STOCKS TELEGRAPH

Tag: hospitality

  • The Cheesecake Factory, Inc. (CAKE) Stock Exhibiting Minor Volatility Following Disclosure of Promising Q2 2021 Financial Report

    The Cheesecake Factory, Inc. (CAKE) stock prices were up to USD$0.90% as of the market close on July 27th, 2021, bringing the price per share up to USD$55.01 at the end of the trading day. Subsequent premarket fluctuations saw the stock drop by 5.65%, bringing it down to USD$51.90.

    Revenue Reports

    Total revenues for the second quarter of fiscal 2021, ended June 29th, 2021, were reported at USD$769 million. This is a significant improvement over the USD$295.9 million in the prior-year quarter. Net income attributable to common stockholders came in at USD$17.1 million, while diluted net income per common share was USD$0.37 for Q2 2021.

    Additional Financials

    The quarter saw CAKE stock report USD$11.4 million in non-cash acquisition-related contingent consideration and amortization expense. The amortization expense was primarily associated with the amendment to the Fox Restaurant Concepts acquisition agreement, including the extension of the earn-out period through to 2026. Adjusted net income for the quarter came out to USD$43.9 million, representing an adjusted net income per share of USD$0.80.

    CAKE Stock Recovering from Pandemic

    CAKE stock’s restaurants in almost their entirety are operating with no indoor dining restrictions. Comparable sales for the company during the Fiscal 2021 third quarter-to-date were up 61% as compared to the prior year period and 10% as compared to the 2019 period. This increase was largely supported by a 27% off-premise sales mix. On the basis of roughly USD$230,000 in average weekly sales quarter-to-date, this represents nearly USD$12 million on average, per unit on an annualized basis. Off-premise average weekly sales were almost twice the numbers reported for the fiscal 2019 period.

    Solid Liquidity Position

    CAKE stock reported a solid liquidity position of USD$401.9 million as of June 29th, 2021, which included a cash balance of USD$161.8 million and USD$240.1 million available through the company’s revolving credit facility. Total principal amount of debt outstanding was USD$475 million as of the end of the quarter, which included USD$345 million in 0.375% convertible senior notes that were issued during Q2 2021 and will be due in 2026. The company also reported USD$130 million drawn on its revolving credit facility, following from the USD$150 million repayment announced during the quarter.

    Future Outlook for CAKE

    Armed with the financial success of the second quarter of 2021, CAKE stock is poised to capitalize on the opportunities it finds presented to it for Q3 2021. Current and potential investors are hopeful that management will leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.

  • FAST Acquisition Corp. (FST) Stock Surges Ahead of Amendment to Merger Agreement with Fertitta

    FAST Acquisition Corp. (FST) stock prices surged by 16.51% shortly after market trading commenced on July 1st, 2021, bringing the price per share up to USD$13.76 early on in the trading day.

    Merger with Fertitta

    June 30th, 2021 saw the company announced an amendment to their previously announced Agreement and Plan of Merger with Fertitta, which the companies entered into February 1st, 2021. As per the agreement, FST will contribute certain operating businesses, for no additional debt, that were not originally included as part of the business combination with FST. The amendment will see the addition of 42 incremental, high-quality business assets.

    About Fertitta

    The revised transaction will result in Fertitta Entertainment becoming one of the largest publicly traded hospitality companies with 5 land-based casinos, as well as significant ownership of Golden Nugget Online Gaming, Inc. The company also has more than 500 restaurants, amusements, hotels, entertainment venues, and other business units spread out across 38 U.S. states, Puerto Rico, Hong Kong, China, Mexico, Singapore, as well as several licensed restaurants throughout the world.

    Financial Reports

    The company also announced preliminary pro forma financial results for the quarter ended June 30th, 2021. Revenues for the quarter are forecasted to be in the range of USD$917 million to USD$920 million, while adjusted EBITDA is expected to be between USD$270 million and USD$275 million. Full-year 2021 pro forma adjusted EBITDA is expected to be greater than USD$800 million

    Agreement Amendments

    The amendment to the transaction includes an enterprise valuation for Golden Nugget/Landry’s in the amount of almost USD$8.6 billion. This enterprise value is inclusive of the value of the GNOG equity that is expected to be contributed to the company, with the trading price of each share assumed to be roughly USD$13.00 for each GNOG share. This price will be subject to adjustment based on the closing price average for the past 60 days. Cash proceeds from the transaction are forecasted to be comprised of FST’s USD$200 million of cash in trust. Furthermore, shareholders will invest USD$1.24 billion in the form of a PIPE at a price of USD$10.00 per share of common stock.

    Future Outlook for FST

    Armed with an expansion of the partnership with Fertitta, FST is poised to capitalize on the additional opportunities that now lay before it. The company is keen to continue its trajectory of success and usher in unprecedented growth over the long term.