We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Cheesecake Factory (CAKE) Stock Up Despite Q4 Earnings Miss
Read MoreHide Full Article
The Cheesecake Factory Incorporated (CAKE - Free Report) reported fourth-quarter fiscal 2021 results, wherein earnings and revenues missed the Zacks Consensus Estimate for the second straight quarter. However, the top and the bottom lines improved on a year-over-year basis.
Despite reporting lower-than-expected results, the company’s shares increased 4% in the after-hours trading session on Feb 16. Investor sentiment received a boost following the company’s announcement that fiscal 2022 first quarter-to-date through Feb 15, comparable sales rose nearly 24.3% year over year. Comps benefited from robust off-premise sales.
David Overton, chairman and CEO officer, said, “We posted another quarter of solid sales performance across our brands, continuing to outperform the broader casual dining industry and recording record revenues despite the surge in COVID-19 cases from the Omicron variant towards the end of the year.”
Earnings & Revenue Discussion
In the quarter under review, adjusted earnings per share (EPS) was 49 cents, which missed the Zacks Consensus Estimate of 59 cents. In the prior-year quarter, the company had reported an adjusted loss of 32 cents per share.
During the fiscal fourth quarter, total revenues of $776.7 million lagged the Zacks Consensus Estimate of $778 million. The top line surged 40.1% on a year-over-year basis. The upside can primarily be attributed to solid off-premise sales growth.
During the reported quarter, comps at Cheesecake Factory restaurants increased 33.8% year over year. In the prior-year quarter, comps had fallen 19.5% year over year. However, the metric is up 7.7% compared with 2019 levels.
The Cheesecake Factory Incorporated Price, Consensus and EPS Surprise
Cost of sales, as a percentage of revenues, increased 10 basis points (bps) year over year to 23% in the fiscal fourth quarter. Labor expenses, as a percentage of total revenues, were 37.1%, down 210 bps from the year-ago quarter’s levels. Other operating costs (as a percentage of total revenues) came in at 27%, down 320 bps from the prior-year quarter’s level.
General and administrative (G&A) expenses accounted for 6.1% of revenues compared with 7.3% in the prior-year quarter. In the fiscal fourth quarter, pre-opening expenses accounted for 0.5% of revenues, flat year over year.
Balance Sheet
As of Dec 28, 2021, Cheesecake Factory’s cash and cash equivalents totaled $189.6 million compared with $154.1 million as of Dec 29, 2020. During the fiscal fourth quarter, long-term debt (net of issuance costs) was $466 million compared with $280 million as of Dec 29, 2020.
Developmental Details
During the fiscal fourth quarter, the company opened four new restaurants, including The Cheesecake Factory in Huntsville, AL, North Italia in Orlando and a Blanco and a Culinary Dropout in Denver. During the quarter, the company achieved its development objective of opening 14 new restaurants (across its concepts) in fiscal 2021.
Zacks Rank & Key Picks
Cheesecake Factory carries a Zacks Rank #4 (Sell).
MarineMax sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. HZO has a trailing four-quarter earnings surprise of 55.8%, on average. Shares of the company have increased 6.8% in the past year.
The Zacks Consensus Estimate for MarineMax’s 2022 sales and EPS suggests growth of 13.9% and 16.2%, respectively, from the year-ago period’s levels.
Arcos Dorados carries a Zacks Rank #2 (Buy). ARCO has a long-term earnings growth of 42.9%. Shares of the company have surged 32.8% in the past year.
The Zacks Consensus Estimate for Arcos Dorados’ 2022 sales and EPS suggests growth of 10.4% and 255.6%, respectively, from the year-ago period’s levels.
Tapestry carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 29%, on average. Shares of the company have increased 9.1% in the past year.
The Zacks Consensus Estimate for Tapestry’s 2022 sales and EPS suggests growth of 15% and 18.5%, respectively, from the year-ago period’s levels.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Shutterstock
Cheesecake Factory (CAKE) Stock Up Despite Q4 Earnings Miss
The Cheesecake Factory Incorporated (CAKE - Free Report) reported fourth-quarter fiscal 2021 results, wherein earnings and revenues missed the Zacks Consensus Estimate for the second straight quarter. However, the top and the bottom lines improved on a year-over-year basis.
Despite reporting lower-than-expected results, the company’s shares increased 4% in the after-hours trading session on Feb 16. Investor sentiment received a boost following the company’s announcement that fiscal 2022 first quarter-to-date through Feb 15, comparable sales rose nearly 24.3% year over year. Comps benefited from robust off-premise sales.
David Overton, chairman and CEO officer, said, “We posted another quarter of solid sales performance across our brands, continuing to outperform the broader casual dining industry and recording record revenues despite the surge in COVID-19 cases from the Omicron variant towards the end of the year.”
Earnings & Revenue Discussion
In the quarter under review, adjusted earnings per share (EPS) was 49 cents, which missed the Zacks Consensus Estimate of 59 cents. In the prior-year quarter, the company had reported an adjusted loss of 32 cents per share.
During the fiscal fourth quarter, total revenues of $776.7 million lagged the Zacks Consensus Estimate of $778 million. The top line surged 40.1% on a year-over-year basis. The upside can primarily be attributed to solid off-premise sales growth.
During the reported quarter, comps at Cheesecake Factory restaurants increased 33.8% year over year. In the prior-year quarter, comps had fallen 19.5% year over year. However, the metric is up 7.7% compared with 2019 levels.
The Cheesecake Factory Incorporated Price, Consensus and EPS Surprise
The Cheesecake Factory Incorporated price-consensus-eps-surprise-chart | The Cheesecake Factory Incorporated Quote
Costs in Detail
Cost of sales, as a percentage of revenues, increased 10 basis points (bps) year over year to 23% in the fiscal fourth quarter. Labor expenses, as a percentage of total revenues, were 37.1%, down 210 bps from the year-ago quarter’s levels. Other operating costs (as a percentage of total revenues) came in at 27%, down 320 bps from the prior-year quarter’s level.
General and administrative (G&A) expenses accounted for 6.1% of revenues compared with 7.3% in the prior-year quarter. In the fiscal fourth quarter, pre-opening expenses accounted for 0.5% of revenues, flat year over year.
Balance Sheet
As of Dec 28, 2021, Cheesecake Factory’s cash and cash equivalents totaled $189.6 million compared with $154.1 million as of Dec 29, 2020. During the fiscal fourth quarter, long-term debt (net of issuance costs) was $466 million compared with $280 million as of Dec 29, 2020.
Developmental Details
During the fiscal fourth quarter, the company opened four new restaurants, including The Cheesecake Factory in Huntsville, AL, North Italia in Orlando and a Blanco and a Culinary Dropout in Denver. During the quarter, the company achieved its development objective of opening 14 new restaurants (across its concepts) in fiscal 2021.
Zacks Rank & Key Picks
Cheesecake Factory carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the Zacks Retail-Wholesale sector include MarineMax, Inc. (HZO - Free Report) , Arcos Dorados Holdings Inc. (ARCO - Free Report) and Tapestry, Inc. (TPR - Free Report) .
MarineMax sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. HZO has a trailing four-quarter earnings surprise of 55.8%, on average. Shares of the company have increased 6.8% in the past year.
The Zacks Consensus Estimate for MarineMax’s 2022 sales and EPS suggests growth of 13.9% and 16.2%, respectively, from the year-ago period’s levels.
Arcos Dorados carries a Zacks Rank #2 (Buy). ARCO has a long-term earnings growth of 42.9%. Shares of the company have surged 32.8% in the past year.
The Zacks Consensus Estimate for Arcos Dorados’ 2022 sales and EPS suggests growth of 10.4% and 255.6%, respectively, from the year-ago period’s levels.
Tapestry carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 29%, on average. Shares of the company have increased 9.1% in the past year.
The Zacks Consensus Estimate for Tapestry’s 2022 sales and EPS suggests growth of 15% and 18.5%, respectively, from the year-ago period’s levels.