EAT - Why Cheesecake Factory Sales Data Sent Restaurant Stocks Soaring
Shares of Cheesecake Factory (NASDAQ: CAKE) are soaring over 16% on its business update that showed sales recovery, and the data has other restaurant stocks, including Cracker Barrel (NASDAQ: CBRL), BJ's Restaurants (NASDAQ: BJRI), Red Robin (NASDAQ: RRGB), and Brinker international (NYSE: EAT), soaring 10% higher. Here are the important details from Cheesecake Factory.
Cheesecake Factory began reopening locations during the second week of May. Currently about 25% of its total restaurants have reopened with limited capacity per local restrictions and guidelines. More importantly, at least to investors, those reopened restaurants have recaptured 75% of prior-year sales levels on average. Cheesecake Factory's fiscal second quarter through May 31, 2020, shows comparable sales are down roughly 63%. The good news is that management believes it will have about 65% of its dining rooms open with limited capacity by the middle of June, and the company is encouraged by a strong restart.
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