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Friday, Sep 22, 2023

Hurricanes Hit Cheesecake’s Quarterly Performance

Cheesecake Factory Inc. missed Wall Street estimates on earnings and revenue in the third quarter with results suffering the effects of three hurricanes, the company announced Wednesday. The Calabasas restaurant chain reported net income of $26.4 million (56 cents a share) on revenue of $555 million for the quarter ending Oct. 3. That compares to net income of $34.6 million (70 cents) in the same period a year ago. Analysts on average expected earnings of 60 cents on revenue of $566 million, according to Thomson Financial Network. Chief Executive David Overton said the company was affected by Hurricanes Harvey, Irma and Maria that struck the U.S. primarily in Texas, Florida and Puerto Rico. It was fortunate that staff members remained safe and restaurants did not sustain significant damage, he said. “Excluding the significant weather impact to the quarter, our sales and earnings results were in line with our expectations,” Overton added in a prepared statement. “As we look forward, we are continuing to invest in the guest experience, which we believe is contributing to stabilization of our underlying sales trend.” Quarterly results were released after the market closed. Shares in Cheesecake Factory (CAKE) closed up 26 cents, or less than a percent, to $45 on the Nasdaq.

Mark Madler
Mark Madler
Mark R. Madler covers aviation & aerospace, manufacturing, technology, automotive & transportation, media & entertainment and the Antelope Valley. He joined the company in February 2006. Madler previously worked as a reporter for the Burbank Leader. Before that, he was a reporter for the City News Bureau of Chicago and several daily newspapers in the suburban Chicago area. He has a bachelor’s of science degree in journalism from the University of Illinois, Urbana-Champaign.

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