S&P 500   3,585.62
DOW   28,725.51
QQQ   267.26
Want to Increase Your Conversion Rates? This Is the Biggest Threat to Your Success.
Can A.I. Launch You into Your Next Trading Frontier? (Ad)pixel
Russia accused of 'kidnapping' head of Ukraine nuclear plant
EU chief: New Greece-Bulgaria gas pipeline 'means freedom'
How the Wealthy Elite are Picking Stocks (Ad)pixel
Danish Energy Agency says Nord Stream 2 gas pipeline under Baltic Sea appears to have stopped leaking gas
UK train strikes and energy hikes add to a week of turmoil
How the Wealthy Elite are Picking Stocks (Ad)pixel
Russia blindfolds, detains Ukraine nuclear plant chief
NIH to fund unproven ALS drugs under patient-backed law
S&P 500   3,585.62
DOW   28,725.51
QQQ   267.26
Want to Increase Your Conversion Rates? This Is the Biggest Threat to Your Success.
Can A.I. Launch You into Your Next Trading Frontier? (Ad)pixel
Russia accused of 'kidnapping' head of Ukraine nuclear plant
EU chief: New Greece-Bulgaria gas pipeline 'means freedom'
How the Wealthy Elite are Picking Stocks (Ad)pixel
Danish Energy Agency says Nord Stream 2 gas pipeline under Baltic Sea appears to have stopped leaking gas
UK train strikes and energy hikes add to a week of turmoil
How the Wealthy Elite are Picking Stocks (Ad)pixel
Russia blindfolds, detains Ukraine nuclear plant chief
NIH to fund unproven ALS drugs under patient-backed law
S&P 500   3,585.62
DOW   28,725.51
QQQ   267.26
Want to Increase Your Conversion Rates? This Is the Biggest Threat to Your Success.
Can A.I. Launch You into Your Next Trading Frontier? (Ad)pixel
Russia accused of 'kidnapping' head of Ukraine nuclear plant
EU chief: New Greece-Bulgaria gas pipeline 'means freedom'
How the Wealthy Elite are Picking Stocks (Ad)pixel
Danish Energy Agency says Nord Stream 2 gas pipeline under Baltic Sea appears to have stopped leaking gas
UK train strikes and energy hikes add to a week of turmoil
How the Wealthy Elite are Picking Stocks (Ad)pixel
Russia blindfolds, detains Ukraine nuclear plant chief
NIH to fund unproven ALS drugs under patient-backed law
S&P 500   3,585.62
DOW   28,725.51
QQQ   267.26
Want to Increase Your Conversion Rates? This Is the Biggest Threat to Your Success.
Can A.I. Launch You into Your Next Trading Frontier? (Ad)pixel
Russia accused of 'kidnapping' head of Ukraine nuclear plant
EU chief: New Greece-Bulgaria gas pipeline 'means freedom'
How the Wealthy Elite are Picking Stocks (Ad)pixel
Danish Energy Agency says Nord Stream 2 gas pipeline under Baltic Sea appears to have stopped leaking gas
UK train strikes and energy hikes add to a week of turmoil
How the Wealthy Elite are Picking Stocks (Ad)pixel
Russia blindfolds, detains Ukraine nuclear plant chief
NIH to fund unproven ALS drugs under patient-backed law

Cheesecake Factory is Reversing Higher

Cheesecake Factory is Reversing Higher Restaurant operator Cheesecake Factory (NASDAQ: CAKE) stock spiked on its Q4 2021 earnings only to plunge with the benchmark indexes sell-off. The operator of restaurants Cheesecake Factory, North Italia, Flower Child, and Fox Restaurant Concepts (FRC) including Grand Lux Café and Rock Sugar has seen sales rise above the pre-pandemic levels of 2019. The Omicron surge in the final 2 weeks of the quarter created softer sales causing the Company to miss bottom-line estimates for the Q4 2021 period. Supply chain challenges and inflationary pressures are causing the Company to raise its new menu prices 3.25% in 2022. The brands continue to gain traction as the Company sets its sights to open 17 to 19 new restaurants this year. Shares are trading at just 12X forward earnings. Prudent investors seeking a value play in the dining and hospitality sector can look for opportunistic pullbacks in shares of Cheesecake Factory.

Q4 Fiscal Year 2021 Earnings Release

On Feb. 16, 2022, Cheesecake Factory released its fourth-quarter fiscal 2021 results for the quarter ending December 2021. The Company reported a non-GAAP diluted earnings-per-share (EPS) of $0.49, missing analyst estimates by $0.58 by (-$0.08). Revenues rose 40.1% year-over-year (YoY) to $776.69 million, beating analyst estimates for $774.52 million. Same store sales rose 33.8% YoY and 7% compared to 2019. The Company reported $29.1 million in pre-tax charges of asset impairments and tax reserves. Comp sales for fiscal Q1 2022 to date through February 15 increased 24.3% driven by off-premises sales mix of 30%.


CEO Comments

Cheesecake Factory CEO David Overton commented, “We posted another quarter of solid sales performance across our brands, continuing to outperform the broader casual dining industry and recording record revenues despite the surge in COVID-19 cases from the Omicron variant towards the end of the year,” said David Overton, Chairman and Chief Executive Officer. “Specifically, fourth quarter comparable sales at The Cheesecake Factory were running at 10.6% going into the third week of December relative to fiscal 2019. We believe our operating results would have been in line with expectations but for the softer sales trend during the last two weeks of the quarter which coincided with the Omicron surge.”

Conference Call Takeaways

CEO Overton commended his restaurant operators for sequentially improved efficiencies, workforce retention and labor productivity. The earnings miss stemmed from the softer sales in the last 2 weeks of the quarter due to the Omicron surge. The first quarter of 2022 started off very strong as same-store sales are up 24.3% through February 15, 2022. However, the current environment is dynamic in terms of managing the effects of supply chain, government and local permitting approvals influencing the timing of openings. The Company plans to open 17 to 19 new restaurant locations in 2022 including Flower Child, North Italias and FRC restaurants. The Company is ready to rollout its new Cheesecake Factory menu which factors in a 3.25% price increase that will drive a 4.75% YoY menu price increase.

Cheesecake Factory is Reversing Higher

CAKE Price Trajectories

Using the rifle charts on the weekly and daily time frames provides a precision view of the landscape for CAKE stock. The weekly rifle chart uptrend peaked at the $44.71 Fibonacci (fib) level. Shares collapsed quickly after earnings towards the $33.28 fib before staging a bounce attempt. The weekly rifle chart uptrend is forming a potential reversal on the abrupt collapse after rejecting the weekly 200-period moving average (MA) at $42.38. The weekly 5-period MA is stalled at $39.87 followed by the 15-period MA at $38.97. Shares fell under the market structure low (MSL) breakout trigger at $38.07. The weekly 50-period MA overlaps with the weekly upper Bollinger Bands (BBs) at $47.65. The weekly lower BBs are expanding at $32.35. The daily rifle chart is forming a breakdown as the 5-period MA at $40.03 falls through the 15-period MA at $40.99 and through the 50-period MA at $38.88. The daily lower BBs sit at $35.63. Prudent investors can watch for opportunistic pullbacks levels at the $35.46 fib, $33.28 fib, $32.40, $31.05 fib, $30.19 fib, $29.19 fib, $27.46, and the $26.05 fib level. Upside trajectories range from the $42.79 fib up towards the $52.96 fib level.

 

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Cheesecake Factory (CAKE)
3.0709 of 5 stars
$29.28-2.3%3.69%17.96Hold$40.00
Compare These Stocks  Add These Stocks to My Watchlist 

Should you invest $1,000 in Cheesecake Factory right now?

Before you consider Cheesecake Factory, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Cheesecake Factory wasn't on the list.

While Cheesecake Factory currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

Jea Yu

About Jea Yu

Contributing Author: Trading Strategies

With over 20 years of active participation and analysis of the US equities, options and futures markets, Mr. Yu brings fresh insights into the workings of the financial markets. He has published four books by esteemed publishers McGraw-Hill, John Wiley & Sons, Marketplace Books and Bloomberg Press. His brainchild, the Underground Trader, was voted Forbes Best of the Web for four consecutive years under the active trader category. He has been a featured speaker all over the country at various expos and seminars who enjoys a standing-room-only reception in the largest convention halls from New York to Las Vegas. He has been quoted and featured in USA Today, Wall Street Journal, Traders Magazine and the Financial Times and various trade publications like Stocks & Commodities, Active Trader and Online Investor. Mr. Yu has a B.A. in Liberal Arts and minor in Business Administration from the University of Maryland.
Contact Jea Yu via email at JeaYu21@gmail.com.
Free Email Newsletter

Complete the form below to receive the latest headlines and analysts' recommendations for your stocks with our free daily email newsletter:

Most Read This Week

Recent Articles

Search Headlines:

Latest PodcastFed Raises Rates: 3 Stocks to Watch Newmont Mining, Walmart, AMC

Axel Merk, President and CIO of Merk Investments has three very different stocks he frames within the current market and economic conditions.

MarketBeat Resources

Premium Research Tools

MarketBeat All Access subscribers can access stock screeners, the Idea Engine, data export tools, research reports, and other premium tools.

Discover All Access

Market Data and Calendars

Looking for new stock ideas? Want to see which stocks are moving? View our full suite of financial calendars and market data tables, all for free.

View Market Data

Investing Education and Resources

Receive a free world-class investing education from MarketBeat. Learn about financial terms, types of investments, trading strategies and more.

Financial Terms
Details Here
MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau MarketBeat is rated as Great on TrustPilot

© American Consumer News, LLC dba MarketBeat® 2010-2022. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | contact@marketbeat.com | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Privacy Policy | Do Not Sell My Information | RSS Feeds

© 2022 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see Barchart's disclaimer.