Cheesecake Factory Q4 Revenue Tops Estimates at $961.6M with 25 New Openings
The Cheesecake Factory delivered Q4 revenue of $961.6 million, beating consensus of $948.9 million, while comparable restaurant sales declined 2.2% year-over-year. The company opened 25 new locations, achieved record annual revenue, and saw margins and adjusted EPS at the high end of guidance through improved labor productivity.
1. Q4 Revenue Beats Estimates
The Cheesecake Factory reported fiscal fourth-quarter revenue of $961.6 million, surpassing the consensus estimate of $948.9 million, driven by menu pricing and increased traffic in core units.
2. Comparable Sales and Restaurant Openings
Comparable restaurant sales declined 2.2% year-over-year, while the company added 25 new restaurant openings during the quarter, underpinning record annual revenue.
3. Margin Expansion and EPS Outlook
Enhanced labor productivity, wage management and employee retention efforts supported margin expansion and positioned adjusted diluted EPS at the higher end of the company’s guidance.
4. Analyst Price Target Increases
Following the earnings release, Citi raised its price target to $72 per share and Mizuho lifted its target to $70, with both firms maintaining bullish ratings on the stock.