Shares of The Cheesecake Factory (CAKE) surged 5.40% in after-hours trading on Tuesday following the release of its impressive second-quarter fiscal 2025 results. The company's financial performance exceeded analyst expectations, demonstrating robust growth and operational efficiency.
The restaurant chain 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. The company'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.
Cheesecake Factory's impressive results were driven by several factors, including a 1.2% increase in comparable restaurant sales and the successful opening of eight new restaurants during the quarter. 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 ability to maintain healthy consumer demand while improving operational execution has clearly resonated with investors, as reflected in the stock's after-hours surge.