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The Cheesecake Factory Reports Results for First Quarter of Fiscal 2008
CALABASAS HILLS, Calif., Apr 24, 2008 (BUSINESS WIRE) -- The Cheesecake Factory Incorporated (NASDAQ: CAKE) today reported financial results for the first quarter of fiscal 2008, which ended on April 1, 2008.

Total revenues increased 10% to $393.8 million from $356.6 million in the first quarter of fiscal 2008. Net income and diluted net income per share were $14.3 million and $0.21, respectively.

Operating Results

Comparable restaurant sales decreased approximately 1.8% in the first quarter of fiscal 2008. Inclement weather in many parts of the country during the first quarter of fiscal 2008 had a net impact on comparable sales of approximately $1.6 million. Excluding the estimated weather-related effect, comparable restaurant sales would have decreased approximately 1.2%.

By concept, comparable restaurant sales decreased an estimated 1.9% and 0.9% at The Cheesecake Factory and Grand Lux Cafe, respectively, in the first quarter of fiscal 2008. Absent any impact from weather, comparable sales would have decreased approximately 1.3% and 0.6% at The Cheesecake Factory and Grand Lux Cafe, respectively.

"We continue to be focused on execution and firmly managing our costs. Our operating margins were in-line with our expectations, despite ongoing cost headwinds and the de-leveraging effect from guest traffic that has not yet returned to normalized levels," said David Overton, Chairman and CEO. "We executed against our business plan for fiscal 2008 and repurchased shares during the first quarter. We firmly believe in the strength of our brands and view our stock repurchases as a good investment, as well as a means for us to deliver on our commitment to return value to shareholders."

Stock Repurchases

The Company repurchased approximately 2.2 million shares of its common stock during the first quarter of fiscal 2008 at a total cost of $45 million as part of its previously announced fiscal 2008 business plan, which includes estimated share repurchases of between $150 million and $200 million. The Company has repurchased approximately 15.7 million shares under its 31 million share authorization.

Targeted New Restaurant Openings

The Company continues to expect to open between seven and nine new restaurants in fiscal 2008, consisting of six to eight Cheesecake Factory restaurants as well as the initial unit of its newest concept, RockSugar Pan Asian Kitchen. The Company anticipates opening four Cheesecake Factory restaurants and RockSugar Pan Asian Kitchen in the second quarter of fiscal 2008, and expects the remaining new restaurants to open in the fourth quarter of fiscal 2008. The Company will maintain its focus on selecting only the premier locations for its concepts based upon their availability.

Conference Call and Webcast

A conference call to review the results for the first quarter of fiscal 2008 will be held on Thursday, April 24, 2008 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 May 23, 2008. To listen to the conference call, please go to the Company's website at 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 links for "Financial Information" and "Webcasts."

About The Cheesecake Factory Incorporated

The Cheesecake Factory Incorporated created the upscale casual dining segment in 1978 with the introduction of its namesake concept and continues to define it today with the two highest productivity concepts in the industry. The Company operates 139 restaurants throughout the U.S. under The Cheesecake Factory(R) name with an extensive menu of more than 200 items and fiscal 2007 average annual unit sales of approximately $10.4 million. Grand Lux Cafe(R), the Company's second concept, has 13 units in operation across the U.S. offering a broad menu of more than 150 items and average annual unit sales of approximately $12.7 million in fiscal 2007. The Company also operates two bakery production facilities in Calabasas Hills, CA and Rocky Mount, NC that produce over 60 varieties of quality cheesecakes and other baked products. Additionally, the Company operates one self-service, limited menu express foodservice operation and licenses two bakery cafe outlets to another foodservice operator under The Cheesecake Factory Bakery Cafe(R) mark. For more information, please visit thecheesecakefactory.com.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this release are generally identified by words, such as "believes," "anticipates," "plans," "expects," "will," and "would," and similar expressions that are intended to identify forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and that undue reliance should not be placed on such statements. In particular, forward-looking statements regarding the Company's restaurant sales trends are subject to risks and uncertainties due to national and regional economic and public safety conditions that impact consumer confidence and spending, as well as weather and other factors outside of the Company's control. Forward-looking statements regarding the number and timing of the Company's planned new restaurant openings are subject to risks and uncertainties due to factors outside of the Company's control, including factors that are under the control of government agencies, landlords and others. Approximately 15.3 million shares of the Company's common stock may be purchased under the Company's share repurchase authorization. This authorization does not require the Company to purchase a specific number of shares and it may be modified, suspended or terminated at any time. The timing and number of shares repurchased, if any, pursuant to the share repurchase authorization will be subject to a number of factors, including current market conditions, legal constraints and available cash or other sources of funding. Forward-looking statements speak only as of the dates on which they were made. The Company undertakes no obligation to publicly update or revise any forward-looking statements or to make any other forward-looking statements, whether as a result of new information, future events or otherwise unless required to do so by the securities laws. Investors are referred to the full discussion of risks and uncertainties associated with forward-looking statements and the discussion of risk factors contained in the Company's filings with the Securities and Exchange Commission. These filings are available on a website maintained by the Securities and Exchange Commission at www.sec.gov.

         The Cheesecake Factory Incorporated and Subsidiaries
                  Consolidated Financial Statements
   (unaudited; in thousands, except per share and statistical data)

                              13 Weeks Ended        13 Weeks Ended
Consolidated Statements of
 Operations                    April 1, 2008         April 3, 2007
-------------------------- --------------------- ---------------------
                                     Percent of            Percent of
                            Amount     Revenues   Amount     Revenues
                           --------------------- ---------------------
Revenues                   $393,803       100.0% $356,583       100.0%
Costs and expenses:
  Cost of sales             100,739        25.6%   89,560        25.1%
  Labor expenses            132,523        33.7%  118,840        33.3%
  Other operating costs
   and expenses              95,898        24.3%   84,794        23.8%
  General and
   administrative expenses   20,343         5.2%   19,472         5.5%
  Depreciation and
   amortization expenses     18,093         4.6%   15,390         4.3%
  Preopening costs            2,486         0.6%    3,084         0.9%
                           --------------------- ---------------------
      Total costs and
       expenses             370,082        94.0%  331,140        92.9%
                           --------------------- ---------------------
Income from operations       23,721         6.0%   25,443         7.1%
Interest expense             (3,539)      (0.9)%   (1,047)      (0.3)%
Interest income                 522         0.1%    1,632         0.5%
Other income, net              (175)        0.0%      267         0.1%
                           --------------------- ---------------------
Income before income taxes   20,529         5.2%   26,295         7.4%
Income tax provision          6,200         1.6%    7,889         2.2%
                           --------------------- ---------------------
Net income                 $ 14,329         3.6% $ 18,406         5.2%
                           ===================== =====================

Basic net income per share $   0.21              $   0.24
                           =========             =========
Basic weighted average
 shares outstanding          68,110                77,022
                           =========             =========

Diluted net income per
 share                     $   0.21              $   0.24
                           =========             =========
Diluted weighted average
 shares outstanding          68,629                78,165
                           =========             =========

Selected Segment
 Information
--------------------------
Revenues:
   Restaurants             $378,684              $343,081
   Bakery                    27,083                24,940
   Intercompany bakery
    sales                   (11,964)              (11,438)
                           ---------             ---------
                           $393,803              $356,583
                           =========             =========

Income from operations:
   Restaurants             $ 42,065              $ 42,121
   Bakery                     3,083                 4,107
   Corporate                (21,427)              (20,785)
                           ---------             ---------
                           $ 23,721              $ 25,443
                           =========             =========


Selected Consolidated
 Balance Sheet Information         April 1, 2008       January 1, 2008
-------------------------- --------------------- ---------------------
Cash and cash equivalents            $  128,786            $   36,867
Investments and marketable
 securities                               1,033                12,362
Total assets                          1,191,085             1,145,753
Long-term debt                          275,000               175,000
Total liabilities                       656,792               582,827
Stockholders' equity                    534,293               562,926


                                  13 Weeks Ended        13 Weeks Ended
Supplemental Information           April 1, 2008         April 3, 2007
-------------------------- --------------------- ---------------------
Comparable restaurant
 sales percentage change
 (1)                                       -1.8%                  0.4%
Restaurants opened during
 period                                       0                     1
Restaurants open at
 period-end                                 153                   133
Restaurant operating weeks                1,988                 1,720

(1) Includes The Cheesecake Factory and Grand Lux Cafe restaurants

SOURCE: The Cheesecake Factory Incorporated

The Cheesecake Factory Incorporated
Jill Peters, 818-871-3000