Cheesecake Factory Q2 revenue beats expectations

Overview

• Cheesecake Factory fiscal Q2 revenue rises to $955.8 mln, beating analyst expectations

• Adjusted EPS for fiscal Q2 at $1.16, reflecting strong operational performance

• Company opened eight new restaurants, supporting growth strategy

Outlook

• Company plans to open up to 25 new restaurants in fiscal 2025

• Cheesecake Factory to open four new locations in fiscal 2025

• Company aims to maintain momentum and strong execution in H2 2025

• Cheesecake Factory sees strong consumer reception for new restaurant openings

Result Drivers

• COMPARABLE SALES - Cheesecake Factory restaurants saw a 1.2% increase in comparable sales, driven by healthy consumer demand

• OPERATIONAL IMPROVEMENTS - Year-over-year improvements in labor productivity and food efficiency contributed to earnings growth

• NEW RESTAURANT OPENINGS - Eight new restaurants opened in Q2, showing strong consumer reception and supporting growth strategy

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 9 "hold" and 4 "sell" or "strong sell"

• The average consensus recommendation for the restaurants & bars peer group is "buy"

• Wall Street's median 12-month price target for Cheesecake Factory Inc is $61.50, about 7.1% below its July 28 closing price of $65.89

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nBw7jY4KDa