CHEESECAKE FACTORY Reports Second Quarter Earnings Results for FY2023
August 27, 2023
🌥️Earnings Overview
On August 2 2023, CHEESECAKE FACTORY ($NASDAQ:CAKE) reported financial results for the second quarter of FY2023, which ended on June 30 2023. Total revenue for the quarter was USD 866.2 million, a 4.0% rise when compared to the same quarter in the previous year. Net income was USD 42.7 million, an increase of 66.3% year-on-year.
Stock Price
The stock opened at $35.5 and closed at $36.5, up by 1.4% from the previous closing price of $36.0. This increase in stock value indicates that investors are confident in the company’s financial performance. This was attributed to a rise in restaurant sales, increased consumer spending, and an increase in the number of customers served in the quarter.
Overall, the company’s second quarter earnings results indicate that they are on a positive trajectory for FY2023. The increase in stock value and net income bode well for its future prospects, and investors are optimistic that CHEESECAKE FACTORY will continue to deliver strong financial results for the upcoming quarters. Live Quote…
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% |
Analysis
GoodWhale has conducted an analysis of CHEESECAKE FACTORY‘s wellbeing. Our Star Chart showed that CHEESECAKE FACTORY is strong in dividend, profitability, and medium in asset, growth. We also assessed the company’s health score to be 8/10, a positive result that indicates it is capable to sustain future operations in times of crisis. We classified CHEESECAKE FACTORY as a ‘gorilla’, which is a type of company we conclude that achieved stable and high revenue or earning growth due to its strong competitive advantage. Given these findings, investors who are looking for long-term, stable investments may find CHEESECAKE FACTORY to be a good fit. The company offers a reliable dividend, and with its strong competitive advantage it is likely to continue to yield strong returns in the future. Additionally, its high health score suggests it can weather any uncertainties that may arise, making it an even more attractive option. More…
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
The Cheesecake Factory reported positive financial results for the second quarter of FY2023, ending June 30 2023. Revenue for the quarter was up 4.0% year-over-year to a total of USD 866.2 million. Net income increased 66.3%, reaching USD 42.7 million.
This performance indicates that The Cheesecake Factory is in good financial health and is an attractive option for investors looking for a strong dividend yield and solid return on investment potential. The company’s strong fundamentals also suggest that it is well-positioned to weather any economic downturns that may occur in the future.
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