Shares of Cheesecake Factory (CAKE) surged 5.40% in after-hours trading on Tuesday following the release of its second-quarter fiscal 2025 results, which exceeded analyst expectations. The restaurant chain reported strong earnings and revenue growth, demonstrating resilience in a competitive market.
The company's Q2 revenue rose to $955.8 million, surpassing the consensus estimate of $948.4 million from 17 analysts. Adjusted earnings per share (EPS) came in at $1.16, beating the expected $1.05. This represents a 6.42% increase from the same period last year. Notably, comparable restaurant sales at Cheesecake Factory restaurants grew by 1.2% year-over-year, indicating healthy consumer demand.
David Overton, Chairman and CEO, highlighted the company's strong performance, citing record-high revenue, improved margins, and profitability that exceeded 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. Investors seem encouraged by the company's ability to maintain momentum and execute strongly in a challenging restaurant industry environment.