can give you a slight idea of what to expect for the next quarter's release.
CAKE Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
920.96M
5.01%
6.41%
Gross Margin
74.79%
0.67%
0.38%
Operating Margin
6.62%
32.67%
83.38%
Net Margin
4.47%
208.28%
28.82%
EPS
0.83
219.23%
36.07%
No Data Available
CAKE Earnings Analysis
Cheesecake Factory Inc Corporation (CAKE.O) Earnings Conference Call
Positive
Earnings Per Share Beat: The Cheesecake Factory reported an EPS of $1.04, exceeding expectations of $0.91, indicating strong financial performance.
Record High Revenues and Earnings: The company achieved record high annual revenues and adjusted earnings per share in 2024, showcasing growth and stability.
Comparable Sales Increase: In the fourth quarter, comparable sales for The Cheesecake Factory increased by 1.7%, outperforming the industry average, which reflects strong consumer demand.
Successful Restaurant Expansion: The company opened 9 new restaurants in Q4, the highest number in a single year, demonstrating successful expansion efforts.
Operational Efficiency Improvement: Cheesecake Factory restaurant level margins reached 18.4%, the highest level in over 7 years, indicating improved operational efficiency.
Sales Growth Performance: North Italia saw a 21% increase in sales year-over-year, with new locations exceeding average weekly sales expectations, highlighting strong brand performance.
Comparable Sales Growth: Flower Child comparable sales increased by 11%, significantly outpacing the fast casual dining index, indicating robust growth potential for this concept.
Strong Financial Liquidity: The company ended the quarter with total available liquidity of approximately $341 million, providing a strong financial position for future investments.
Restaurant Expansion Plans: The company plans to open as many as 25 new restaurants in 2025, indicating confidence in continued growth and expansion.
Negative
Sales Performance Slowdown: Comparable sales growth for The Cheesecake Factory was only 1.7%, indicating a slowdown in sales performance compared to previous periods.
Net Income Impact Analysis: Despite a positive overall revenue increase, the company faced a pretax net expense of $14.4 million related to asset impairment and lease termination, which negatively impacted net income.
Projected Net Income Margin: The adjusted net income margin for Q1 2025 is projected to be only 4.3% to 4.4%, which is lower than the previous year's performance, suggesting potential challenges in maintaining profitability.
Labor Cost Inflation Impact: The company anticipates low to mid-single-digit inflation in labor costs, which could pressure margins moving forward.
Projected Revenue for 2025: The anticipated total revenues for fiscal 2025 are projected at approximately $3.8 billion, which, while an increase, reflects a cautious outlook given the current economic conditions and inflationary pressures.
CAKE FAQs
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CAKE Earning Call Sentiment
The Cheesecake Factory Incorporated (NASDAQ:CAKE) Q4 2024 Earnings Call Transcript
CAKE.O
-0.58%Positive
The earnings call reveals strong financial performance, with record high restaurant margins and improved net income margins. Revenue guidance was slightly raised, and new unit openings exceeded expectations. The Q&A highlighted strong sales drivers and positive impacts from the rewards program. Despite some areas of uncertainty, the overall sentiment is positive, supported by strategic growth and shareholder returns. Given the company's market cap, a positive stock price movement of 2% to 8% is likely over the next two weeks.
