DA Davidson Comments on Cheesecake Factory (CAKE) Ahead of Earnings, Sees Upside to Guidance

DA Davidson is maintaining its Neutral rating and $34 price target on shares of Cheesecake Factory (NASDAQ: CAKE) ahead of their Q2 earnings release.

The company is expected to release its Q2 results after the market closes on July 20th. A conference call is scheduled for 5:00 pm following the release.

The firm is currently forecasting EPS of $0.42 while the Street is estimating ~$0.415. The firm's revenue estimate of $436.7 million is ahead of the Street's estimate of $434.8 million. DA Davidson is forecasting that operating margin will fall 50 bps year-over-year to 8.5 percent with comps of 1.9 percent. For fiscal 2011 the firm predicts earnings of $1.68 and comps of 2 percent.

CAKE's guidance calls for Q2 earnings of $0.39-$0.41 with 1.5-3 percent in comps. Fiscal 2011 guidance sees EPS of $1.58-$1.70 with comps of 1-3 percent.

An analyst at DA Davidson notes that investors should focus on whether the menu mix continues to stabilize and does business continue to build during shoulder periods given that their high sales productivity.

For more ratings news on Cheesecake Factory click here and for the rating history of Cheesecake Factory click here.

Shares of Cheesecake Factory closed at $33.42 yesterday.

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