Cheesecake Manufacturing unit inventory crashes greater than 10% after shock loss (NASDAQ:CAKE)

The Cheesecake Manufacturing unit (NASDAQ:CAKE) shares slid over 10% in after hours buying and selling on Tuesday after reporting large misses on Q3 earnings expectations.

The California-based restaurant chain reported a shock lack of $0.03 per share, nicely under the analyst consensus that was set at $0.30 in earnings per share. In the meantime, a modest 3.9% soar in income to $784M, got here up $15.22M of expectations. Comparable restaurant gross sales at eating places elevated 1.1% from the prior yr quarter, which additionally lagged an expectation of a 2.8% improve.

“Whereas our operational efficiency has been strong and core price inputs have grow to be extra secure and predictable, we proceed to face a dynamic and difficult inflationary setting in some areas,” CEO David Overton commented. “Because of this, our revenue margins within the quarter mirrored larger than anticipated working bills notably in utilities and constructing upkeep.”

The earnings launch famous that the corporate repurchased 889K shares for $26.7M within the third quarter. The Board of Administrators approved a rise of 5M shares to the present repurchase program elevating the full authorization to 61M shares, based on the discharge. The board additionally declared a quarterly dividend of $0.27 per share to be paid on November 28.

Shares of Cheesecake Manufacturing unit (CAKE) fell 10.11% shortly after the print.