CALABASAS HILLS, Calif.--(BUSINESS WIRE)--March 29, 2005--The
Cheesecake Factory Incorporated (Nasdaq:CAKE) today announced the
opening of two new restaurants on March 28, 2005:
- The Cheesecake Factory at The Grove in Los Angeles, containing
approximately 9,600 square feet and 290 seats, and
- The Cheesecake Factory at First Colony Mall in Sugar Land,
Texas, a suburb of Houston, containing approximately 10,500
square feet and 300 seats.
"We are very pleased with the opening night results at both of
these restaurants," commented David Overton, Chairman and CEO. "This
brings us to our previously stated plan of five first quarter openings
and keeps us on schedule to open as many as 18 new restaurants in
fiscal 2005."
The Company also announced that it is continuing its review of the
accounting treatment for its operating leases. Specifically, the
Company has learned that the Staff of the Securities and Exchange
Commission provided additional guidance last week with respect to the
accounting treatment for rent holiday periods. The rent holiday period
is the period from the Company's commencement of tenant improvements
until the rent commencement date stated in the lease. As a result, the
Company is evaluating what portion of the straight-line rent allocated
to the rent holiday period should be recognized as a cost of
construction of leasehold improvements and capitalized. The
restatement adjustments do not change previously reported revenues or
net cash flows.
The lease accounting errors will not result in a material
misstatement of the Company's consolidated financial statements for
any annual or interim period previously reported. However, the Company
determined the cumulative adjustment for the above corrections to be
significant to the 2004 fourth quarter results and, therefore, will
restate its prior annual and quarterly information in its 2004 Annual
Report on Form 10-K. Management's Report on Internal Controls over
Financial Reporting to be included in the Company's Annual Report on
Form 10-K will contain an assessment by management that the Company's
internal control over financial reporting was effective as of December
28, 2004.
The Company previously announced that it had filed Form 12b-25
with the Securities and Exchange Commission with respect to the
Company's Annual Report on Form 10-K for the fiscal year ended
December 28, 2004. If a Form 10-K is filed within 15 calendar days
after its prescribed due date and a Form 12b-25 is timely filed, then
the Form 10-K is deemed to be timely filed on its prescribed due date.
However, due to the additional time needed to evaluate and resolve the
lease accounting issue with respect to the rent holiday period, the
Company expects that it will be unable to file its Form 10-K within
the 15 calendar day period. Notwithstanding the Form 12b-25 filing,
the Company now expects it will file its Form 10-K within
approximately one week.
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
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.
Forward-looking statements speak only as of the dates on which they
were made. The adjustments described above are subject to change based
upon completion of the review by the Company and its independent
registered public accounting firm. The Company undertakes no
obligation to update publicly 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 contained in the Company's filings with the Securities and
Exchange Commission.
The Cheesecake Factory Incorporated operates 92 upscale, casual
dining restaurants under The Cheesecake Factory(R) name that offer an
extensive menu of more than 200 items with an average check of
approximately $16.60. The Company also operates a bakery production
facility that produces over 50 varieties of quality cheesecakes and
other baked products for the Company's restaurants and for other
leading foodservice operators, retailers and distributors.
Additionally, the Company operates five upscale casual dining
restaurants under the Grand Lux Cafe(R) name; one self-service,
limited menu "express" foodservice operation under The Cheesecake
Factory Express(R) mark inside the DisneyQuest(R) family entertainment
center in Orlando, Florida; and licenses three bakery cafe outlets to
another foodservice operator under The Cheesecake Factory Bakery
Cafe(R) name.
CONTACT: The Cheesecake Factory Incorporated
Jane Vallaire, 818-871-3000
SOURCE: The Cheesecake Factory Incorporated