Will These Numbers from Cheesecake Factory Be Good Enough for You?

Cheesecake Factory (Nasdaq: CAKE  ) is expected to report Q2 earnings on July 24. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Cheesecake Factory's revenues will grow 4.2% and EPS will grow 11.8%.

The average estimate for revenue is $473.7 million. On the bottom line, the average EPS estimate is $0.57.

Revenue details
Last quarter, Cheesecake Factory recorded revenue of $463.0 million. GAAP reported sales were 6.3% higher than the prior-year quarter's $435.8 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $0.47. GAAP EPS of $0.47 for Q1 were 27% higher than the prior-year quarter's $0.37 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 42.7%, 20 basis points better than the prior-year quarter. Operating margin was 8.1%, 120 basis points better than the prior-year quarter. Net margin was 5.5%, 70 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $1.91 billion. The average EPS estimate is $2.16.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 516 members out of 646 rating the stock outperform, and 130 members rating it underperform. Among 209 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 193 give Cheesecake Factory a green thumbs-up, and 16 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cheesecake Factory is outperform, with an average price target of $36.63.

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