CALABASAS HILLS, Calif.--(BUSINESS WIRE)--Feb. 21, 2012-- The Cheesecake Factory Incorporated (NASDAQ: CAKE) today reported financial results for the fourth quarter of fiscal 2011, which ended on January 3, 2012.

Total revenues were $477.7 million in the fourth quarter of fiscal 2011 as compared to $416.7 million in the prior year fourth quarter (14 weeks vs. 13 weeks). The additional week in the fourth quarter of fiscal 2011 contributed approximately $43 million of sales. Net income and diluted net income per share were $29.9 million and $0.54, respectively.

In compliance with accounting rules, the Company recorded a pre-tax, non-cash charge of $1.5 million related to the impairment of three restaurants during the fourth quarter of fiscal 2011. In addition, the Company recorded a pre-tax benefit of $0.7 million and a reduction to its income tax provision of $1.1 million, both related to a partial settlement with the Internal Revenue Service. On a combined basis, the items above increased diluted net income per share by approximately $0.01. Excluding these items, net income was $29.4 million and diluted net income per share was $0.53.

Operating Results

Comparable restaurant sales at The Cheesecake Factory and Grand Lux Cafe increased 2.7% in the fourth quarter of fiscal 2011 (14 weeks vs. 14 weeks). By concept, comparable restaurant sales grew 2.7% at The Cheesecake Factory and 1.9% at Grand Lux Cafe.

“We delivered our best comparable sales and highest guest traffic levels of the year, driving 36 percent earnings per share growth. The Cheesecake Factory offers the strongest, most consistent guest experience in the industry – and our numbers confirm it. We have always been an operating company, and over the past few years, our level of excellence in food, service and overall execution has become even better, further separating our concept from others in the industry. This places us in an extremely strong competitive position,” said David Overton, Chairman and CEO.

“Continued focus on an exceptional guest experience will be a key to extending our market share, and we expect that 2012 will represent our third consecutive year of comparable sales and guest traffic growth.

“This year also marks the beginning of our global expansion, which will be an important component to our future earnings potential, adding to our confidence that mid-teens earnings per share growth is a realistic and achievable goal going forward,” concluded Overton.

Development

The Company now expects it will open as many as seven to eight new restaurants in the U.S. in fiscal 2012. In addition, the Company expects that as many as three restaurants in the Middle East will open this year under a license agreement.

Capital Allocation

During the fourth quarter of fiscal 2011, the Company repurchased 973,243 shares of its common stock at a cost of approximately $27 million. For the full year of fiscal 2011, the Company repurchased 5,992,024 shares, returning approximately $172 million in cash to shareholders, exceeding its plan for the year.

Financial Reporting Dates for Fiscal 2012

The Company plans to announce quarterly financial results and hold conference calls to discuss its results for the first three quarters of fiscal 2012 as outlined below. The earnings press releases will be issued at approximately 1:15 p.m. Pacific Time and the conference calls will follow at 2:00 p.m. Pacific Time on the same day. Dates and times could be subject to change.

Conference Call and Webcast

A conference call to review the Company’s results for the fourth 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 March 21, 2012. 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 170 full-service, casual dining restaurants throughout the U.S., including 156 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.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These 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, including uncertainties related to: the Company’s ability to increase guest traffic levels in its restaurants, deliver positive comparable restaurant sales and effectively leverage incremental sales; the Company’s ability to manage expenses and increase profit margins; the Company’s ability to deliver financial results within the range that it has publicly disclosed; the Company’s ability to meet its new restaurant opening target; the Company’s ability to generate high levels of cash flow and utilize it to repurchase the Company’s common stock; factors outside of the Company’s control that impact consumer confidence and spending; current and future macro national and regional economic and credit market conditions; changes in national and regional unemployment rates; the economic health of the Company’s landlords and other tenants in retail centers in which its restaurants are located; the economic health of suppliers, vendors and other third parties providing goods or services to the Company; adverse weather conditions in regions in which the Company’s restaurants are located; factors that are under the control of government agencies, landlords and other third parties; and other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission (“SEC”), as set forth below. Investors are cautioned that forward-looking statements are not guarantees of future performance and that undue reliance should not be placed on such statements. Forward-looking statements speak only as of the dates on which they are made and 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 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 latest Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K as filed with the SEC, which are available at www.sec.gov.

Reconciliation of Non-GAAP Results to GAAP Results

In addition to the results provided in accordance with Generally Accepted Accounting Principles ("GAAP") in this press release, the Company is providing non-GAAP measurements which present the fourth quarter and full year fiscal 2011 and fiscal 2010 net income and diluted net income per share excluding the impact from certain items. Additional detail regarding the fourth quarter fiscal 2011 items can be found on the first page of this press release.

The non-GAAP measurements are intended to supplement the presentation of the Company’s financial results in accordance with GAAP. The Company believes that the presentation of these items provides additional information to facilitate the comparison of past and present financial results.

(1) The pre-tax amount associated with this item was $1,547 and was recorded in impairment of assets.

(2) The pre-tax amounts associated with this item were $719 and $1,075 and were recorded in interest income and income tax provision, respectively.

(3) The pre-tax amount associated with this item was $7,376 and was recorded in interest expense.

(4) Diluted net income per share may not add due to rounding.

Source: The Cheesecake Factory Incorporated

The Cheesecake Factory Incorporated
Jill Peters, 818) 871-8342
jpeters@thecheesecakefactory.com