The Cheesecake Factory, Inc. (CAKE) stock prices were up to USD$0.90% as of the market close on July 27th, 2021, bringing the price per share up to USD$55.01 at the end of the trading day. Subsequent premarket fluctuations saw the stock drop by 5.65%, bringing it down to USD$51.90.
Total revenues for the second quarter of fiscal 2021, ended June 29th, 2021, were reported at USD$769 million. This is a significant improvement over the USD$295.9 million in the prior-year quarter. Net income attributable to common stockholders came in at USD$17.1 million, while diluted net income per common share was USD$0.37 for Q2 2021.
The quarter saw CAKE stock report USD$11.4 million in non-cash acquisition-related contingent consideration and amortization expense. The amortization expense was primarily associated with the amendment to the Fox Restaurant Concepts acquisition agreement, including the extension of the earn-out period through to 2026. Adjusted net income for the quarter came out to USD$43.9 million, representing an adjusted net income per share of USD$0.80.
CAKE Stock Recovering from Pandemic
CAKE stock’s restaurants in almost their entirety are operating with no indoor dining restrictions. Comparable sales for the company during the Fiscal 2021 third quarter-to-date were up 61% as compared to the prior year period and 10% as compared to the 2019 period. This increase was largely supported by a 27% off-premise sales mix. On the basis of roughly USD$230,000 in average weekly sales quarter-to-date, this represents nearly USD$12 million on average, per unit on an annualized basis. Off-premise average weekly sales were almost twice the numbers reported for the fiscal 2019 period.
Solid Liquidity Position
CAKE stock reported a solid liquidity position of USD$401.9 million as of June 29th, 2021, which included a cash balance of USD$161.8 million and USD$240.1 million available through the company’s revolving credit facility. Total principal amount of debt outstanding was USD$475 million as of the end of the quarter, which included USD$345 million in 0.375% convertible senior notes that were issued during Q2 2021 and will be due in 2026. The company also reported USD$130 million drawn on its revolving credit facility, following from the USD$150 million repayment announced during the quarter.
Future Outlook for CAKE
Armed with the financial success of the second quarter of 2021, CAKE stock is poised to capitalize on the opportunities it finds presented to it for Q3 2021. Current and potential investors are hopeful that management will leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.