The Cheesecake Factory Incorporated Earnings: Here’s Why the Stock is Falling Now
The Cheesecake Factory Incorporated (NASDAQ:CAKE) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 3.32%.
The Cheesecake Factory Incorporated Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 3.77% to $0.51 in the quarter versus EPS of $0.53 in the year-earlier quarter.
Revenue: Decreased 2.72% to $464.7 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: The Cheesecake Factory Incorporated reported adjusted EPS income of $0.51 per share. By that measure, the company missed the mean analyst estimate of $0.52. It missed the average revenue estimate of $468.53 million.
Quoting Management: “Following the extremely successful introduction in 2012 of The Cheesecake Factory® restaurants in the Middle East, we are pleased to announce the continuation of our global growth strategy with another proven operator. International development is a significant growth vehicle for us, with excellent opportunities in Mexico, Chile and other Latin American countries. Our agreement with Alsea further strengthens our ability to deliver on our earnings per share growth objectives and enhance shareholder value,” said David Overton, Chairman and CEO.
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