Cheesecake Factory sees Q1 revenue $850M-$880M, consensus $862.8M

The company states: "For Q1, based on our quarter-to-date performance, the most recent trends and assuming no material operating or consumer disruptions, we anticipate total revenues to be between $850 million and $880 million. This includes a menu price increase of approximately 3.5% we are deploying at the Cheesecake Factory restaurants during the middle of the quarter. This menu price increase is replacing the 3.25% menu price increase we took in the first quarter of last year. Next, at this time, we expect effective commodity inflation of about 10% to 12% for Q1. We are modeling net total labor inflation of about 6% when factoring in the latest trends in wage rates, channel mix as well as other components of labor. We anticipate net income margin of approximately 3% to 3.5% for the first quarter of fiscal 2023 based on the revenue range I previously outlined and the elevated year-over-year commodities… 2022 was undeniably an extremely challenging year with respect to our margin performance. And clearly, the cost environment remains heightened relative to historical standards, and there can be no guarantees that will abate in 2023. That said, in December, our pricing actions appear to have caught up with our costs, and while some degree of volatility and uncertainty should still be expected quarter-to-quarter. It is our goal to keep a tighter correlation between pricing and the inflation we experience going forward." Comments taken from Q4 earnings conference call.