- Restaurant Brands posted revenue of US$ 1,726 million in Q3 2022.
- Cheesecake Factory Q3 2022 revenue soared by 3.9 per cent YoY.
- Restaurant Brands paid a quarterly dividend of US$ 0.54 per share.
US restaurant stocks may be drawing some attention as the Holiday season approaches. Investors might keep a close watch on the sector to see how these companies may have performed in the recent quarter. Two players in the sector, Restaurant Brands International Inc. (NYSE: QSR) and The Cheesecake Factory Inc. (NASDAQ: CAKE), have already released their Q3 2022 earnings results on November 3 and November 1, respectively.
So, let us look at these two stocks and see how they have fared in the third quarter of the current fiscal:
Restaurant Brands International Inc. (NYSE: QSR)
Restaurant Brands International is a Canadian American fast-food company headquartered in Toronto. The US$ 24.9 billion market cap company is the fifth-largest fast-food giant in the world after McDonald's, Subway, Starbucks, and Yum! Brands.
In its Q3 2022 earnings results, released on Thursday, November 3, Restaurant Brands International reported a revenue of US$ 1,726 million compared to US$ 1,495 million in the year-ago quarter.
Its net income in the reported quarter grew to US$ 530 million versus US$ 329 million in the corresponding quarter in 2021. The diluted earnings per share in Q3 2022 was US$ 1.17, while it was US$ 0.7 in Q3 2021.
The company paid a quarterly dividend of US$ 0.54 per share and its dividend yield was 3.427 per cent at the time of writing.
While the QSR stock declined by over 1.86 per cent year-to-date (YTD), it has climbed over 6.36 per cent over the past month.
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Cheesecake Factory Inc. (NASDAQ: CAKE)
The Cheesecake Factory Inc. is a US restaurant company that makes and distributes cheesecakes. The Calabasas, California-based company, has a market cap of US$ 1.8 billion. It announced a quarterly dividend of US$ 0.27 per share, which is next payable on November 28, 2022.
Cheesecake Factory reported its Q3 2022 financial results on Tuesday, November 1, posting total revenues of US$ 784 million. It is a 3.9 per cent growth from US$ 754.5 million in Q3 2021.
The company’s Q3 2022 net loss was reported at $2.4 million, while the diluted net loss per share was US$ 0.05.
The company said that its comparable restaurant sales at The Cheesecake Factory restaurants grew 1.1 per cent YoY (year-over-year) in Q3 2022.
While the CAKE stock plunged over 23 per cent YoY, it has ascended close to six per cent since the past month.
The US equity market is volatile at the moment, impaled by a slew of headwinds ranging from global macroeconomic factors to rising inflation and stringent monetary policies by the Fed Reserve.
So, stock selection during a bearish market is very challenging despite good shows by stocks, as past performances are not a guarantee for future growth. Investors must exercise caution before picking stocks for their portfolios.