NASDAQ$CAKE

The Cheesecake Factory Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

The Cheesecake Factory reported results for the third quarter of fiscal year 2020.

The Cheesecake Factory Incorporated reported a decrease in total revenues to $517.7 million compared to $586.5 million in the third quarter of fiscal 2019. The company experienced a net loss of $28.3 million, or $0.76 per share, reflecting the impact of COVID-19.

  • Total revenues were $517.7 million in the third quarter of fiscal 2020 compared to $586.5 million in the third quarter of fiscal 2019.
  • Net loss and diluted net loss per share were $28.3 million and $0.76, respectively, in the third quarter of fiscal 2020, reflecting the impact of COVID-19.
  • Comparable restaurant sales at The Cheesecake Factory restaurants decreased 23.3% in the third quarter of fiscal 2020, reflecting the impact of COVID-19.
  • As of today, approximately 90% of the Company’s restaurants across its concepts, including 187 Cheesecake Factory locations, are operating with reopened indoor dining rooms with limited capacity in accordance with local mandates and social distancing protocols.

Headline financials

Total Revenue

$518M

Previous: $587M-11.7%
EPS (adj)

-$0.33

Previous: $0.59-155.9%
Cheesecake Factory Comp Sales

-23.3%

No prior period
Capital Expenditures

-$38.3M

Previous: -$46.7M+18.1%
Free Cash Flow

-$66.6M

Previous: -$30.6M-117.6%
Net Income

-$28.3M

Previous: $16.1M-276.2%
Operating Income

-$34.9M

Previous: $27M-229.3%
Gross Profit

$400M

Previous: $454M-11.9%
Cash & Equivalents

$244M

Previous: $306M-20.4%
Total Assets

$2.83B

Previous: $2.38B+18.7%
R&D Expense

$0.00

Previous: $0.00

Revenue & EPS history

The Cheesecake Factory · Revenue · Quarterly

$518M

Q3 2020-11.7%vs Q3 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 expects to continue to manage through the COVID-19 environment and emerge in a competitively strong position.

Tailwinds

  • The Cheesecake Factory restaurants with reopened indoor dining rooms have recaptured, on average, approximately 90% of prior year annualized sales volumes.
  • Off-premise sales mix is approximately 40%.
  • The company was able to maintain the vast majority of off-premise sales from the second quarter, even with additional restaurants able to reopen indoor dining rooms during the third quarter
  • Continued sales recovery at North Italia
  • Continued sales recovery at the FRC concepts

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 Q3 2020

Historical avgQ3 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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