Cheesecake Factory reports earnings of US$20.6M in fiscal Q3, revenues of US$430.4M
CALABASAS HILLS, California
October 19, 2011
– The Cheesecake Factory Incorporated (NASDAQ:CAKE - News) today reported financial results for the third quarter of fiscal 2011, which ended on September 27, 2011.
Total revenues were $430.4 million in the third quarter of fiscal 2011 as compared to $418.4 million in the prior year third quarter. Net income and diluted net income per share were $20.6 million and $0.36, respectively.
Comparable restaurant sales at The Cheesecake Factory and Grand Lux Cafe increased 0.8% in the third quarter of fiscal 2011 from the third quarter of the prior year. Comparable restaurant sales in the current year period were impacted by approximately 0.4% due to Hurricane Irene. Excluding this weather impact, comparable restaurant sales increased 1.2%.
By concept, comparable restaurant sales grew 0.8% at The Cheesecake Factory and increased 0.9% at Grand Lux Cafe.
“We delivered positive comparable sales at both of our concepts, leading to our seventh consecutive quarter of positive comparable sales. Our new restaurants are opening to long wait times and above-average sales volumes, further contributing to our growth. This demonstrates strong demand for our brand, as does the recent results from a national consumer survey. We were again ranked as the clear favorite casual dining restaurant for the second consecutive year in the Market Force study. We know that consumers are attracted to restaurants that deliver a memorable guest experience, and that is the hallmark of The Cheesecake Factory,” said David Overton, Chairman and Chief Executive Officer.
“In addition, we are managing our business well in this environment. Apart from on-going, elevated food costs, our profitability is improving as our operators and corporate team effectively manage expenses in a way that simultaneously maximizes the guest experience, invests in the areas that will support the growth of our Company and leverages our fixed costs,” continued Overton.
The Company opened five new restaurants to date this year, with one additional opening scheduled for tomorrow in Westchester County, New York. The Company’s final new restaurant opening for fiscal 2011 is planned for early December.
During the third quarter of fiscal 2011, the Company repurchased 1,787,318 shares of its common stock at a cost of approximately $50 million. Year-to-date, the Company repurchased 5,018,781 shares at a total cost of approximately $145 million, as planned.
As a result, the Company is again increasing its share repurchase target for fiscal 2011 to a range of between $145 million and $170 million, an increase of $20 million. In conjunction with its expanded share repurchase program, the Company’s Board of Directors increased its share repurchase authorization by 10 million shares.
“We continue to return the majority of our free cash flow to shareholders. We are committed to the most productive use of our cash, with our first priority being investments in new restaurants. Given our history of consistent and sizeable cash generation, we are also able to make significant, opportunistic repurchases of our shares. Our expanded share repurchase authorization will allow us to continue doing so into the future, as appropriate,” concluded Overton.
Conference Call and Webcast
A conference call to review the Company’s results for the third quarter of fiscal 2011 will be held today at 2:00 p.m. Pacific Time. The conference call will be broadcast live over the Internet and a replay will be available shortly after the call and continue through November 19, 2011. To listen to the conference call, please go to the Company’s website at www.thecheesecakefactory.com at least 15 minutes prior to the start of the call to register and download any necessary audio software. Click on the “Investors” link on the home page and select the conference call link at the top of the page.
About The Cheesecake Factory Incorporated
The Cheesecake Factory Incorporated created the upscale casual dining segment in 1978 with the introduction of its namesake concept. The Company operates 168 full-service, casual dining restaurants throughout the U.S., including 154 restaurants under The Cheesecake Factory® mark; 13 restaurants under the Grand Lux Cafe® mark; and one restaurant under the RockSugar Pan Asian Kitchen® mark. The Company also operates two bakery production facilities in Calabasas Hills, CA and Rocky Mount, NC that produce over 70 varieties of quality cheesecakes and other baked products. To learn more about the Company, visit www.thecheesecakefactory.com.
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