Cheesecake Factory (CAKE) Tops Q2 EPS by 9c; Raises Dividend 20%

Cheesecake Factory (NASDAQ: CAKE) reported Q2 EPS of $0.80, $0.09 better than the analyst estimate of $0.71. Revenue for the quarter came in at $558.9 million versus the consensus estimate of $561.96 million.

The Company’s Board of Directors declared a quarterly cash dividend of $0.24 per share on the Company’s common stock, representing a 20% increase. The dividend is payable on August 23, 2016 to shareholders of record at the close of business on August 10, 2016.

“We again outperformed the casual dining industry, delivering our 26th consecutive quarter of positive comparable sales,” said David Overton, Chairman and Chief Executive Officer. “Capturing operational efficiencies, coupled with a benign commodity cost environment, enabled us to offset industry wage inflation and drive strong margins and earnings growth during the quarter. In addition, we achieved a significant milestone in our international expansion with the opening of the first The Cheesecake Factory restaurant in China, at Disneytown in the Shanghai Disney Resort, under a licensing agreement.”

Overton concluded, “Underscoring our confidence in our industry-leading position and future prospects, we are both expanding our share repurchase authorization and meaningfully increasing our quarterly dividend. We will have doubled the amount of our dividend since first initiating one in fiscal 2012, with this increase. We remain committed to investing in returns-focused growth and returning capital to achieve our targeted returns and increase shareholder value.”

For earnings history and earnings-related data on Cheesecake Factory (CAKE) click here.

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