Cheesecake Factory Inc (NASDAQ:CAKE) stock took a hit today after its lowered its outlook in its earnings report for the second quarter of 2017.
Cheesecake Factory Inc says that it is now expecting earnings per share for the full year of 2017 to range from $2.62 to $2.70. The company’s previous guidance had it expecting earnings per share between $2.93 and $3.02 for the year. The lowered outlook is bad news for CAKE stock as it doesn’t meet Wall Street’s earnings per share estimate of $2.82 for the year.
Cheesecake Factory Inc’s earnings report for the second quarter of the year also didn’t help CAKE stock. The restaurant company reported revenue of $569.87 million for the quarter. This is an increase over its revenue of $558.86 million from the same time last year. However, it didn’t reach analysts’ revenue estimate of $576.82 million for the quarter.
Despite the poor revenue and outlook in the second quarter of 2017, Cheesecake Factory Inc’s earnings per share were better than expected. Earnings per share for the quarter came in at 78 cents, which matches what was reported in the second quarter of 2016. This beat out Wall Street’s earnings per share estimate of 69 cents for the quarter.
Net income reported by Cheesecake Factory Inc in the second quarter of the year was $38.17 million. This is down slightly from its net income of $38.59 million from the same period of the previous year.
Cheesecake Factory Inc also announced a quarterly dividend of 29 cents per share. The dividend will be payable to holders of CAKE stock on Aug. 29, 2017. Shareholders must be on record as of Aug. 16, 2017 to receive this dividend.
CAKE stock was down 4% as of noon Thursday and is down 25% year-to-date.
As of this writing, William White did not hold a position in any of the aforementioned securities.