The Cheesecake Factory Incorporated (CAKE): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report


The Cheesecake Factory posted lower-than-expected third-quarter earnings and also cut its 2014 earnings guidance for the third time this year. Adjusted earnings of $0.48 per share decreased 7.7% year over year and missed the Zacks Consensus Estimate by 15.8% owing to higher total costs and expenses. However, revenues beat the consensus mark by 0.5%. Higher comps resulted in a 6.3% year-over-year revenue growth. In fact, the company has been reporting positive comps since the beginning of 2013. Going forward, we expect the company to remain well positioned with its pricing actions and international expansion in regions with growth potential. However, continued underperformance of the Grand Lux Caf , weak consumer spending and food cost inflation remain headwinds. Moreover, the repeated guidance cuts raise concerns. We, thus, maintain our Neutral recommendation on the stock.


Founded in 1972 and based in Calabasas Hills, CA, The Cheesecake Factory Inc. (CAKE), operates upscale, casual, and full-service dining restaurants in the United States. The company operates 186 full-service, casual dining restaurants throughout the U.S. and Puerto Rico, including 174 restaurants under The Cheesecake Factory brand, 11 restaurants under the Grand Lux Cafe brand and one restaurant under the RockSugar Pan Asian Kitchen brand.

The company also has two bakery production facilities located in Calabasas Hills and Rocky Mount, N.C. These produce baked desserts and other products for its restaurants, as well as for other foodservice operators, retailers, and distributors.

Currently, the company operates through two segments, The Cheesecake Factory and Other.

The Cheesecake Factory Incorporated (CAKE): Read the Full Research Report
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

CHEESECAKE FACT (CAKE): Free Stock Analysis Report

To read this article on click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ, Inc.

This article appears in: Investing , Stocks

Referenced Stocks: CAKE

More from

Related Videos



Most Active by Volume

    $15.75 unch
  • $27.18 ▲ 4.70%
  • $109.50 ▼ 1.16%
  • $13.46 ▲ 3.46%
  • $28.03 ▲ 0.94%
  • $106.05 ▲ 0.40%
  • $24.15 ▼ 5.96%
  • $114.93 ▲ 6.32%
As of 10/8/2015, 04:04 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by