CAKE

The Cheesecake Factory Incorporated CAKE is scheduled to report third-quarter 2026 results on Oct. 27. CAKE's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 10.1%. The Zacks Consensus Estimate for third-quarter earnings per share (EPS) is pegged at 92 cents, indicating a rise of 35.3% from 68 cents reported in the year-ago quarter. The Cheesecake Factory Incorporated price-eps-surprise | The Cheesecake Factory Incorporated Quote For revenues, the consensus mark is pegged at $998.5 million. The metric suggests a rise of 10.1% from the year-ago quarter's figure. Let us take a look at how things might have shaped up in the quarter to be reported. Cheesecake Factory is likely to have benefited from sustained sales momentum and continued positive guest traffic trends in the third quarter of 2026. The company entered the quarter with strong demand at its flagship Cheesecake Factory restaurants, supported by disciplined operational execution and effective customer engagement initiatives. Management indicated that the stronger comparable sales trends witnessed toward the end of the second quarter were expected to continue into the third quarter. Emphasis on menu innovation, the Cheesecake Rewards program and increasing digital engagement are likely to have aided the company's performance in the third quarter. The successful launch of its mobile app, alongside personalized promotions and targeted social media campaigns, is expected to have supported customer acquisition, engagement and visit frequency. Meanwhile, the introduction of new Bites, Bowls and other menu offerings, with an updated menu rolling out through September, is likely to have strengthened the brand's value proposition and supported traffic growth. Management expected menu pricing to remain slightly below 3% during the quarter. The company's diversified restaurant portfolio is also expected to have supported performance. Flower Child is likely to have maintained strong momentum, benefiting from demand for its health-focused menu, accessible pricing and differentiated dining experience. Continued traffic growth and consistent off-premise demand are expected to have supported the concept's sales performance. Meanwhile, restaurant expansion across its portfolio is likely to have contributed incremental revenues. The company planned six restaurant openings during the third quarter, supporting its broader expansion strategy. Operational efficiencies and improving restaurant productivity are expected to have supported profitability. Stronger sales volumes, disciplined labor management and improved food efficiency are likely to have provided operating leverage. CAKE expects third-quarter 2026 revenues between $980 million and $990 million, with an adjusted net income margin of approximately 4.3% at the midpoint of the revenue range. However, higher marketing investments, commodity inflation and wage pressures are expected to have partly offset these benefits. Management anticipated low-single-digit commodity inflation and low-to-mid-single-digit labor inflation during the third quarter. Our model predicts total costs and expenses in the third quarter to rise 7.3% year over year to $933.4 million. Our proven model does not conclusively predict an earnings beat for Cheesecake Factory this time. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. However, that's not the case here. Earnings ESP for CAKE: Cheesecake Factory currently has an Earnings ESP of -0.34%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. Cheesecake Factory's Zacks Rank: The company currently has a Zacks Rank #2. Here are some stocks from the Zacks Retail-Wholesale sector, which, according to our model, have the right combination of elements to post an earnings beat this reporting cycle. Starbucks Corporation SBUX currently has an Earnings ESP of +0.24% and a Zacks Rank of 2. You can see the complete list of today's Zacks #1 Rank stocks here. In the to-be-reported quarter, SBUX's earnings are expected to increase 40.4% year over year. SBUX's earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, with the average surprise being 8.4%. Sweetgreen, Inc. SG has an Earnings ESP of +4.26% and a Zacks Rank of 2 at present. In the to-be-reported quarter, Sweetgreen's earnings are expected to register a 3.7% year-over-year decline. SG's earnings missed estimates in each of the trailing four quarters, with the average miss being 43%. Brinker International, Inc. EAT currently has an Earnings ESP of +0.59% and a Zacks Rank of 3. In the to-be-reported quarter, Brinker earnings are expected to register a 29% year-over-year increase. EAT's earnings surpassed estimates in all of the trailing four quarters, with the average surprise being 6.2%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Cheesecake Factory Incorporated (CAKE) : Free Stock Analysis Report Starbucks Corporation (SBUX) : Free Stock Analysis Report Brinker International, Inc. (EAT) : Free Stock Analysis Report Sweetgreen, Inc. (SG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Wall Street expects a year-over-year increase in earnings on higher revenues when Brinker International (EAT) reports results for the quarter ended September 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on October 28, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy is expected to post quarterly earnings of $2.49 per share in its upcoming report, which represents a year-over-year change of +29%. Revenues are expected to be $1.45 billion, up 7.3% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.67% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Brinker International, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.59%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination indicates that Brinker International will most likely beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Brinker International would post earnings of $3.07 per share when it actually produced earnings of $3.07, delivering no surprise. Over the last four quarters, the company has beaten consensus EPS estimates three times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Brinker International appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Another stock from the Zacks Retail - Restaurants industry, Cheesecake Factory (CAKE), is soon expected to post earnings of $0.92 per share for the quarter ended September 2026. This estimate indicates a year-over-year change of +35.3%. Revenues for the quarter are expected to be $998.45 million, up 10.1% from the year-ago quarter. The consensus EPS estimate for Cheesecake Factory has been revised 6.2% higher over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -0.34%. This Earnings ESP, combined with its Zacks Rank #2 (Buy), makes it difficult to conclusively predict that Cheesecake Factory will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Brinker International, Inc. (EAT) : Free Stock Analysis Report The Cheesecake Factory Incorporated (CAKE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Wall Street expects a year-over-year increase in earnings on higher revenues when Cheesecake Factory (CAKE) reports results for the quarter ended September 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on October 27, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This restaurant chain is expected to post quarterly earnings of $0.92 per share in its upcoming report, which represents a year-over-year change of +35.3%. Revenues are expected to be $997.13 million, up 9.9% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 4.39% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Cheesecake Factory, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.34%. On the other hand, the stock currently carries a Zacks Rank of #2. So, this combination makes it difficult to conclusively predict that Cheesecake Factory will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Cheesecake Factory would post earnings of $1.17 per share when it actually produced earnings of $1.44, delivering a surprise of +23.08%. Over the last four quarters, the company has beaten consensus EPS estimates four times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Cheesecake Factory doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Cheesecake Factory Incorporated (CAKE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Cheesecake Factory (CAKE), which belongs to the Zacks Retail - Restaurants industry, could be a great candidate to consider. This restaurant chain has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 12.51%. For the most recent quarter, Cheesecake Factory was expected to post earnings of $1.17 per share, but it reported $1.44 per share instead, representing a surprise of 23.08%. For the previous quarter, the consensus estimate was $1.03 per share, while it actually produced $1.05 per share, a surprise of 1.94%. Thanks in part to this history, there has been a favorable change in earnings estimates for Cheesecake Factory lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank. Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Cheesecake Factory has an Earnings ESP of +5.75% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #2 (Buy), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on October 27, 2026. Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric. Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate. Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Cheesecake Factory Incorporated (CAKE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Domino's Pizza, Inc. DPZ is scheduled to report third-quarter fiscal 2026 results on Oct. 13, before the opening bell. In the last reported quarter, the company reported a negative earnings surprise of 1%. DPZ's earnings topped the consensus mark in one of the trailing four quarters and missed on the remaining three occasions, the average surprise being negative 0.6%. The Zacks Consensus Estimate for earnings is pegged at $4.33 per share, which implies 6.1% growth from the prior-year quarter. In the past seven days, estimates for earnings have declined. Domino's Pizza Inc price-eps-surprise | Domino's Pizza Inc Quote The consensus mark for revenues is pegged at $1.17 billion, indicating growth of 1.6% from the year-ago level. Domino's third-quarter fiscal 2026 revenues are likely to have benefited from stronger order growth, value-focused promotions and continued expansion through aggregators. The company has adjusted its second-half marketing calendar, with the revised Best Deal Ever promotion adding Stuffed Crust and a new pizza product planned for the fiscal third quarter. These initiatives are expected to have supported customer traffic and create additional ordering occasions. The company also expects the ticket headwind from the prior-year Stuffed Crust promotion to ease in the third quarter. The lower impact from the prior-year promotional mix is likely to support a better balance between order growth and ticket. For the fiscal third quarter, our model predicts comps at the U.S. company-owned and franchise stores to grow 3.4% and 5.3%, respectively, year over year. Also, we expect international comps to decrease 0.1% year over year. However, competitive pressure and a challenging macroeconomic environment are likely to have remained headwinds. The company expects competitive pressures to continue, while macroeconomic and geopolitical uncertainty might have weighed on international operations. Our model predicts total U.S. store revenues to decline 8.4% from the year-ago levels to $340.2 million. The decline is likely to have reflected the impact of refranchising, while underlying demand is expected to have benefited from order growth, value-focused promotions and continued expansion of the aggregator channel. The company's focus on driving order counts and adding new stores also supports the underlying U.S. business. Per our model, supply-chain revenues are likely to rise 6.2% from the prior-year actuals to $740.1 million. International Franchise Royalties and Fees are expected to increase 2.9% year over year to $80.9 million. Domino's fiscal third-quarter earnings are likely to have benefited from higher order counts and continued growth in the aggregator channel. The company has also been focused on maintaining profitable growth in the aggregator business, with pricing designed to protect franchisee profitability. The improved ticket mix in the fiscal third quarter is likely to have provided additional support to profitability. Our model forecasts fiscal third-quarter EBITDA and operating margins to expand 50 basis points and 30 basis points, respectively, to 21.7% and 19.8%. Our proven model predicts an earnings beat for Domino's this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is exactly the case here. DPZ's Earnings ESP: Domino's has an Earnings ESP of +0.19%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. Domino's Zacks Rank: The company carries a Zacks Rank #3 at present. Here are some other stocks from the Zacks Retail-Wholesale you may consider, as our model shows that these, too, have the right combination of elements to beat on earnings this season. The Cheesecake Factory Incorporated CAKE currently has an Earnings ESP of +5.75% and a Zacks Rank of 2. You can see the complete list of today's Zacks #1 Rank stocks here. In the to-be-reported quarter, CAKE's earnings are expected to rise 30.9% year over year. CAKE's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 10.1%. Shake Shack Inc. SHAK has an Earnings ESP of +9.80% and a Zacks Rank of 2 at present. In the to-be-reported quarter, SHAK's earnings are expected to register an 11.1% year-over-year decline. SHAK's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed on one occasion, with an average negative surprise of 10.6%. Starbucks Corporation SBUX has an Earnings ESP of +2.43% and a Zacks Rank of 3 at present. In the to-be-reported quarter, Starbucks' earnings are expected to register a 38.5% year-over-year increase. Starbucks' earnings surpassed estimates in two of the trailing four quarters and missed twice, with the average surprise being 8.4%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Domino's Pizza Inc (DPZ) : Free Stock Analysis Report Starbucks Corporation (SBUX) : Free Stock Analysis Report The Cheesecake Factory Incorporated (CAKE) : Free Stock Analysis Report Shake Shack, Inc. (SHAK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Darden Restaurants, Inc. DRI reported first-quarter fiscal 2027 results, with earnings and revenues missing the Zacks Consensus Estimate. However, the top and bottom lines increased on a year-over-year basis. The quarter benefited from a blended same-restaurant sales increase of 3.1% on a fiscal-calendar basis, with all four segments delivering positive same-restaurant sales. The company ended the quarter with 2,218 company-owned restaurants in continuing operations. Following the results, the stock inched down 5% in today's pre-market trading session, likely reflecting the earnings and revenue misses and lower operating income despite the reaffirmed fiscal 2027 outlook. During the fiscal first quarter, Darden reported adjusted earnings per share (EPS) of $2.05, which missed the Zacks Consensus Estimate of $2.06. In the prior-year quarter, DRI reported adjusted EPS of $1.97. Darden Restaurants, Inc. price-consensus-eps-surprise-chart | Darden Restaurants, Inc. Quote Total sales during the quarter were $3.20 billion, missing the consensus mark of $3.21 billion. Sales increased 5.1% from the prior-year quarter's level of $3.04 billion. Darden reports business under four segments — Olive Garden, LongHorn Steakhouse, Fine Dining and Other Business. Due to the transition from a 53-week to a 52-week fiscal year, year-over-year fiscal-period comparisons are offset by one week. Consolidated same-restaurant sales increased 3.2% on a comparable-calendar basis. During the fiscal first quarter, sales at Olive Garden increased 2.2% year over year to $1.33 billion. Our estimate for the metric was $1.38 billion. Same-restaurant sales in the segment increased 1.1% on a fiscal-calendar basis and 1% on a comparable-calendar basis. At LongHorn Steakhouse, sales were up 10.9% year over year to $860.9 million. Our estimate for the metric was $844.5 million. Same-restaurant sales in the segment rose 6.2% on a fiscal-calendar basis and 6.8% on a comparable-calendar basis. Sales in Fine Dining increased 6.2% year over year to $304.2 million. Our estimate for the metric was $300.6 million. Same-restaurant sales in the segment rose 1.6% on a fiscal-calendar basis and 1% on a comparable-calendar basis. Sales in Other Business increased 3.6% year over year to $705.4 million. Our estimate for the metric was $672.7 million. Same-restaurant sales in the segment rose 3.8% on a fiscal-calendar basis and 4.5% on a comparable-calendar basis. In the fiscal first quarter, total operating costs and expenses increased 6.5% year over year to $2.88 billion. This increase was primarily due to higher food and beverage costs, restaurant labor expenses, restaurant expenses, marketing expenses, pre-opening costs and depreciation and amortization. Operating income decreased to $319.3 million from $339.2 million reported in the prior-year quarter. The year-ago period included a $42 million gain on the Olive Garden Canada sale. Adjusted earnings per share from continuing operations increased 4.1% year over year to $2.05. As of Aug. 30, 2026, cash and cash equivalents were $220.5 million compared with $219.5 million as of May 31, 2026. Inventories were $321 million compared with $326.3 million at the end of fiscal 2026. Long-term debt was $1.64 billion, largely unchanged from the level of May 31, 2026. During the quarter, the company repurchased approximately 1.1 million shares for $222.3 million. Darden had $1.3 billion remaining under its $1.5 billion share repurchase authorization. The company also declared a quarterly cash dividend of $1.62 per share. For fiscal 2027, the company reaffirmed its full-year financial outlook. Darden expects total sales in the range of $13.60-$13.75 billion. Same-restaurant sales growth is anticipated to be between 2.5% and 3.5%. Darden expects to open 75-80 new restaurants and incur total capital spending of approximately $875 million. The company projects earnings per share from continuing operations between $11.10 and $11.35, EBITDA in the range of $2.26-$2.29 billion, an effective tax rate of approximately 13.5% and about 114 million weighted average shares outstanding. Darden currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Zacks Retail-Wholesale sector have been discussed below. The Cheesecake Factory CAKE currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 stocks here. The Cheesecake Factory has a trailing four-quarter earnings surprise of 10.1%, on average. The Zacks Consensus Estimate for CAKE's fiscal 2026 sales and EPS indicates growth of 7% and 20.2%, respectively, from the year-ago period's levels. Cracker Barrel Old Country Store CBRL presently flaunts a Zacks Rank of 1. Cracker Barrel has a trailing four-quarter earnings surprise of 228.6%, on average. The consensus estimate for CBRL's fiscal 2026 EPS indicates growth of 60%, from the year-ago period's levels. Brinker International EAT currently holds a Zacks Rank of 2 (Buy). Brinker has a trailing four-quarter average earnings surprise of 6.2%. The Zacks Consensus Estimate for EAT's fiscal 2027 sales and EPS indicates growth of 8.1% and 22.7%, respectively, from the year-ago period's levels. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Darden Restaurants, Inc. (DRI) : Free Stock Analysis Report Cracker Barrel Old Country Store, Inc. (CBRL) : Free Stock Analysis Report The Cheesecake Factory Incorporated (CAKE) : Free Stock Analysis Report Brinker International, Inc. (EAT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). 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Darden Restaurants, Inc. DRI is scheduled to report first-quarter fiscal 2027 results on Sept. 24, before the opening bell.In the last reported quarter, its earnings beat the Zacks Consensus Estimate by 0.8%. DRI’s earnings beat the Zacks Consensus Estimate in one of the trailing four quarters, missed on two occasions and met once, with an average surprise of negative 0.3%. The Zacks Consensus Estimate for fiscal first-quarter earnings per share (EPS) is $2.06, up 4.6% from $1.97 in the year-ago quarter.For revenues, the consensus estimate is $3.20 billion. The projection implies a 5.3% rise from the year-ago quarter’s reported figure.Let us take a look at how things might have shaped up in the quarter to be reported. Darden’s fiscal first-quarter 2027 revenues are likely to have benefited from its ability to attract customers across different income groups. The company’s emphasis on affordability and value is expected to have maintained dining frequency despite cautious consumer sentiment. Its diverse restaurant portfolio, covering casual dining and higher-growth concepts, provides multiple avenues for generating sales. Management’s same-restaurant sales growth outlook of 2.5-3.5% for fiscal 2027 reflects expectations for continued business expansion.Restaurant development is another potential contributor to revenue growth. Darden plans to open 75-80 new restaurants and convert 11 Bahama Breeze locations during fiscal 2027. These initiatives should expand the company’s operating footprint and increase its sales capacity. LongHorn Steakhouse’s expansion plans are particularly important, as the brand offers significant growth potential within Darden’s portfolio.Menu enhancements and improved customer experiences might have further strengthened sales. Olive Garden’s focus on faster service and smoother restaurant operations might have improved guest satisfaction and encouraged repeat visits. Meanwhile, new menu offerings and targeted marketing campaigns bode well. Our model predicts revenues from Olive Garden and LongHorn Steakhouse to rise 6% and 8.8%, respectively, year over year to $1.38 billion and $844.5 million. We expect revenues from fine dining to increase 4.9% year over year to $300.6 million.Darden’s fiscal first-quarter 2027 earnings are expected to have been supported by productivity improvements, careful expense management and operating leverage. Better labor efficiency might have helped contain rising wage costs, while revenue growth could spread fixed expenses across a larger sales base. However, commodity inflation of approximately 4% and certain near-term expenses are expected to have created pressure during the quarter. The company’s ability to balance pricing, cost control and customer value is expected to remain important for protecting profitability. Darden Restaurants, Inc. price-eps-surprise | Darden Restaurants, Inc. Quote Our proven model does not conclusively predict an earnings beat for Darden this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.Earnings ESP for DRI: Darden has an Earnings ESP of -0.32%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Darden’s Zacks Rank: The company currently has a Zacks Rank #3. Here are some stocks from the Zacks Retail-Wholesale sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.The Cheesecake Factory Incorporated CAKE currently has an Earnings ESP of +25.86% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.In the to-be-reported quarter, CAKE’s earnings are expected to rise 27.9% year over year. CAKE’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 10.1%.Domino's Pizza, Inc. DPZ has an Earnings ESP of +0.73% and a Zacks Rank of 3 at present.In the to-be-reported quarter, Domino's earnings are expected to register 5.9% year-over-year growth. DPZ’s earnings missed estimates in the trailing three out of four quarters and beat once, with an average miss of 0.6%.Shake Shack Inc. SHAK has an Earnings ESP of +6.62% and a Zacks Rank of 3 at present. In the to-be-reported quarter, SHAK’s earnings are expected to register an 11.1% year-over-year decline. SHAK’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed on one occasion, with an average negative surprise of 10.6%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Darden Restaurants, Inc. (DRI) : Free Stock Analysis Report Domino's Pizza Inc (DPZ) : Free Stock Analysis Report The Cheesecake Factory Incorporated (CAKE) : Free Stock Analysis Report Shake Shack, Inc. (SHAK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how The Cheesecake Factory (NASDAQ:CAKE) and the rest of the sit-down dining stocks fared in Q2. Sit-down restaurants offer a complete dining experience with table service. These establishments span various cuisines and are renowned for their warm hospitality and welcoming ambiance, making them perfect for family gatherings, special occasions, or simply unwinding. Their extensive menus range from appetizers to indulgent desserts and wines and cocktails. This space is extremely fragmented and competition includes everything from publicly-traded companies owning multiple chains to single-location mom-and-pop restaurants. The 9 sit-down dining stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 1.1%. Thankfully, share prices of the companies have been resilient as they are up 5.6% on average since the latest earnings results. Celebrated for its delicious (and free) brown bread, gigantic portions, and delectable desserts, Cheesecake Factory (NASDAQ:CAKE) is an iconic American restaurant chain that also owns and operates a portfolio of separate restaurant brands. The Cheesecake Factory reported revenues of $1.03 billion, up 7.7% year on year. This print exceeded analysts’ expectations by 2.9%. Overall, it was a stunning quarter for the company with a solid beat of analysts’ same-store sales and EPS estimates. “We built on our strong start to the year with another quarter of better-than-expected financial results, as revenue, margins and earnings all exceeded our expectations,” said David Overton, Chairman and Chief Executive Officer. Interestingly, the stock is up 29.4% since reporting and currently trades at $115.22. Is now the time to buy The Cheesecake Factory? Access our full analysis of the earnings results here, it’s free. Founded in 1978 in California, BJ’s Restaurants (NASDAQ:BJRI) is a chain of restaurants whose menu features classic American dishes, often with a twist. BJ's reported revenues of $388.9 million, up 6.4% year on year, outperforming analysts’ expectations by 3.2%. The business had a very strong quarter with an impressive beat of analysts’ same-store sales estimates and full-year EBITDA guidance slightly topping analysts’ expectations. BJ's delivered the biggest analyst estimate beat of the whole group. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 8.4% since reporting. It currently trades at $68.00. Is now the time to buy BJ's? Access our full analysis of the earnings results here, it’s free. Operating a franchise model, Dine Brands (NYSE:DIN) is a casual restaurant chain that owns the Applebee’s and IHOP banners. Dine Brands reported revenues of $240.9 million, up 4.4% year on year, exceeding analysts’ expectations by 1.7%. Still, it was a mixed quarter as it posted a miss of analysts’ EBITDA estimates. Interestingly, the stock is up 1% since the results and currently trades at $35.21. Read our full analysis of Dine Brands’s results here. Known for its conveyor belt that transports dishes to diners, Kura Sushi (NASDAQ:KRUS) is a chain of sushi restaurants serving traditional Japanese fare with a touch of modernity and technology. Kura Sushi reported revenues of $85.92 million, up 16.2% year on year. This print missed analysts’ expectations by 0.7%. Zooming out, it was a mixed quarter as it also produced a beat of analysts’ EPS estimates but a significant miss of analysts’ same-store sales estimates. Kura Sushi pulled off the fastest revenue growth but had the weakest performance against analyst estimates and weakest full-year guidance update among its peers. The stock is down 10.7% since reporting and currently trades at $47.23. Read our full, actionable report on Kura Sushi here, it’s free. With locations often featuring Western-inspired decor, Texas Roadhouse (NASDAQ:TXRH) is an American restaurant chain specializing in Southern-style cuisine and steaks. Texas Roadhouse reported revenues of $1.68 billion, up 11.1% year on year. This result met analysts’ expectations. It was a satisfactory quarter as it also recorded same-store sales in line with analysts’ estimates. The stock is down 2.2% since reporting and currently trades at $203.67. Read our full, actionable report on Texas Roadhouse here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

A month has gone by since the last earnings report for Starbucks (SBUX). Shares have added about 1.3% in that time frame, underperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Starbucks due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Starbucks Corporation before we dive into how investors and analysts have reacted as of late. Starbucks Corporation reported mixed third-quarter fiscal 2026 results, with adjusted earnings beating the Zacks Consensus Estimate but net revenues missing the same. Adjusted earnings of 85 cents per share topped the consensus estimate of 66 cents by 28.8% and increased 70% year over year. Net revenues of $9.32 billion missed the consensus mark of $9.44 billion by 1.22% and declined 1.4%. Global comparable store sales increased 7.9%, driven by transaction and ticket growth. Starbucks’ GAAP operating income increased 4.8% year over year to $980.4 million. GAAP operating margin expanded 60 basis points to 10.5%, supported by sales leverage and lower inflation paired with tariff refunds.These benefits were partially offset by higher restructuring costs and labor investments largely tied to the “Back to Starbucks” plan. Restructuring and impairment expenses increased to $302.6 million from $20.8 million in the prior-year quarter.On a non-GAAP basis, operating margin expanded 430 basis points year over year to 14.4%. Product and distribution costs declined 4.3%, while depreciation and amortization expenses decreased 15.4%. General and administrative expenses fell 11.6%. North America remained Starbucks’ largest revenue contributor. Segment net revenues increased 6.8% year over year to $7.40 billion, primarily reflecting growth in company-operated store revenues.Comparable store sales rose 8.1%, driven by a 4.5% increase in comparable transactions and a 3.5% rise in average ticket. The company attributed the improvement to higher delivery sales and strength in customer food attachment and beverage modifications.North America’s operating income increased 9.8% to $1.01 billion from $918.7 million. Operating margin expanded 30 basis points to 13.6%, aided by sales leverage, lower inflation, tariff refunds and the comparison with Leadership Experience costs in 2025.Higher restructuring expenses, labor investments supporting the company’s turnaround strategy and unfavorable product mix partly offset the segment’s profitability gains. International segment net revenues declined 34.2% year over year to $1.32 billion. The decrease primarily reflected the conversion of Starbucks retail operations in China to a licensed joint venture model during the fiscal third quarter.Comparable store sales grew 5.7%, supported by a 2.6% rise in transactions and a 3.1% increase in average ticket. Starbucks ended the quarter with 22,933 International stores, up 3% year over year.International operating income declined 7.3% to $252.8 million. However, operating margin expanded 550 basis points to 19.1%, primarily benefiting from the transition of the China business to the licensed joint venture structure. Higher restructuring costs partly offset the margin improvement. Channel Development posted strong fiscal third-quarter growth, with net revenues increasing 21.5% year over year to $587.9 million. This improvement was primarily driven by higher revenues from the Global Coffee Alliance.Segment operating income increased 40.2% to $306.2 million from $218.4 million. Operating margin expanded 700 basis points to 52.1%, supported by tariff impacts, including refunds.These benefits were partially offset by product mix shifts and lower income from the North American Coffee Partnership joint venture relative to segment revenue growth. Starbucks ended the quarter with cash and cash equivalents of $3.45 billion, up from $3.22 billion at the end of fiscal 2025. Long-term debt declined to $11.78 billion from $14.58 billion.During the first three quarters of fiscal 2026, operating activities generated $3.60 billion in cash. Capital expenditures totaled $887.8 million, while cash dividends paid amounted to $2.12 billion.The company used a portion of the China transaction proceeds to repurchase approximately $1.3 billion of outstanding senior notes through tender offers. Starbucks declared a quarterly dividend of 62 cents per share, payable Aug. 28, 2026, to shareholders of record as of Aug. 14. Starbucks raised its fiscal 2026 outlook following stronger comparable-sales and margin performance. The company now expects full-year U.S. comparable store sales growth slightly above 6%, compared with its previous forecast of at least 5%. Global comparable store sales growth is projected to approach 6%, up from the earlier expectation of at least 5%.For the fiscal fourth quarter, SBUX expects U.S. comparable store sales growth of at least 6.5%. Consolidated net revenues are projected to remain flat or increase slightly year over year, while non-GAAP operating margin is expected to exceed 11%. Previously, management had called for year-over-year non-GAAP operating margin improvement without providing a specific threshold.The company raised its adjusted earnings guidance to $2.55-$2.65 per share from the prior range of $2.25-$2.45. Starbucks maintained its plan to open approximately 600-650 net new coffeehouses globally across company-operated and licensed businesses. Since the earnings release, investors have witnessed a upward trend in fresh estimates. Currently, Starbucks has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for value investors. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Starbucks has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Starbucks belongs to the Zacks Retail - Restaurants industry. Another stock from the same industry, Cheesecake Factory (CAKE), has gained 8.7% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Cheesecake Factory reported revenues of $1.03 billion in the last reported quarter, representing a year-over-year change of +7.7%. EPS of $1.44 for the same period compares with $1.16 a year ago. For the current quarter, Cheesecake Factory is expected to post earnings of $0.85 per share, indicating a change of +25% from the year-ago quarter. The Zacks Consensus Estimate has changed +18.7% over the last 30 days. Cheesecake Factory has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Starbucks Corporation (SBUX) : Free Stock Analysis Report The Cheesecake Factory Incorporated (CAKE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

It has been about a month since the last earnings report for Cheesecake Factory (CAKE). Shares have added about 14.1% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Cheesecake Factory due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers. Cheesecake Factory reported second-quarter fiscal 2026 results, with adjusted earnings topping the Zacks Consensus Estimate and increasing year over year. Total revenues also surpassed the consensus mark and improved from the year-ago quarter.Results benefited from strong comparable restaurant sales at The Cheesecake Factory concept, along with improved labor productivity and food efficiency. Management also highlighted continued momentum from menu innovation, its rewards program and marketing efforts. For the quarter under review, CAKE reported adjusted earnings per share of $1.44, beating the Zacks Consensus Estimate of $1.17 by 23.1%. In the year-ago period, the company reported adjusted earnings of $1.16 per share.Quarterly revenues were $1,029.6 million, up 7.7% from $955.8 million a year ago and topped the Zacks Consensus Estimate of $999 million by 3.1%. Adjusted net income increased to $69.7 million from $55.7 million in the prior-year quarter. Comparable restaurant sales at The Cheesecake Factory restaurants increased 5.8% year over year in the second quarter. This compared favorably with growth of 1.2% in the year-ago quarter. Management stated that comparable sales and traffic meaningfully outperformed the broader casual dining industry.From a segment standpoint, the namesake Cheesecake Factory restaurants generated $729.5 million of revenues versus $683.3 million in the year-ago quarter. North Italia revenues rose to $98.4 million from $90.8 million, while Other FRC revenues increased to $104 million from $90.2 million. Other segment revenues advanced to $97.7 million from $91.6 million. Operating performance strengthened year over year. Income from operations increased to $78.6 million from $64.8 million in the prior-year quarter. As a percentage of revenues, operating margin expanded 80 basis points to 7.6%, supported by higher sales and improved restaurant-level execution.Labor expenses declined 80 basis points to 34.1% of revenues, while other operating costs and expenses improved 30 basis points to 26.5%. Food and beverage costs increased 20 basis points to 21.8%, while general and administrative expenses rose 30 basis points to 6.4%. Preopening costs decreased to $7 million from $9 million. CAKE continued to add restaurants across its growth concepts. During the quarter, the company opened four new restaurants, including two North Italia locations, one Flower Child and one FRC restaurant. Subsequent to quarter-end, it opened one additional The Cheesecake Factory location.Management reiterated expectations to open as many as 26 new restaurants in fiscal 2026. The plan includes five to six The Cheesecake Factory restaurants, six to seven North Italia locations, seven Flower Child restaurants and as many as seven FRC restaurants. Shareholder returns remained active, with the company repurchasing approximately 158,600 shares for $9.3 million and declaring a quarterly dividend of 30 cents per share, payable Aug. 25, 2026, to shareholders of record as of Aug. 11. CAKE ended the quarter with $561.7 million of total available liquidity, comprising $195.2 million in cash and $366.5 million of revolver availability with no outstanding balance. Cash and cash equivalents were $195.2 million as of June 30, 2026, compared with $215.7 million at the end of fiscal 2025.During the quarter, the company repaid the remaining $69 million principal amount of its 0.375% convertible senior notes due 2026. Total debt principal stood at $575 million, representing the 2% convertible senior notes due 2030. Long-term debt, net of issuance costs, was $630.1 million compared with $562.9 million as of Dec. 30, 2025. With substantial revolver availability and no outstanding balance on the facility, CAKE retained financial flexibility to support restaurant development and shareholder returns. Since the earnings release, investors have witnessed a upward trend in estimates review. The consensus estimate has shifted 18.72% due to these changes. Currently, Cheesecake Factory has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a score of D on the value side, putting it in the bottom 40% for value investors. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Cheesecake Factory has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Cheesecake Factory Incorporated (CAKE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research