The Cheesecake Factory Incorporated (NASDAQ: CAKE)
Cheesecake announced their second quarterly earnings after the market closed on Tuesday July 31st, 2018.
Shares which closed the regular training session at $56.03 which was down $1.17 on the day wound up closing at $51.05 or down $4.98 which equals -8.89% to the downside.
The company reported earnings $0.61 per share which Compares with $0.78 per share in the same period one year ago.
Adjusted earnings per share came in at $0.65 and analyst estimates had been for $0.81 per share. Revenues came in at $569 million and had been estimated to be $592 million.
The company’s shares have a 26% short interest float, meaning a little more than 1 in 4 investors or traders have sold the shares short with the hopes to buy them back cheaper at a later date.
Well it seems that percentage of people all right in their analysis and will be able to buy the shares back much lower tomorrow if they so wish.
Company Comments
David Overton, Chairman and Chief Executive Officer had this to say to investors after the numbers came out:
“Comparable sales at The Cheesecake Factory and core restaurant operating performance were in line with our expectations during the second quarter. However, $4.6 million in higher group medical insurance costs year-over-year and $4.5 million in increased legal expenses impacted our bottom line results this quarter. We generated over $65 million in operating cash flow during the quarter. The consistency of our cash flow enabled us to increase our dividend for the sixth consecutive year. We continue to execute a balanced capital allocation strategy, investing in long-term growth while returning substantially all of our free cash flow to shareholders through our dividend and share repurchase program.”
Company Profile
The Cheesecake Factory Incorporated operates restaurants in the United States.
The company produces cheesecakes and other baked products for own restaurants and international licensees, as well as external foodservice operators, retailers, and distributors.
As of February 28, 2018, it operated 214 company-owned restaurants, including 199 restaurants under The Cheesecake Factory brand; 13 restaurants under the Grand Lux Cafe brand; and 2 restaurants under the RockSugar Southeast Asian Kitchen brand, as well as 20 The Cheesecake Factory branded restaurants under licensing agreements internationally.
The company was founded in 1972 and is headquartered in Calabasas, California.-YahooFinance