What’s Going on with The Cheesecake Factory?
The Cheesecake Factory (CAKE) officially announced its earnings yesterday, April 28, for the fiscal first quarter of 2021. The Calabasas-headquartered company reported Quarter 1 revenues of $627.4 million, which represents a slight increase compared to the first fiscal quarter of 2020, when the company reported $615.1 million in revenue.
In pre-market activity Thursday, CAKE shares jumped 6.64%, up to $62.94 per share.
What Does This Mean for CAKE?
It’s no secret that COVID-19 has hit the restaurant industry hard over the last year — but affected companies are beginning to see light at the end of the tunnel. “We saw a significant increase in sales at The Cheesecake Factory restaurants and across our portfolio in March as COVID-19 dining restrictions eased and consumer spending generally increased,” David Overton, Chairman and CEO of The Cheesecake Factory, highlighted.
And while there have been bumps in the road, an improvement in sales in 2021 is welcome news — even though relative sales are down 10.4% from the same fiscal quarter of 2019 (pre-COVID).
The Cheesecake Factory, now reopening most of its restaurants with roughly 60% indoor capacity (on average), is hopeful about future dining trends. The company is relying on positive brand recognition, and, as Overton points out, “pent-up demand to dine at our restaurants,” along with a drive toward “strong off-premise sales volumes.”
Cheesecake Factory Inc has a Bullish sentiment reading. Find out what this means for you and get the rest of the rankings on CAKE!
Cheesecake Factory owns and operates restaurants in the United States and Canada under brands that include The Cheesecake Factory, North Italia, and a collection within the Fox Restaurants Concepts subsidiary. The company's international presence, in the Middle East and Mexico, is through licensing agreements with third parties. The company also has a bakery division that produces cheesecakes and other baked products for sale in its restaurants, international licensees, and third-party bakery customers. The company has four operating business segments: The Cheesecake Factory restaurants, North Italia, other FRC, and others. Most of the company's revenue comes from The Cheesecake Factory restaurants segment.
