Executive Summary
The Cheesecake Factory Incorporated (CAKE) delivered a strong performance in Q4 2024, with total revenues reaching $921 million, representing a year-over-year increase of 1.87%. The company's comparable sales grew 1.7%, outperforming the industry average, driven by successful menu innovations and effective operational management. Notably, the restaurant-level margins reached a seven-year high of 18.4%, demonstrating the company's commitment to operational efficiency and guest satisfaction. Management expressed confidence in sustaining growth momentum, with plans to open 25 new restaurants in 2025. Amidst a competitive landscape, CAKE continues to leverage its strong brand identity and customer base to drive sales and profitability further.
Key Performance Indicators
QoQ: 323.44% | YoY:230.52%
QoQ: 38.37% | YoY:-30.01%
QoQ: 37.21% | YoY:-21.53%
QoQ: 36.51% | YoY:-21.82%
Key Insights
1. Revenue: $921 million (YoY: +1.87%, QoQ: +6.41%)
2. Net Income: $41.154 million (YoY: -21.53%, QoQ: +37.21%)
3. EPS: $0.86 (YoY: -21.82%, QoQ: +36.51%)
4. Gross Profit Margin: 43.4%
5. Operating Margin: 5.06%
6. Cash at end of period: $84.176 million
7. Total Debt: $1.908 billion
8. Free Cash Flow: $53.933 million
9. Return on Equity: 9.28%...
Financial Highlights
1. Revenue: $921 million (YoY: +1.87%, QoQ: +6.41%)
2. Net Income: $41.154 million (YoY: -21.53%, QoQ: +37.21%)
3. EPS: $0.86 (YoY: -21.82%, QoQ: +36.51%)
4. Gross Profit Margin: 43.4%
5. Operating Margin: 5.06%
6. Cash at end of period: $84.176 million
7. Total Debt: $1.908 billion
8. Free Cash Flow: $53.933 million
9. Return on Equity: 9.28%
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
920.96M |
1.87% |
6.41% |
| Gross Profit |
399.96M |
230.52% |
323.44% |
| Operating Income |
46.63M |
-30.01% |
38.37% |
| Net Income |
41.15M |
-21.53% |
37.21% |
| EPS |
0.86 |
-21.82% |
36.51% |
Key Financial Ratios
operatingProfitMargin
5.06%
operatingCashFlowPerShare
$1.97
freeCashFlowPerShare
$1.13
dividendPayoutRatio
32.2%
Management Commentary
- Revenue Growth: "We ended the year on a high note, once again delivering consistent and dependable results with The Cheesecake Factory restaurant comparable sales and traffic outperforming the industry..."
- Menu Innovation: "We are in the midst of rolling out our latest menu, which features more than 20 new items... Our ongoing menu innovation drives a high degree of relevance without the need for discounting."
- Development Plans: "We now expect to open as many as 25 new restaurants in 2025... consumer demand for the distinct high-quality dining experiences reinforces our confidence."
- Operational Efficiency: "Cheesecake Factory restaurant level margins for the fourth quarter were 18.4%, marking the highest level in over 7 years."
"In 2024, we generated record high annual revenues and adjusted earnings per share, while also opening more new restaurants in a single year than ever before in our company's history."
â David Overton, CEO
"Importantly, our industry-leading management and staff retention continued to improve, which we expect to support ongoing operational improvements in many of these areas."
â David Gordon, President
Forward Guidance
For Q1 2025, total revenues are anticipated to be between $920 million and $930 million, considering factors such as weather impacts and expected commodity inflation of low single digits. Management aims for an adjusted net income margin of 4.3% to 4.4%. For the full year, revenue is forecasted to reach approximately $3.8 billion, underpinned by the planned opening of 25 new restaurants and anticipated commodity inflation. Management emphasizes the potential for margin expansion at mature locations, increasing confidence in achieving sustainable growth.