Cheesecake Factory falls on downbeat Q1 revenue forecast

Cheesecake Factory

23/02/2023 18:40

** Shares of Cheesecake Factory Inc  CAKE.O  fall as much as 7% to $37.98;
stock last down ~5% and set for worst day in a month if current losses hold
    ** The restaurant chain on Wednesday forecast Q1 revenue below analysts'
estimates signaling that consumers are likely to limit spending due to multiple
price hikes and higher costs
    ** Sees Q1 revenue of $850 mln to $880 mln vs est $868.9 mln, per Refinitiv
data
    ** However, CAKE expects 2023 revenue between $3.5 bln and $3.6 bln, above
analysts' expectation of 3.53 bln
    ** Q4 revenue and profit missed estimates hurt by higher operating and labor
costs
    ** At least six brokerages raise PTs on CAKE between the range of $30 and
$46 hoping co's action of raising price will drive 2023 top line forecast
    ** 18 analysts on an average rate the stock "hold"; while the median PT is
$39 - Refinitiv
    ** CAKE has fallen ~5% in the past 12 months
 (Reporting by Anne Florentyna Gnanaraja Sekar in Bengaluru)
 ((AnneFlorentyna.GnanarajaSekar@thomsonreuters.com;))