NASDAQ$CAKE

The Cheesecake Factory Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

The Cheesecake Factory reported mixed financial results for the third quarter of fiscal 2023, with revenues increasing but net income showing a slight decrease compared to the previous year.

The Cheesecake Factory Incorporated reported total revenues of $830.2 million for the third quarter of fiscal 2023, an increase from $784.0 million in the same period last year. Net income was $17.9 million, or $0.37 per diluted share. Adjusted net income was $19.0 million, or $0.39 per diluted share, excluding acquisition-related expenses. Comparable restaurant sales at The Cheesecake Factory restaurants increased by 2.4% year-over-year.

  • Total revenues for Q3 2023 reached $830.2 million, up from $784.0 million in Q3 2022.
  • Diluted net income per share was $0.37, with adjusted diluted net income per share at $0.39.
  • Comparable restaurant sales at The Cheesecake Factory restaurants increased 2.4% year-over-year.
  • The company opened two new Cheesecake Factory restaurants during the quarter and repurchased approximately 453,400 shares of its stock.

Headline financials

Total Revenue

$830M

Previous: $784M+5.9%
EPS (adj)

$0.39

Previous: -$0.03+1400.0%
Cheesecake Factory Comp Sales

2.4%

Previous: 1.1%+118.2%
North Italia Comp Sales

8.0%

Previous: 10.0%-20.0%
Cheesecake Factory Openings

1

No prior period
North Italia Openings

2

No prior period
Other FRC Openings

3

No prior period
Other Concept Openings

4

No prior period
Capital Expenditures

-$99.9M

Previous: -$78.1M-28.0%
Free Cash Flow

-$82M

Previous: -$80.5M-1.9%
Net Income

$17.9M

Previous: -$2.4M+848.3%
Operating Income

$19M

Previous: -$2.21M+963.0%
Gross Profit

$81.4M

Previous: $586M-86.1%
Cash & Equivalents

$64M

Previous: $133M-51.9%
Total Assets

$2.78B

Previous: $2.73B+1.6%

Revenue & EPS history

The Cheesecake Factory · Revenue · Quarterly

$830M

Q3 2023+5.9%vs Q3 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

The Cheesecake Factory · $830M total across 4 segments · Q3 2023

  • The Cheesecake Factory
    $628M
  • Other
    $81M
  • North Italia
    $62.4M
  • Other FRC
    $58.6M

Forward guidance

The company expects to continue its unit growth strategy, with plans to open up to 16 new restaurants in fiscal 2023 and 4 to 6 new restaurants in Q1 2024, despite ongoing permitting delays. They anticipate continued positive sales trends and operational stability.

Tailwinds

  • Continued positive sales trends and outperformance of the broader casual dining industry.
  • Resilient consumer demand for high-quality dining experiences.
  • Effective management of restaurants and consistent delivery of food quality, service, and hospitality.
  • Strong demand for new Cheesecake Factory restaurants, underscoring brand appeal.
  • Macroeconomic environment gradually stabilizing and input costs improving, reinforcing belief in future growth.

Headwinds

  • Substantial permitting delays continue to pressure opening timelines for new restaurants.
  • Strategic shifting of some restaurant openings from late 2023 into Q1 2024 due to delays.
  • Experience of delays beyond the company's control in accelerating unit growth.
  • Potential impact of economic, public health, and political conditions on consumer confidence and spending.
  • Risks associated with supply chain disruptions and market instability.

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 2023

Historical avgQ3 2023

-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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