Cheesecake Factory sees Q4 revenue $940M-$955M, consensus $970.2M

The company states: “Specifically, for Q4, we anticipate total revenues to be between $940 million and $955 million, representing an approximate 1% step down from the Q3 sales trend. At this time, we expect effective commodity inflation of low single digits for Q4. We are modeling net total labor inflation of low to mid-single digits when factoring in the latest trends in wage rates and minimum wage increases, as well as other components of labor. G&A is estimated to be about $60 million. Depreciation is estimated to be approximately $28 million. We are estimating pre-opening expenses to be approximately $8 million to $9 million to support the seven planned openings in the quarter and early Q1 openings. Based on these assumptions, we would anticipate adjusted net income margin to be about 5.1% at the midpoint of the sales range provided.”