The Cheesecake Factory Sees Comparable Store Sales Down 1% in Q2

The Cheesecake Factory shares were slumping over 7% pre-market Tuesday after the company said it expects comparable sales at its restaurants to be down 1% in Q2, which will impact Q2 margins and earnings per share.

“We have continued to outperform the casual dining industry quarter to date, with over half of our regions posting positive comparable sales for the period, including key markets of California, Texas and Florida. More broadly however, we have seen heightened volatility in week to week sales trends, indicative of uncertainty on the part of many consumers. Specifically, we have seen pockets of softness as we moved through the quarter, notably in the East and Midwest where we also faced unfavorable weather that reduced patio usage,” said CEO David Overton.

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