Exploring Cheesecake Factory's Earnings Expectations
Cheesecake Factory (NASDAQ:CAKE) is set to give its latest quarterly earnings report on Tuesday, 2025-07-29. Here's what investors need to know before the announcement.
Analysts estimate that Cheesecake Factory will report an earnings per share (EPS) of $1.06.
The announcement from Cheesecake Factory is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.
It's worth noting for new investors that guidance can be a key determinant of stock price movements.
Earnings Track Record
The company's EPS beat by $0.11 in the last quarter, leading to a 4.39% drop in the share price on the following day.
Here's a look at Cheesecake Factory's past performance and the resulting price change:
| Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|
| EPS Estimate | 0.82 | 0.92 | 0.49 | 0.99 |
| EPS Actual | 0.93 | 1.04 | 0.58 | 1.09 |
| Price Change % | -4.0% | 1.0% | 9.0% | -5.0% |
Tracking Cheesecake Factory's Stock Performance
Shares of Cheesecake Factory were trading at $65.78 as of July 25. Over the last 52-week period, shares are up 68.58%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Analyst Insights on Cheesecake Factory
For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Cheesecake Factory.
A total of 12 analyst ratings have been received for Cheesecake Factory, with the consensus rating being Neutral. The average one-year price target stands at $56.08, suggesting a potential 14.75% downside.
Comparing Ratings with Competitors
This comparison focuses on the analyst ratings and average 1-year price targets of and Cheesecake Factory, three major players in the industry, shedding light on their relative performance expectations and market positioning.
Key Findings: Peer Analysis Summary
Within the peer analysis summary, vital metrics for and Cheesecake Factory are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Cheesecake Factory | Neutral | 4.04% | $393.86M | 8.42% |
Key Takeaway:
Cheesecake Factory is positioned in the middle among its peers for Consensus rating. It ranks in the middle for Revenue Growth. It is in the middle for Gross Profit. It is in the middle for Return on Equity.
All You Need to Know About Cheesecake Factory
Cheesecake Factory Inc owns and operates restaurants in the United States and Canada under brands that include The Cheesecake Factory, North Italia, and a collection within the Fox Restaurants Concepts subsidiary. The company's international presence, in the Middle East and Mexico, is through licensing agreements with third parties. The company also has a bakery division that produces cheesecakes and other baked products for sale in its restaurants, international licensees, and third-party bakery customers. The company has four operating business segments: The Cheesecake Factory restaurants, North Italia, other FRC, and Flower Child. Majority of the company's revenue comes from The Cheesecake Factory restaurants segment.
Breaking Down Cheesecake Factory's Financial Performance
Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.
Revenue Growth: Over the 3 months period, Cheesecake Factory showcased positive performance, achieving a revenue growth rate of 4.04% as of 31 March, 2025. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Discretionary sector.
Net Margin: Cheesecake Factory's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.55% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): Cheesecake Factory's ROE stands out, surpassing industry averages. With an impressive ROE of 8.42%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): Cheesecake Factory's ROA stands out, surpassing industry averages. With an impressive ROA of 1.07%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: Cheesecake Factory's debt-to-equity ratio stands notably higher than the industry average, reaching 6.19. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
To track all earnings releases for Cheesecake Factory visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
