Shares of Cheesecake Factory (CAKE) surged 5.24% in after-hours trading on Tuesday following the release of its impressive second-quarter fiscal 2025 results. The restaurant chain's financial performance exceeded analyst expectations, demonstrating robust growth and operational efficiency in a competitive market.
The company reported quarterly revenue of $955.825 million, surpassing the analyst consensus estimate of $948.4 million. This represents a 5.73% increase compared to the same period last year. Cheesecake Factory's adjusted earnings per share (EPS) came in at $1.16, significantly beating the analyst estimate of $1.05 by 10.16%. The strong EPS performance marks a 6.42% increase from the $1.09 per share reported in the same quarter of the previous year.
David Overton, Chairman and CEO, highlighted the company's strong performance, noting record-high revenue, improved margins, and profitability exceeding their guidance. The company's growth strategy appears to be on track, with eight new restaurants opened during the quarter and plans to open up to 25 new locations in fiscal 2025. Additionally, comparable restaurant sales at Cheesecake Factory restaurants saw a year-over-year increase of 1.2%, indicating healthy consumer demand and efficient operational execution. Investors seem encouraged by the company's ability to maintain momentum in a challenging restaurant industry environment.