Cheesecake Factory (NASDAQ:CAKE) had a disappointing Tuesday as the company posted its latest quarterly earnings results, which sent shares plummeting as the company missed analysts’ expectations on the earnings front, but did post a revenue beat.
The restaurant chain said that for its second quarter of fiscal 2018, it brought in net income of $28.4 million, or 61 cents per share. When adjusting for asset impairment costs, the company raked in earnings of 65 cents per share for the period.
Analysts were calling for Cheesecake Factory to bring in adjusted earnings of 81 cents per share, according to the average estimate of 11 analysts polled by Zacks Investment Research. The restaurant added that for its second quarter, revenue came in at $593.2 million, which was strong than Wall Street projected in its consensus estimate.
Seven analysts surveyed by Zacks said the were forecasting the company to bring in revenue at an average guidance of $589.9 million. Cheesecake Factory shares have been trending upward all year, rising 16% year-to-date.
However, the company’s underwhelming results are sure to reduce the value of the company’s stock, which was trading at $56.03 per share at the end of trading on Tuesday, before reporting for its period.
CAKE stock was down about 2.1% during regular trading hours on Tuesday in anticipation of the company’s quarterly earnings results. Shares fell a steep 7.4% after hours after the company reported an earnings miss.