Cheesecake Factory Shares Jump 5% After Surpassing Q3 Earnings Expectations

CALABASAS HILLS, California - The Cheesecake Factory Incorporated (NASDAQ:CAKE) reported third-quarter earnings that exceeded analysts' expectations, causing the company's shares to rise by 5% in after-hours trading.
The restaurant chain announced adjusted earnings of $0.58 per share, surpassing the consensus estimate of $0.48. Revenue came in at $865.47 million. While this figure fell slightly below analysts' projection of $866.13 million, it represented a 4.2% increase compared to the same period last year.
Comparable restaurant sales at The Cheesecake Factory increased by 1.6% compared to the same quarter last year. This marks the fourth consecutive quarter of year-over-year growth in both revenue and profit.
Chairman and CEO David Overton stated, "The ongoing strong performance in comparable sales and customer traffic at The Cheesecake Factory restaurants compared to the overall casual dining sector is evidence that we are gaining market share."
The company opened four new restaurants during the quarter and added three additional locations shortly after the quarter ended, bringing the total number of new restaurants opened since the beginning of the year to 17. Management reiterated plans to open up to 22 new restaurants in fiscal 2024.
In the third quarter, Cheesecake Factory repurchased approximately 29,450 shares for $1.1 million. The board of directors declared a quarterly dividend of $0.27 per share, which will be paid on November 26.
Looking ahead, Overton shared that the company continues to focus on "operational excellence, profitable growth, and long-term, sustainable value creation beyond 2025."