The 10-second takeaway
For the quarter ended April 2 (Q1), Cheesecake Factory beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. GAAP earnings per share increased significantly.
Margins grew across the board.
Cheesecake Factory booked revenue of $463.0 million. The 23 analysts polled by S&P Capital IQ expected revenue of $455.6 million on the same basis. GAAP reported sales were 6.3% higher than the prior-year quarter's $435.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.47. The 24 earnings estimates compiled by S&P Capital IQ forecast $0.42 per share. GAAP EPS of $0.47 for Q1 were 27% higher than the prior-year quarter's $0.37 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 42.7%, 20 basis points better than the prior-year quarter. Operating margin was 8.1%, 120 basis points better than the prior-year quarter. Net margin was 5.5%, 70 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $474.1 million. On the bottom line, the average EPS estimate is $0.57.
Next year's average estimate for revenue is $1.90 billion. The average EPS estimate is $2.15.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 510 members out of 640 rating the stock outperform, and 130 members rating it underperform. Among 199 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 182 give Cheesecake Factory a green thumbs-up, and 17 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 $36.63.
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