Shares of The Cheesecake Factory (NASDAQ: CAKE) fell 12.5% in the first hour of trading on July 28. The big news was the company's after-the-market earnings release on July 27. The funny thing is the restaurant owner's fiscal second-quarter 2021 results weren't bad. And yet investors were still downbeat, anyway.
First a look at the numbers. The Cheesecake Factory's second-quarter fiscal 2021 revenue was up nearly 160% compared to the same quarter of 2020. Comparable-store sales were up 150% quarter over quarter and higher by 7.8% compared to the fiscal second quarter of 2019. Given the pandemic backdrop, the comparison to 2020 was an easy one, but it was nice to see the improvement over 2019, which suggests The Cheesecake Factory's long-term growth hasn't been derailed by the global health scare. Earnings were $0.37 per share compared to a pandemic-driven loss of $1.61 in the year ago period. Taking out one-time items, the company's adjusted earnings were $0.80 per share, which beat Wall Street expectations.
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Why The Cheesecake Factory Stock Fell 12.5% at the Open Today