NASDAQ$CAKE

The Cheesecake Factory Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

The Cheesecake Factory reported financial results for the second quarter of fiscal 2020.

The Cheesecake Factory's total revenues were $295.9 million, with a net loss of $56.5 million and a diluted net loss per share of $1.61, reflecting the impact of COVID-19.

  • Total revenues were $295.9 million compared to $602.6 million in the second quarter of fiscal 2019.
  • Net loss was $56.5 million, with a diluted net loss per share of $1.61.
  • Comparable restaurant sales at The Cheesecake Factory restaurants decreased 56.9%.
  • Approximately 71% of the Company’s restaurants are operating with reopened indoor dining rooms with limited capacity.

Headline financials

Total Revenue

$296M

Previous: $603M-50.9%
EPS (adj)

-$0.87

Previous: $0.82-206.1%
Cheesecake Factory Comp Sales

-56.9%

Previous: 0.0%
Capital Expenditures

-$29.4M

Previous: -$29.4M-0.2%
Free Cash Flow

-$86M

Previous: $6.14M-1500.3%
Net Income

-$56.5M

Previous: $35.5M-259.2%
Operating Income

-$83.7M

Previous: $40.1M-308.8%
Gross Profit

$224M

Previous: $468M-52.2%
Cash & Equivalents

$250M

Previous: $22.6M+1006.7%
Total Assets

$2.87B

Previous: $2.07B+38.3%
R&D Expense

$0.00

Previous: $0.00

Revenue & EPS history

The Cheesecake Factory · Revenue · Quarterly

$296M

Q2 2020-50.9%vs Q2 2019
Beat estimate in 6 of 16 quarters(38%)
ActualEstimate

Revenue by segment

The Cheesecake Factory · $877M total across 4 segments · Q4 2023

  • The Cheesecake Factory
    $658M-2.4%
  • Other
    $80.4M-6.8%
  • Other FRC
    $70.9M+6.6%
  • North Italia
    $67.2M+2.6%

Forward guidance

The company believes they will continue to be able to effectively manage through and ultimately emerge from this crisis in a strong position.

Tailwinds

  • Operators have done an extraordinary job navigating the myriad of evolving regulations.
  • The company has been able to bring a number of staff members back to work.
  • There has been very strong pent-up demand when Cheesecake Factory locations reopen on-premise dining.
  • Large restaurant footprints and flexible seating layouts are enabling the company to capture meaningful sales levels despite capacity restrictions.
  • The company continues to see strength in the off-premise channel at both reopened restaurants and those continuing to operate an off-premise only model.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

-0.6%

Avg return

Earnings day

-1.2%

Avg return

5 days after

+1.1%

Avg return

30 days after

41%

26 / 64 earnings

Positive

+9.0%

Q1 2021

Best reaction

-9.6%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.7%-2.5%+5.4%
Q4 2025-2.5%+0.4%-10.8%
Q3 2025-7.2%-12.6%-12.3%
Q1 2025+1.6%-12.7%-1.1%
Q4 2024+1.3%+0.2%-10.3%
Q3 2024+2.9%+7.0%+17.2%
Q2 2024-1.0%+1.8%+10.6%
Q1 2024+1.2%-5.1%-4.5%
Q4 2023-1.9%-4.5%-1.3%
Q3 2023-2.3%-2.0%+1.0%
Q2 2023-1.4%-4.7%-16.6%
Q1 2023-4.4%-5.4%-1.3%
Q4 2022-2.4%-2.2%-8.7%
Q3 2022-9.6%-5.7%-3.2%
Q2 2022-0.4%+0.5%+4.8%
Q1 2022+2.7%-2.4%-14.6%
Q4 2021-1.2%+3.5%-8.2%
Q3 2021+5.7%+9.7%-4.7%
Q2 2021+1.3%-2.4%+4.5%
Q1 2021+9.0%+6.8%+1.5%
Q4 2020+1.4%+3.1%+15.3%
Q3 2020+2.3%+6.2%+28.1%
Q2 2020+0.5%-8.2%+21.6%
Q1 2020+5.9%-12.1%+3.0%
Q4 2019-6.7%+12.1%+31.0%
Q3 2019-1.9%-1.3%+0.0%
Q2 2019-3.4%-5.5%-8.5%
Q1 2019-3.7%-4.5%-11.2%
Q4 2018-0.4%-1.5%+2.2%
Q3 2018-4.1%-2.5%-12.3%
Q2 2018-0.2%-0.9%+9.9%
Q1 2018-3.4%-3.0%+0.6%
Q4 2017-0.4%+2.5%+2.0%
Q3 2017+3.6%+3.6%+13.4%
Q2 2017+0.0%+0.1%-13.0%
Q1 2017-5.5%-6.7%-6.8%
Q4 2016-0.1%+0.7%+3.5%
Q3 2016-0.9%+1.0%+15.2%
Q2 2016-0.0%+0.7%+1.0%
Q1 2016-3.9%
Q4 2015-0.6%
Q3 2015-0.4%
Q2 2015-2.8%
Q1 2015-1.0%
Q4 2014+2.5%
Q3 2014+0.2%
Q2 2014+0.9%
Q1 2014+1.7%
Q4 2013+0.6%
Q3 2013+1.9%
Q2 2013-0.3%
Q1 2013+1.0%
Q4 2012-0.5%
Q3 2012+0.9%
Q2 2012-0.7%
Q1 2012-1.9%
Q4 2011+0.5%
Q3 2011-1.2%
Q2 2011-7.2%
Q1 2011-0.2%
Q4 2010+0.2%
Q3 2010+1.4%
Q2 2010-0.5%
Q1 2010-5.9%

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