The 10-second takeaway
For the quarter ended Jan. 3 (Q4), Cheesecake Factory beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share grew significantly.
Gross margins shrank, operating margins grew, net margins increased.
Cheesecake Factory booked revenue of $477.7 million. The 24 analysts polled by S&P Capital IQ expected to see a top line of $470.5 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $416.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.53. The 25 earnings estimates compiled by S&P Capital IQ predicted $0.52 per share on the same basis. GAAP EPS of $0.54 for Q4 were 50% higher than the prior-year quarter's $0.36 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 42.2%, 70 basis points worse than the prior-year quarter. Operating margin was 8.3%, 90 basis points better than the prior-year quarter. Net margin was 6.3%, 110 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $442.6 million. On the bottom line, the average EPS estimate is $0.36.
Next year's average estimate for revenue is $1.83 billion. The average EPS estimate is $1.84.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 504 members out of 642 rating the stock outperform, and 138 members rating it underperform. Among 203 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 179 give Cheesecake Factory a green thumbs-up, and 24 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cheesecake Factory is outperform, with an average price target of $31.10.
Over the decades, small-cap stocks, like Cheesecake Factory have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Cheesecake Factory to My Watchlist.