We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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.
The market has been on quite the run this year. When stocks are flying around like this, it can be tempting to throw money at anything with a pulse. But eventually, earnings matter. They always do. That’s why I like leaning on the Zacks Rank to uncover stocks where analysts are doing exactly what you want them to do. That’s raising their earnings estimates.
That brings us to today’s Bull of the Day, The Cheesecake Factory ((CAKE - Free Report) ). The company operates a diverse restaurant portfolio led by its namesake Cheesecake Factory restaurants, along with North Italia, Flower Child and a collection of concepts under Fox Restaurant Concepts. This isn't just about giant slices of cheesecake anymore. CAKE has built itself into a legitimate multi-brand restaurant growth story.
More importantly, the earnings are backing it up.
The Cheesecake Factory absolutely crushed expectations in the second quarter. Revenue increased 7.7% year over year to $1.03 billion, beating the Zacks Consensus Estimate by more than 3%. Adjusted earnings came in at $1.44 per share versus expectations for $1.17. That's a 23% earnings surprise and a big jump from $1.16 per share during the same quarter last year.
The Cheesecake Factory Incorporated Price and Consensus
Over the last 60 days, 10 analysts have increased their earnings estimates for the current year with none moving lower. The bullish moves pushed the Zacks Consensus Estimate from $4.01 to $4.47 per share. Ten analysts have also increased their estimates for next year without a single downward revision. That's exactly the sort of earnings estimate momentum we want to see.
That's the reason CAKE has recently earned itself a Zacks Rank #1 (Strong Buy). Current-year earnings growth is forecast at 18.5%. Next year's consensus calls for earnings around $4.96 per share, representing another double-digit increase. Revenue isn't sitting still either, with current-year sales growth expected around 6.8% followed by another 6.77% next year. In a world where some restaurants are struggling to make a profit, the company is taking the cake.
View the Zacks #1 Rank List
Image: Bigstock
Bull of the Day: The Cheesecake Factory (CAKE)
The market has been on quite the run this year. When stocks are flying around like this, it can be tempting to throw money at anything with a pulse. But eventually, earnings matter. They always do. That’s why I like leaning on the Zacks Rank to uncover stocks where analysts are doing exactly what you want them to do. That’s raising their earnings estimates.
That brings us to today’s Bull of the Day, The Cheesecake Factory ((CAKE - Free Report) ). The company operates a diverse restaurant portfolio led by its namesake Cheesecake Factory restaurants, along with North Italia, Flower Child and a collection of concepts under Fox Restaurant Concepts. This isn't just about giant slices of cheesecake anymore. CAKE has built itself into a legitimate multi-brand restaurant growth story.
More importantly, the earnings are backing it up.
The Cheesecake Factory absolutely crushed expectations in the second quarter. Revenue increased 7.7% year over year to $1.03 billion, beating the Zacks Consensus Estimate by more than 3%. Adjusted earnings came in at $1.44 per share versus expectations for $1.17. That's a 23% earnings surprise and a big jump from $1.16 per share during the same quarter last year.
The Cheesecake Factory Incorporated Price and Consensus
The Cheesecake Factory Incorporated price-consensus-chart | The Cheesecake Factory Incorporated Quote
That report got Wall Street's attention.
Over the last 60 days, 10 analysts have increased their earnings estimates for the current year with none moving lower. The bullish moves pushed the Zacks Consensus Estimate from $4.01 to $4.47 per share. Ten analysts have also increased their estimates for next year without a single downward revision. That's exactly the sort of earnings estimate momentum we want to see.
That's the reason CAKE has recently earned itself a Zacks Rank #1 (Strong Buy). Current-year earnings growth is forecast at 18.5%. Next year's consensus calls for earnings around $4.96 per share, representing another double-digit increase. Revenue isn't sitting still either, with current-year sales growth expected around 6.8% followed by another 6.77% next year. In a world where some restaurants are struggling to make a profit, the company is taking the cake.