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Restaurant Earnings Roundup: BOJA, CAKE, DENN, SHAK

We’re over halfway through Q3 earnings season, and today, some big names in the restaurant industry reported their quarterly financial results. Year-to-date, the Retail-Restaurants industry has gained about 10.7% compared to the S&P 500’s return of 16.5%, and currently sits in the bottom 13% of all industries ranked on the Zacks Industry Rank.

However, it’s been a strong earnings season overall so far, reflecting a trend that’s been in place for the past few quarters now. Let’s take a look at four restaurant companies making headlines:

Bojangles BOJA

Quick-service chicken restaurant Bojangles reported total revenues of $133.4 million, which matched the Zacks Consensus Estimate and increased just 0.2% year-over-year. System-wide comparable restaurant sales decreased 2.2%, while company-operated comparable restaurant sales fell 3.3% and franchised comps declined 1.5%. Earnings were 18 cents per diluted share, which beat our consensus estimate of 17 cents per share. Net income came in at $7 million, down from $10 million reported in the prior year fiscal quarter.

BOJA is currently a #4 (Sell) on the Zacks Rank, and is flat in after-hours trading.

The Cheesecake Factory CAKE

For Q3, the cheesecake guru reported total revenues of $555.4 million, lagging way behind the Zacks Consensus Estimate of $562.5 million. Comparable restaurant sales declined 2.3%, including a roughly 0.8% negative impact from Hurricanes Harvey, Irma, and Maria. Earnings were 56 cents per diluted share, which also missed our consensus estimate; net income was $26.4 million for the quarter.

CAKE is currently a #4 (Sell) on the Zacks Rank, and is down about 2% in after-hours trading.

Denny’s DENN

Denny's saw total operating revenues for Q3 come in at $132.4 million, missing the Zacks Consensus Estimate of $134.3 million. Domestic system-wide same-store sales increased 0.6%, which included 0.6% growth at company restaurants and 0.6% growth at domestic franchise restaurants. Earnings were 13 cents per diluted share, also missing our consensus estimate of 14 cents; net income was $9.3 million during the quarter.

DENN is a #3 (Hold) on the Zacks Rank, and is flat in after-hours trading.

Shake Shack SHAK

Fast-casual burger chain Shake Shack reported total revenues of $94.6 million, matching the Zacks Consensus Estimate of $94.7 million and increasing almost 27% year-over-year. Same Shack sales decreased 1.6%. Earnings came in at 19 cents per diluted share (adjusted earnings were 17 cents per fully exchanged and diluted share), surpassing our consensus estimate of 15 cents per share; net income increased 15.9% to $7.9 million during the third quarter.

SHAK is a #3 (Hold) on the Zacks Rank, and is up about 6.7% in after-hours trading.

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The Cheesecake Factory Incorporated (CAKE): Free Stock Analysis Report
Denny's Corporation (DENN): Free Stock Analysis Report
Shake Shack, Inc. (SHAK): Free Stock Analysis Report
Bojangles', Inc. (BOJA): Free Stock Analysis Report
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