Cheesecake Factory Inc
Must-Know: McDonald’s Has Got Tough Competition
McDonald’s (MCD) competition includes large international and national food chains as well as regional and local retailers of food products.
Why Investors Are Optimistic about Chipotle’s Q2 2018 Earnings
Chipotle Mexican Grill (CMG) plans to post its Q2 2018 earnings after the market closes on July 26. On July 17, CMG was trading at $452.54.
Why Wedbush Raised Its Price Target for Chipotle
Of the 32 analysts following Chipotle, 25% recommend “buy,” 68.8% recommend “hold,” and 6.3% recommend “sell.”
BTIG Raised Chipotle Mexican Grill’s Target Price
On June 4, Peter Saleh of BTIG raised Chipotle Mexican Grill’s (CMG) target price from $460 to $500 and maintained a “buy” rating.
Why Did Chipotle Stock Price Rise ~4.0% on May 16?
On May 16, John Staszak of Argus upgraded Chipotle Mexican Grill (CMG) from “hold” to “buy.” He increased Chipotle’s target price to $540.
How Much Upside Is Left in Chipotle’s Stock Price?
In the first quarter, Chipotle Mexican Grill (CMG) posted adjusted EPS (earnings per share) of $2.13 on revenue of $1.2 billion.
Chipotle Stock Rose over 10% after Hours on Strong 1Q18 Earnings
Chipotle Mexican Grill (CMG) posted its 1Q18 earnings after the market closed on April 25.
Will Chipotle’s 1Q18 Earnings Boost Its Stock Price?
Chipotle Mexican Grill (CMG) is scheduled to post its 1Q18 earnings after the market closes on April 25.
How Much Upside Could Be Left in Chipotle’s Stock Price
In this series, we’ll look at analysts’ revenue and earnings expectations for Chipotle in 2018.
What Drove Chipotle’s Earnings Margin in 4Q17?
Chipotle Mexican Grill (CMG) posted EBIT (earnings before interest and tax) of $60.03 million for 4Q17, which represents an EBIT margin of 5.4%.
What Drove Chipotle’s Revenue in 4Q17?
In 4Q17, Chipotle Mexican Grill (CMG) posted revenue of $1.11 billion, which represents growth of 7.2% from $1.04 billion in 4Q16.
Chipotle’s Stock Falls Over 10% on Weak Outlook
Chipotle Mexican Grill (CMG) posted its 4Q17 earnings after the market closed on February 6, 2018. In 4Q17, Chipotle posted adjusted EPS (earnings per share) of $1.34 on revenues of $1.11 billion.
Chipotle Stock Rose after Raymond James’s Upgrade
Raymond James’s upgrade of Chipotle Mexican Grill (CMG) on January 19, 2018, appears to have increased investors’ confidence, leading to a rise in Chipotle’s stock price.
Why Did Raymond James Upgrade Chipotle?
On January 19, 2018, Raymond James analysts upgraded Chipotle Mexican Grill (CMG) from an “underperform” to a “market perform” rating.
What Analysts Recommend for Chipotle
Target price As of December 28, 2017, Chipotle Mexican Grill (CMG) was trading at $294.06. On the same day, analysts were expecting the stock to reach $317.26 in the next four quarters, which represents a return potential of 7.9%. Before the announcement of Chipotle’s 3Q17 earnings, analysts had forecast a 12-month target price of $375.46. […]
Analysts’ Earnings Expectations for Chipotle
Analysts’ expectations For the next four quarters, analysts expect Chipotle Mexican Grill (CMG) to post EPS (earnings per share) of $8.54, which represents 51.4% growth from the $5.64 seen in the last four quarters. EPS growth Chipotle’s EPS growth is expected to be driven by revenue growth, EBIT (earnings before interest and tax) margin expansion, a […]
Roark Capital to Bring Buffalo Wild Wings into Its Flock with Arby’s
On November 28, Roark Capital, which owns Arby’s, announced that it plans to acquire Buffalo Wild Wings (BWLD) for $157 per share, or $2.9 billion.
Buffalo Wild Wings Surges 24% on Takeover Rumors
On November 14, 2017, Buffalo Wild Wings (BWLD) stock rose 24.0% following reports that the company has received a takeover bid of $2.3 billion from Roark Capital Group.
What Wall Street Recommends for Chipotle after Weak 3Q17 Earnings
As of October 26, Chipotle Mexican Grill (CMG) was trading at $281.52. On the same day, analysts are expecting the company’s stock price to reach $320.37 in the next 12 months, which represents a return potential of 13.8%.
How Chipotle’s Valuation Compares with Peers
We opted for the forward PE (price-to-earnings) multiple due to the high visibility in Chipotle Mexican Grill’s (CMG) earnings.
Why Chipotle’s Stock Fell after Its 3Q17 Earnings
Chipotle Mexican Grill (CMG) posted its 3Q17 earnings after the market closed on October 24. In 3Q17, the company had posted adjusted EPS (earnings per share) of $1.33 on revenues of $1.13 billion.
Analysts Favor ‘Hold’ Ratings ahead of Chipotle’s Q2 Earnings
Of the 32 analysts that follow Chipotle, 25.0% recommend a “buy,” 65.6% recommend a “hold,” and 9.4% recommend a “sell.”
Why Chipotle Stock Is Seeing Downward Momentum
As of October 3, 2017, Chipotle Mexican Grill (CMG) was trading at $302.99, which represents a fall of 13.1% since the announcement of its 2Q17 earnings on July 25, 2017.
Why BTIG Lowered Its 3Q17 Estimates for Chipotle
On October 3, 2017, Peter Saleh, an analyst at BTIG, lowered his 3Q17 SSSG estimate from 3% to 0.5% and his EPS (earnings per share) estimate from $2.05 to $1.72.
Shake Shack’s Stock Fell on Wedbush Downgrade
2017 continues to be a tough year for Shake Shack. The company’s stock price has fallen 10.8% since the beginning of 2017.
Why Wedbush Downgraded Shake Shack
On September 26, 2017, Wedbush Securities downgraded Shake Shack (SAHK) from “outperform” to “neutral” and lowered its 12-month target price to $36.0 from $40.0.
How Does Shake Shack’s Valuation Compare with Peers?
The introduction of new menu items appears to have increased investors’ confidence, leading to a rise in Shake Shack’s stock price and its valuation multiple.
What Analysts Expect from Shake Shack’s Earnings in Next 4 Quarters
For the next four quarters, analysts are expecting Shake Shack (SHAK) to post EPS (earnings per share) of $0.52.
What’s Driving Shake Shack Stock?
Despite the recent rise in its stock price, Shake Shack stock is down 7.1% since the beginning of 2017.
The Cheesecake Factory’s Valuation Multiple Compared Its Peers?
Analysts expect The Cheesecake Factory’s stock price to reach $48.93 in the next 12 months, which represents a return potential of 19.7%.
Why The Cheesecake Factory Is Trading near Its 52-Week Low
On August 30, 2017, The Cheesecake Factory (CAKE) hit a new 52-week low of $40.22. However, the company closed the day at $40.87.
Chipotle: Analysts’ Revenue Expectations in the Next 4 Quarters
For the next four quarters, analysts expect Chipotle Mexican Grill (CMG) to post revenues of $4.80 billion—growth of 11.3% from the same period last year.
Has Chipotle Stock Bottomed Out?
On August 21, 2017, Chipotle Mexican Grill (CMG) hit a new 52-week low of $304.50. However, the company’s stock price closed the day at $308.59.
Chipotle: Analysts’ Recommendations after Its 2Q17 Earnings
As of July 27, 2017, analysts expect Chipotle’s stock price to reach $400.68 in the next 12 months—a potential return of 26.0% from its current levels.
Chipotle’s EBIT Margins Expanded in 2Q17
During 2Q17, Chipotle Mexican Grill (CMG) posted an EBIT (earnings per share) of $106.73 million, which represents EBIT margins of 9.1%.
Chipotle Hopes to Bounce Back after Strong 2Q17 Earnings
Chipotle Mexican Grill (CMG) posted its 2Q17 earnings on July 25, 2017. The company posted an adjusted EPS of $2.32 on revenues of $1.17 billion.
Chipotle’s Valuation Multiple Falls on New Food Safety Issues
The recent food safety reports at Chipotle have prompted analysts to lower their EPS (earnings per share) estimates for the company for the next four quarters from $8.98 to $8.78.
New Food Safety Issues Driving Chipotle Stock Down
As of July 20, 2017, Chipotle was trading at $356.05, a fall of 9.2% since reports of the food safety issue on July 18.
Shake Shack’s Valuation Multiple Compared to Its Peers
Goldman Sachs downgraded Shake Shack from “neutral” to “sell” and gave a negative same-store sales growth forecast of 2.5% for 2Q17.
What Are Analysts Recommending for Brinker International?
On August 23, 2016, Brinker International’s (EAT) stock was trading at $54. The current price may have already factored in its most recent estimates.
How Does Brinker International Compare to Peers in PE Multiple?
Valuation multiple Investors look at valuation multiples when deciding whether to enter or exit a stock. Valuation multiples are driven by perceived growth, risk and uncertainties, and investor willingness to pay. There are various multiples available to evaluate a stock. We’ll use the PE (price-to-earnings) multiple due to the high visibility of Brinker International’s (EAT) […]
Will Panera Bread’s 2Q16 Results Drive Its Valuation Multiple Up?
There are various multiples available for the evaluation of a stock. We’re choosing the PE ratio due to high visibility in Panera Bread’s earnings.
Comparing Valuation Multiples for Casual Dining Restaurants
As of June 19, 2016, casual dining restaurants were trading at a median PE multiple of 17.9x. That day, Texas Roadhouse (TXRH) was trading higher than our other four companies.
How Cheesecake Factory Came Out Ahead in 1Q16 EPS Growth
With EPS growth of 21.4%, The Cheesecake Factory (CAKE) beat our other four companies in 1Q16. EPS growth was driven mainly by share repurchases of more than $100 million.
Casual Dining Restaurant with the Highest 1Q16 Earnings Margin
In 1Q16, only one of the five casual dining restaurant companies in our series posted a rise in EBIT margins compared to 1Q15.
Which Casual Dining Restaurant Is Best at Expanding Its Business?
To have more control and implement their initiatives faster, casual dining restaurants are focused more on adding company-owned restaurants than franchised restaurants.
Buffalo Wild Wings: Revenue Growth Tops Casual Dining Restaurants
Revenue growth drives earnings and, in turn, raises investor confidence. In 1Q16, casual dining restaurant companies in our series posted a median revenue growth of 6.9%.
The Cheesecake Factory Is Not Just about Desserts
The Cheesecake Factory has positioned itself as an upscale casual dining concept that focuses on providing a distinctive, high-quality dining experience.
Exploring The Cheesecake Factory’s Other Brands
The Cheesecake Factory (CAKE) created the Grand Lux Cafe brand at the request of Venetian Resort Hotel Casino in Las Vegas in 1999.
What’s Driving The Cheesecake Factory’s Revenue Growth?
The Cheesecake Factory earns its revenue from its company-owned restaurant sales, franchisee fees and royalties, and its bakery operations.
What’s Been the Main Driver of CAKE’s Same-Store Sales Growth?
In the last five years, The Cheesecake Factory’s (CAKE) same-store sales growth was in the range of 1%–3%, largely driven by rises in its menu prices.
CAKE’s Average Check Has Increased Year-over-Year
In 1992, when CAKE was listed, its average check size was at $13.6. By the end of 2015, the company’s average check size had increased to $20.8.
How Is The Cheesecake Factory Expanding Its Business?
By the end of 2015, CAKE was operating 188 The Cheesecake Factory restaurants, 12 Grand Lux Cafes, and one RockSugar Pan Asian Kitchen restaurant.
What Is The Cheesecake Factory’s Marketing Strategy?
The Cheesecake Factory (CAKE) is competing in a highly competitive restaurant business, where innovation is absolutely necessary to keep up.
How Has The Cheesecake Factory’s Valuation Fared?
In the last five years, The Cheesecake Factory has traded in the PE range of 12.8x–24.1x. Better-than-expected 1Q15 and 2Q15 results pushed CAKE’s PE higher.
Comparing The Cheesecake Factory’s Performance with Its Peers’
If you had invested $100 in The Cheesecake Factory on May 27, 2011, it would have become $157.8 by May 29, 2016.
Getting to Know The Cheesecake Factory’s Management
A company is greatly impacted by its management’s decisions. In this article, we’ll discuss The Cheesecake Factory’s (CAKE) management and its achievements.
How Did The Cheesecake Factory Expand after Going Public?
In February 1992, The Cheesecake Factory (CAKE) went public by offering 2.3 million shares at $20 per share. It closed its opening day at $27.3 per share.
How Did The Cheesecake Factory Come to Exist?
The origin of The Cheesecake Factory dates back to the 1940s, when Evelyn Overton found a recipe in a local newspaper that inspired her original cheesecake.
A Must-Know Guide to The Cheesecake Factory
The Cheesecake Factory (CAKE) is a casual restaurant chain that was founded in 1978. The California-based company owns and operates 201 restaurants.
How Buffalo Wild Wings’ Stock Performance Stands up to Peers
If you had invested $100 in Buffalo Wild Wings on March 28, 2011, it would have become $274.5 by March 28, 2016—a growth five-year rate of 22.4%.
Can Brinker International’s Same-Store Sales Growth Rise in 3Q16?
To expand its business, Brinker International has partnered with Olo, which provides digital ordering services. The new service is also expected to improve its customer experience.
Casual Dining Restaurants’ Valuations: What’s Priced In?
On March 23, 2016, casual dining restaurants were trading at a median PE multiple of 18.6x. Texas Roadhouse (TXRH) at 24.4x was trading at a higher PE multiple than the others in our comparison.
How Did Shake Shack Expand Its 4Q15 Revenues?
Shake Shack recorded revenues of $51.1 million, with $49.3 million coming from company-owned restaurants sales and $1.7 million from licensed restaurants.
What Are Analysts Recommending for Papa John’s?
As of February 24, 2016, Papa John’s International (PZZA) was trading at $59.60.
Papa John’s Earnings: How Did Its Margins Expand in 4Q15?
In 4Q15, Papa John’s (PZZA) reported EBITDA (earnings before interest, tax, depreciation, and amortization) margins of 12%, compared with 10.3% in 4Q14.
Why Did Papa John’s Revenue Fail to Meet Market Expectations?
Most of Papa John’s revenue comes from domestic company-owned restaurants, domestic commissaries, North American franchising, and international operations.
What Do Analysts Recommend for Jack in the Box?
As of February 8, 2016, Jack in the Box (JACK) was trading at $72.7.
Earnings Overview: A Look into Darden’s Margins
Darden retired a $1 billion debt a year ago. These improvements in costs helped expand Darden’s EBITDA margin by 2.4% and EBIT margin by 3.3% during the quarter.
Brinker International’s Same-Store Sales Growth Expectations
Micro and macro factors can affect a restaurant’s same-store sales growth. For example, lower fuel prices can result in higher drive-through traffic.
Why Bloomin’ Brands is Focusing on Bonefish Grill
Bonefish Grill is the third most important brand for Bloomin’ Brands (BLMN), contributing 14% of the company’s revenue.
Olive Garden: Darden’s Most Important Brand
In 2014, Olive Garden contributed about 58% to Darden’s revenues as of fiscal 2014. Olive Garden gained importance after Darden sold Red Lobster in 2014.
Business Overview of Darden Restaurants
As of 2014, Darden Restaurants owned 1,520 restaurants, excluding more than 700 Red Lobster locations.
Brinker International’s Same-Store Sales Grow An Impressive 3.7%
During 2Q15, Brinker International’s same-store sales grew 3.7%, which, according to the company, included a 1.1% bonus due to the extra day in the quarter.
Brinker International Dines On Strong 2Q15 Earnings
In this series, we’ll take a look at the earnings and strategic changes or tactics that Brinker International management raised during its earnings call.
Brinker International Continues To Benefit From Menu Innovation
Brinker has been focusing on improving its experience and menu, which is a more long-term strategy. Some of these strategies include aggressive menu innovation.
Brinker International May Report Higher Revenues
Brinker International (EAT) earns revenues from its two brands—Chili’s and Maggiano’s. The majority of its restaurants are Chili’s locations.
Understanding Texas Roadhouse’s Marketing Approach
A company can increase its marketing and promotional activities to bring in more customers and obtain operating leverage.
Food Commodity Inflation Affects Texas Roadhouse
Commodity inflation can increase costs of sales. The company can’t always pass on these costs to customers by simply increasing menu prices.
Why Texas Roadhouse Increased Its Menu Prices
The company increased its menu prices by 1.5% in early December of 2013, and in 2012, it increased menu prices by 2.2%.
Texas Roadhouse’s Revenues From Franchise Royalties And Fees
We saw Texas Roadhouse’s (TXRH) revenues and year-over-year revenue growth. A fraction of those revenues comes from royalties and fees from franchises.
A Closer Look At Texas Roadhouse’s Steak-Focused Menu
In the last part of this series, we briefly covered Texas Roadhouse’s (TXRH) steak-focused menu. Let’s look at it in more detail in this article.
Why restaurants are targeting Millennials
As the Millenial Generation enters the labor force and gets jobs and increased purchasing power, they are highly critical of the restaurant industry.
What are casual-dining restaurants?
Casual-dining restaurants Casual-dining restaurants have a relaxed, casual ambiance with a lot of seating. They offer full table service and may also have a wine menu or full bar service. The menu is higher-priced than fast-food restaurants. Olive Garden, under the umbrella of Darden Restaurants (DRI), for example, has a price range of $10 to $20 for […]
Bloomin’ Brands’ 3Q14 revenue growth was better than its peers
Outback Steakhouse accounts for 62% of BLMN’s sales. It had a revenue growth of 11.4% to $669 million—from $585 million in the same quarter in 2013.
Must-know: An analysis of Bloomin’ Brands’ revenue
Overall revenues for Bloomin’ Brands grew 9% to $1,111 million from $1,019 million as of the second quarter ended June 31, 2013.
More same-store sales woes hurt Bloomin’ Brands
Overall, the same-store sales for Bloomin’ Brands were disappointing in the second quarter and will likely cause a sell-off.
Must-know: Darden Restaurants traded sideways after its earnings
Darden Restaurants (DRI) reported its earnings on September 12. The shares began trading at $48.96, which was up 1% from the previous day’s closing of $48.29. The day’s high and low were $49.43 and $47.28, respectively.
Must-know: Why Darden cares about Olive Garden’s same-store sales
Olive Garden is the largest brand under Darden Restaurants in terms of revenues. Almost 99% of Olive Garden restaurants are in the U.S. It serves Italian cuisine with menu items such as pastas, soups, salads, pizzas, flatbread, and desserts.
Why did Darden CEO Clarence Otis step down?
Darden announced at the end of July that chairman and CEO Clarence Otis will step down by the end of the year or when a replacement is found. Starboard CEO Jeffrey Smith said in a statement that Otis’ retirement was long overdue and that “It’s surprising to us that it took this long.”
Why Starboard Value launches proxy fight at Darden
Starboard said it believed that the market price of Darden significantly understated the value of the company’s businesses and real estate assets. It added that its operating margins were well below its peers.
Important food cost issues facing the restaurant industry
Food cost is one of the most important factors contributing to the overall cost of a restaurant business. Some of the major ingredients restaurants use are beef, chicken, cheese, and pork products.
Why marketing and advertising are so important for restaurants
Mainstream channels of marketing—like radio, TV, and print ads—are still common. But many restaurant chains have also used social media to increase their brand presence.
Important pros and cons of the company-operated restaurant model
In the last part of this series, we looked at the franchise model. Let’s now take a look at the company-operated restaurant model.
Important pros and cons of the franchise restaurant model
The most common business models in the restaurant industry are for franchised and company-operated restaurants. Let’s look at the franchise model in closer detail.
Must-know: Why restaurants are so important to investors
According to the USDA, Economic Research Service, the food-away-from-home (or FAFH) category amounted to 42% of household expenditure in 2012.
Darden updates Olive Garden’s menu to target low and high checks
Olive Garden is also rethinking its core menu, which is an important step to take because customers have been fleeing the restaurant in favor of alternatives.
Must-know: 3 important things that could drive Darden up 45%
However, shares do tend to fall following spinoffs, as they’re widely considered an inefficient means of distributing shares to investors.
Must-know: Barington says Darden’s portfolio lacks brand focus
When the Olive Garden and Red Lobster brands started to show slower growth, Darden’s CEO used diversification to promote growth.
Why Darden’s ineffective marketing strategy is hurting profits
In our view, Darden’s inability to achieve lower SG&A expense as a percent of sales is driven by ineffective marketing strategies.