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What's in Store for Cheesecake Factory's (CAKE) Q1 Earnings?
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The Cheesecake Factory Incorporated (CAKE - Free Report) is scheduled to report first-quarter fiscal 2023 results on May 10. In the previous quarter, the company’s earnings matched the Zacks Consensus Estimate of 56 cents.
How Are Estimates Placed?
The Zacks Consensus Estimate for first-quarter earnings per share (EPS) is pegged at 59 cents, indicating growth of 25.5% from 47 cents registered in the year-ago quarter.
For revenues, the consensus mark is pegged at nearly $869.5 million, suggesting an increase of 9.5% from the prior-year quarter’s figure.
The Cheesecake Factory Incorporated Price and EPS Surprise
Let’s discuss the factors that are likely to get reflected in the quarter to be reported.
Factors at Play
Cheesecake Factory’s fiscal first-quarter performance is likely to have benefited from solid off-premise sales, enhancement of marketing strategies, FRC-related differentiated concepts and unit-expansion efforts. During the previous quarter’s earnings call, the company stated that off-premise sales contributed approximately 23% to the company’s total restaurant sales. The company stated that off-premise sales remain elevated from pre-pandemic levels. With increased focus on targeted off-premise marketing supported by a rise in customer count, the momentum is likely to have continued in the fiscal first quarter. The company anticipates first-quarter revenues to be in the range of $850-$880 million.
The company’s fiscal first-quarter top line is likely to reflect an improvement in comps. During the previous quarter’s earnings call, the company stated that comps (through Feb 21) increased approximately 9.5% year over year and 17% from the fiscal 2019 levels. Backed by a consistent rise in menu price and an emphasis on new menu roll-out, the momentum is likely to have continued in the fiscal first quarter.
Supply chain challenges and permit approval delays are likely to have affected operations in the fiscal first quarter. Inflationary pressure related to labor and commodities, is likely to have dented margin in the fiscal first quarter. For first-quarter fiscal 2023, the company anticipates commodity inflation in the range of 10-12% on an annual basis. Labor inflation for the fiscal first quarter is expected at 6%. Our model predicts cost of sales and labor expenses to rise 11.1% and 5.8% year over year to $209.4 million and $ 312.9 million, respectively, in the to-be-reported quarter.
What Our Model Says
Our proven model predicts 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.
Earnings ESP: Cheesecake Factory has an Earnings ESP of +2.33%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some other stocks worth considering from the Zacks Retail-Wholesale sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.
Chuy's Holdings, Inc. (CHUY - Free Report) has an Earnings ESP of +1.71% and a Zacks Rank #2.
Shares of Chuy's Holdings have declined 12.1% so far this year. CHUY’s earnings beat the consensus mark in each of the trailing four quarters. The company has a trailing four-quarter earnings surprise of 23.4%, on average.
BJ's Restaurants, Inc. (BJRI - Free Report) has an Earnings ESP of +0.63% and a Zacks Rank #2.
Shares of BJ's Restaurants have declined 12.1% in the past year. BJRI’s earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 93%.
Brinker International, Inc. (EAT - Free Report) has an Earnings ESP of +0.13% and a Zacks Rank #3.
Shares of Brinker have increased 10.8% in the past year. EAT’s earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 14.6%.
Image: Shutterstock
What's in Store for Cheesecake Factory's (CAKE) Q1 Earnings?
The Cheesecake Factory Incorporated (CAKE - Free Report) is scheduled to report first-quarter fiscal 2023 results on May 10. In the previous quarter, the company’s earnings matched the Zacks Consensus Estimate of 56 cents.
How Are Estimates Placed?
The Zacks Consensus Estimate for first-quarter earnings per share (EPS) is pegged at 59 cents, indicating growth of 25.5% from 47 cents registered in the year-ago quarter.
For revenues, the consensus mark is pegged at nearly $869.5 million, suggesting an increase of 9.5% from the prior-year quarter’s figure.
The Cheesecake Factory Incorporated Price and EPS Surprise
The Cheesecake Factory Incorporated price-eps-surprise | The Cheesecake Factory Incorporated Quote
Let’s discuss the factors that are likely to get reflected in the quarter to be reported.
Factors at Play
Cheesecake Factory’s fiscal first-quarter performance is likely to have benefited from solid off-premise sales, enhancement of marketing strategies, FRC-related differentiated concepts and unit-expansion efforts. During the previous quarter’s earnings call, the company stated that off-premise sales contributed approximately 23% to the company’s total restaurant sales. The company stated that off-premise sales remain elevated from pre-pandemic levels. With increased focus on targeted off-premise marketing supported by a rise in customer count, the momentum is likely to have continued in the fiscal first quarter. The company anticipates first-quarter revenues to be in the range of $850-$880 million.
The company’s fiscal first-quarter top line is likely to reflect an improvement in comps. During the previous quarter’s earnings call, the company stated that comps (through Feb 21) increased approximately 9.5% year over year and 17% from the fiscal 2019 levels. Backed by a consistent rise in menu price and an emphasis on new menu roll-out, the momentum is likely to have continued in the fiscal first quarter.
Supply chain challenges and permit approval delays are likely to have affected operations in the fiscal first quarter. Inflationary pressure related to labor and commodities, is likely to have dented margin in the fiscal first quarter. For first-quarter fiscal 2023, the company anticipates commodity inflation in the range of 10-12% on an annual basis. Labor inflation for the fiscal first quarter is expected at 6%. Our model predicts cost of sales and labor expenses to rise 11.1% and 5.8% year over year to $209.4 million and $ 312.9 million, respectively, in the to-be-reported quarter.
What Our Model Says
Our proven model predicts 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.
Earnings ESP: Cheesecake Factory has an Earnings ESP of +2.33%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks Poised to Beat on Earnings
Here are some other stocks worth considering from the Zacks Retail-Wholesale sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.
Chuy's Holdings, Inc. (CHUY - Free Report) has an Earnings ESP of +1.71% and a Zacks Rank #2.
Shares of Chuy's Holdings have declined 12.1% so far this year. CHUY’s earnings beat the consensus mark in each of the trailing four quarters. The company has a trailing four-quarter earnings surprise of 23.4%, on average.
BJ's Restaurants, Inc. (BJRI - Free Report) has an Earnings ESP of +0.63% and a Zacks Rank #2.
Shares of BJ's Restaurants have declined 12.1% in the past year. BJRI’s earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 93%.
Brinker International, Inc. (EAT - Free Report) has an Earnings ESP of +0.13% and a Zacks Rank #3.
Shares of Brinker have increased 10.8% in the past year. EAT’s earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 14.6%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.