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What to Expect from Cheesecake Factory

By Seth Jayson - Updated Apr 10, 2017 at 1:48PM

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Checking expectations

Cheesecake Factory (Nasdaq: CAKE) is expected to report Q1 earnings on April 24. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Cheesecake Factory's revenues will expand 4.5% and EPS will grow 13.5%.

The average estimate for revenue is $455.3 million. On the bottom line, the average EPS estimate is $0.42.

Revenue details
Last quarter, Cheesecake Factory booked revenue of $464.7 million. GAAP reported sales were 2.7% lower than the prior-year quarter's $477.7 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.51. GAAP EPS of $0.40 for Q4 were 25% lower than the prior-year quarter's $0.53 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 42.9%, 70 basis points better than the prior-year quarter. Operating margin was 8.1%, 20 basis points worse than the prior-year quarter. Net margin was 4.8%, 150 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $1.91 billion. The average EPS estimate is $2.14.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 510 members out of 641 rating the stock outperform, and 131 members rating it underperform. Among 195 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 179 give Cheesecake Factory a green thumbs-up, and 16 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cheesecake Factory is hold, with an average price target of $35.95.

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Stocks Mentioned

The Cheesecake Factory Incorporated Stock Quote
The Cheesecake Factory Incorporated
$32.90 (6.44%) $1.99

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