Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Bloomberg Customers

Markets & Finance

Cheesecake Factory Sounds a Sour Note

The shares dropped Friday after the company disappointed market players with its earnings forecast

The Cheesecake Factory's (CAKE) share price fell on Dec. 1, after the restaurant chain operator gave quarterly results and guidance.

The Calabasas Hills (Calif.)-based company has been late on its filings, as the Securities and Exchange Commission is probing its accounting of stock options. Cheesecake Factory finally said Nov. 30 that it had second quarter earnings per share of 30 cents compared to 29 cents during the same period last year. Its third quarter earnings per share amounted to 23 cents compared to 27 cents EPS last year.

"While it has been a challenging year for many of us in the restaurant industry, I am encouraged by recent trends and pleased with the level and quality of service we are providing, the positive guest response to our most recent menu change and the success of our recent openings," said David Overton, Cheesecake Factory CEO, in a press release.

The next day, Cheesecake Factory added that it expects to announce diluted net income per share during the fourth quarter ended Jan. 2 that ranges between 22 cents and 24 cents. The mean analyst estimate had been for 26 cents per share, according to the San Francisco research firm StarMine, which aggregates data from Thomson Financial.

Cheesecake Factory also said it expects total revenues in the range of $351 million to $354 million. The mean analyst estimate had been for $356.5 million revenue, according to StarMine.

Investors sold the stock 6.8% to $25.85 per share in afternoon trading on the Nasdaq.

blog comments powered by Disqus