2023-05-10 16:27:10 ET
Cheesecake Factory ( NASDAQ: CAKE ) reported comparable sales increased 5.7% year-over-year in Q1 vs. +7.1% consensus and were up 14.9% relative to the pre-pandemic fiscal year of 2019.
Cost and expenses were 96.1% of sales during the quarter vs. 96.4% last year. Food and beverage costs came in at 23.8% of sales vs. 23.7% last year and labor expenses moderated to 36.0% of sales from 37.3% last year.
"We delivered a solid start to the year with revenue finishing in-line with our expectations and adjusted net income margin at the high end of our guidance range, noted Cheesecake Facotry CEO said David Overton.
At the end of the quarter, the restaurant company had total available liquidity of approximately $355M, including a cash balance of approximately $116M and availability on its revolving credit facility of $239M. Total debt outstanding was $280.0M.
On the development front, Cheesecake Factory ( CAKE ) said it continues to expect to open as many as 20 to 22 new restaurants in fiscal 2023, including as many as five to six The Cheesecake Factory restaurants, five to six North Italia restaurants, and as many as ten FRC restaurants, including three to four Flower Child locations. In addition, CAKE expects two to three The Cheesecake Factory restaurants to open internationally under licensing agreements.
Shares of Cheesecake Factory ( CAKE ) gained 0.40% in postmarket trading after a 1.53% dip during the regular session.
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Cheesecake Factory misses comparable sales estimates with its Q1 report