BUZZ-Cheesecake Factory drops after bigger-than-expected quarterly sales decline

Reuters
02/19
BUZZ-Cheesecake Factory drops after bigger-than-expected quarterly sales decline

** Shares of restaurant chain operator Cheesecake Factory CAKE.O fall 7.6% to $59.22 premarket

** Co, after market close on Wednesday, posted comparable restaurant sales decline of 2.2% year-over-year, steeper than analysts' average estimate of a 0.75% fall - data compiled by LSEG

** CEO David Overton cited a more challenging operating environment across the restaurant industry, including weather-related impacts

** Q4 revenue of $961.6 million beat estimates of $949.51 million, while adjusted EPS of $1 beat estimates by a cent

** Raymond James analysts note QTD trends have rebounded back into positive territory; says stock is fairly valued, would remain patient to get a better sense of underlying comparable sales through the spring

** Ten of 23 brokerages rate the stock "buy" or higher, nine "hold" and four "sell" or lower; with a median PT of $63.50

** Stock rose 6.4% in 2025

(Reporting by Neil J Kanatt in Bengaluru)

((Neil.JKanatt@thomsonreuters.com;))

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