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Factors Likely to Shape Cheesecake's (CAKE) Earnings in Q4
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The Cheesecake Factory Incorporated (CAKE - Free Report) is scheduled to report fourth-quarter fiscal 2020 results on Feb 17. In the last reported quarter, the company’s bottom line surpassed the Zacks Consensus Estimate by 35.3%.
Q4 Estimates
The Zacks Consensus Estimate for fourth-quarter bottom line is pegged at a loss of 9 cents. In the prior-year quarter, the company had reported earnings per share of 58 cents. Notably, the company’s earnings estimate for the quarter has been stable over the past seven days. The consensus mark for revenues stands at $603.9 million, suggesting a decline of 13% from the prior-year quarter.
Factors to Note
Cheesecake Factory’s fourth-quarter results are likely to reflect negative impact of the coronavirus pandemic. Dismal traffic might have weighed on the to-be-reported quarter’s performance. Moreover, rise in costs is likely to have impacted the performance of the quarter under review. The Zacks Consensus Estimate for restaurant revenues is pegged at $493 million, indicating a decline of 9.5% from the year-earlier reported figure.
However, the company’s performance might have benefited from robust digitalization. The is likely to get show in incremental sales from its delivery service, which continues to roll out nationwide. It continues to improve its to-go business including online ordering capability. This may have driven the company’s strong off-premise sales channels. Despite the pandemic, off-premise sales accounted for approximately 45% of the company’s restaurant sales in fiscal third-quarter 2020.
The Cheesecake Factory Incorporated Price, Consensus and EPS Surprise
Our proven model doesn’t conclusively predict an earnings beat for Cheesecake Factory this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Cheesecake Factory has an Earnings ESP of -108.60% and a Zacks Rank #4 (Sell), which make surprise prediction difficult.
Stocks With Favorable Combination
Here are some stocks from the Restaurant space that investors may consider as our model shows that these have the right combination of elements to post an earnings beat in the upcoming releases:
Domino's Pizza, Inc. (DPZ - Free Report) has an Earnings ESP of +2.52% and a Zacks Rank #3.
Wingstop Inc. (WING - Free Report) has an Earnings ESP of +15.17% and a Zacks Rank #3.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021? Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
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Factors Likely to Shape Cheesecake's (CAKE) Earnings in Q4
The Cheesecake Factory Incorporated (CAKE - Free Report) is scheduled to report fourth-quarter fiscal 2020 results on Feb 17. In the last reported quarter, the company’s bottom line surpassed the Zacks Consensus Estimate by 35.3%.
Q4 Estimates
The Zacks Consensus Estimate for fourth-quarter bottom line is pegged at a loss of 9 cents. In the prior-year quarter, the company had reported earnings per share of 58 cents. Notably, the company’s earnings estimate for the quarter has been stable over the past seven days. The consensus mark for revenues stands at $603.9 million, suggesting a decline of 13% from the prior-year quarter.
Factors to Note
Cheesecake Factory’s fourth-quarter results are likely to reflect negative impact of the coronavirus pandemic. Dismal traffic might have weighed on the to-be-reported quarter’s performance. Moreover, rise in costs is likely to have impacted the performance of the quarter under review. The Zacks Consensus Estimate for restaurant revenues is pegged at $493 million, indicating a decline of 9.5% from the year-earlier reported figure.
However, the company’s performance might have benefited from robust digitalization. The is likely to get show in incremental sales from its delivery service, which continues to roll out nationwide. It continues to improve its to-go business including online ordering capability. This may have driven the company’s strong off-premise sales channels. Despite the pandemic, off-premise sales accounted for approximately 45% of the company’s restaurant sales in fiscal third-quarter 2020.
The Cheesecake Factory Incorporated Price, Consensus and EPS Surprise
The Cheesecake Factory Incorporated price-consensus-eps-surprise-chart | The Cheesecake Factory Incorporated Quote
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Cheesecake Factory this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Cheesecake Factory has an Earnings ESP of -108.60% and a Zacks Rank #4 (Sell), which make surprise prediction difficult.
Stocks With Favorable Combination
Here are some stocks from the Restaurant space that investors may consider as our model shows that these have the right combination of elements to post an earnings beat in the upcoming releases:
Bloomin' Brands, Inc. (BLMN - Free Report) has a Zacks Rank #3 and an Earnings ESP of +6.25%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Domino's Pizza, Inc. (DPZ - Free Report) has an Earnings ESP of +2.52% and a Zacks Rank #3.
Wingstop Inc. (WING - Free Report) has an Earnings ESP of +15.17% and a Zacks Rank #3.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021? Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2021 today >>