The Cheesecake Manufacturing unit (NASDAQ:CAKE) wavered on Thursday after the corporate missed This autumn earnings expectations and highlighted persistent margin pressures.

For the fourth quarter, the corporate reported a miss on high and backside traces. Comparable restaurant gross sales at The Cheesecake Manufacturing unit eating places elevated 4% within the quarter, beneath the 4.88% consensus expectation. Moreover, meals and beverage prices elevated 170 foundation factors 12 months over 12 months, which pressured margins.

“2022 was undeniably a particularly difficult 12 months with respect to our margin efficiency. And clearly, the fee surroundings stays heightened relative to historic requirements, and there will be no ensures it would abate in 2023,” CFO Matt Clark advised analysts. “That mentioned, in December, our pricing actions seem to have caught up with our prices, and whereas some extent of volatility and uncertainty ought to nonetheless be anticipated quarter-to-quarter, it’s our purpose to maintain a tighter correlation between pricing and the inflation we expertise going ahead.”

Transferring ahead, administration forecast complete revenues for fiscal 2023 to be between roughly $3.5B and $3.6B, suggesting upside to the $3.51B consensus. Whole inflation for the chain is anticipated to rise within the mid-single-digit vary for the full-year, with inflationary developments easing because the 12 months progresses.

CEO Dave Overton mentioned that the corporate will enact a menu value enhance of roughly 3.5% in the midst of Q1 to maintain tempo with inflation. He added that the corporate has not seen visitors developments falter within the face of value will increase as of but.

Shares of the California-based restaurant operator fell practically 3% on the market open on Thursday earlier than rebounding into optimistic territory for a short while. The inventory wavered between barely optimistic and adverse because the buying and selling day progressed.

Learn the earnings name transcript.