CHEESECAKE FACTORY Reports 4.0% Increase in Total Revenue for Q2 FY2023
August 21, 2023
☀️Earnings Overview
For the second quarter of FY2023, CHEESECAKE FACTORY ($NASDAQ:CAKE) saw its revenue rise by 4.0%, up to USD 866.2 million from the same period of the previous year. Net income experienced an even bigger jump, increasing by 66.3% to USD 42.7 million.
Analysis
GoodWhale has conducted a thorough analysis to evaluate the wellbeing of CHEESECAKE FACTORY. The results of this analysis, shown on a Star Chart, indicate that CHEESECAKE FACTORY has an excellent health score of 8/10 with regard to its cash flows and debt. This suggests that CHEESECAKE FACTORY is able to not only pay off its debt but also fund future operations. Additionally, CHEESECAKE FACTORY is strong in dividend and profitability and medium in asset and growth. Based on this information, GoodWhale has classified CHEESECAKE FACTORY as a ‘gorilla’, or a type of company that has achieved stable and high revenue or earning growth due to its strong competitive advantage. This would make CHEESECAKE FACTORY an attractive investment for investors who are seeking a solid return on their investment. Investors who are interested in companies with strong financials and a strong competitive advantage can look to CHEESECAKE FACTORY as a potential investment. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Cheesecake Factory. More…
| Total Revenues | Net Income | Net Margin |
| 3.41k | 65.03 | 2.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Cheesecake Factory. More…
| Operations | Investing | Financing |
| 175.93 | -130 | -149.11 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Cheesecake Factory. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.77k | 2.44k | 6.36 |
Key Ratios Snapshot
Some of the financial key ratios for Cheesecake Factory are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 15.9% | -13.2% | 1.9% |
| FCF Margin | ROE | ROA |
| 1.4% | 13.2% | 1.5% |
Peers
The company operates in over 200 locations across the country. The company offers a wide variety of menu items, including pizzas, burgers, salads, and desserts. The company also offers a variety of vegan and gluten-free options. The company’s competitors include Papa John’s International Inc, Jollibee Foods Corp, Arcos Dorados Holdings Inc.
– Papa John’s International Inc ($NASDAQ:PZZA)
Papa John’s International, Inc. is engaged in the restaurant business. The Company operates and franchises Papa John’s pizza restaurants in the United States and internationally. As of December 25, 2016, there were 5,082 Papa John’s restaurants operating in 50 states and in 45 countries and territories around the world. The Company operates through five segments: North America Commissaries, North America Company-Owned Restaurants, North America Franchise Restaurants, International Commissaries and International Franchise Restaurants. North America Commissaries segment includes commissary operations that provide food and supplies to Company-owned and franchise Papa John’s restaurants in the United States. North America Company-Owned Restaurants segment includes the results from Company-owned Papa John’s restaurants in the United States.
– Jollibee Foods Corp ($PSE:JFC)
Jollibee Foods Corporation is a Filipino multinational company based in Pasig, Philippines. The company is known for its fast food restaurants, most notably its flagship brand Jollibee. As of December 2020, JFC had a total of 4,326 stores globally. The company also had a market capitalization of $255.29 billion as of 2022. Its return on equity (ROE) was also 11.11%.
The company was founded in 1978 by Tony Tan Caktiong and his family with just two Jollibee stores in Metro Manila. In the early 2000s, JFC acquired the fast-food chains Chowking, Greenwich Pizza, and Red Ribbon. This helped fuel the company’s expansion outside the Philippines. Today, JFC has a strong presence in Southeast Asia, China, North America, and Europe. The company plans to continue its expansion in the coming years.
– Arcos Dorados Holdings Inc ($NYSE:ARCO)
Arcos Dorados Holdings Inc is the world’s largest McDonald’s franchisee. The company operates over 2,100 McDonald’s restaurants in 20 countries in Latin America and the Caribbean. Arcos Dorados is headquartered in Buenos Aires, Argentina.
The company has a market capitalization of 1.58 billion as of March 2022 and a return on equity of 60.96%. The company reported revenues of 3.67 billion in 2020.
Summary
Cheesecake Factory reported solid second quarter earnings for the FY2023, with total revenue increasing 4.0% from the same period last year and net income growing 66.3% year-over-year. This strong performance indicates that the company is in good health and may be an attractive investment opportunity. Investors should consider the company’s financial health, competitive landscape, and strategy as they evaluate their potential returns. With its strong results and attractive fundamentals, Cheesecake Factory could be a good addition to any portfolio.
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