CALABASAS HILLS, Calif., Apr 25, 2012 (BUSINESS WIRE) --The Cheesecake Factory Incorporated (NASDAQ: CAKE) today reported
financial results for the first quarter of fiscal 2012, which ended on
April 3, 2012.
Total revenues were $435.8 million in the first quarter of fiscal 2012
as compared to $418.8 million in the prior year first quarter. Net
income and diluted net income per share were $20.7 million and $0.37,
respectively.
Operating Results
Comparable restaurant sales at The Cheesecake Factory and Grand Lux Cafe
increased 2.4% in the first quarter of fiscal 2012. By concept,
comparable restaurant sales grew 2.6% at The Cheesecake Factory and 0.3%
at Grand Lux Cafe.
"We had the best guest traffic levels in more than a year during the
first quarter, as our culinary expertise and high service levels
continue to attract guests," said David Overton, Chairman and CEO.
"Our strategy is experienced-based, not offer driven, with a focus on
menu innovation and relevance to deliver full-margin sales. In the first
quarter, we generated higher restaurant-level margins relative to last
year, contributing to earnings per share that exceeded our targeted
range.
"With our restaurant manager retention near record highs and a talented
team of operators, we are confident in our ability to continue to
deliver a best-in-class guest experience," concluded Overton.
Capital Allocation
During the first quarter of fiscal 2012, the Company repurchased
1,356,147 shares of its common stock at a cost of approximately $40.9
million. The Company continues to expect it will utilize approximately
$100 million in free cash flow toward share repurchases in fiscal 2012.
Conference Call and Webcast
A conference call to review the Company's results for the first quarter
of fiscal 2012 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 May 25,
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 171 full-service, casual dining restaurants throughout
the U.S., including 157 restaurants under The Cheesecake Factory(R) mark;
13 restaurants under the Grand Lux Cafe(R) mark; and one restaurant under
the RockSugar Pan Asian Kitchen(R) 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
continue to introduce innovative new menu items and maintain high levels
of service to increase guest traffic levels in its restaurants; the
Company's ability to deliver an exceptional guest experience; the
Company's ability to continue to innovate its menu; the Company's
ability to deliver financial results within or above the range that it
has publicly disclosed; the Company's ability to continue to retain its
restaurant managers; 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.
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The Cheesecake Factory Incorporated and Subsidiaries
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Consolidated Financial Statements
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(unaudited; in thousands, except per share and statistical data)
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|
|
|
|
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|
|
|
|
13 Weeks Ended
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13 Weeks Ended
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Consolidated Statements of Operations
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April 3, 2012
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March 29, 2011
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|
|
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Percent of
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|
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Percent of
|
|
|
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Amount
|
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Revenues
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Amount
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Revenues
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|
Revenues
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$
|
435,754
|
|
|
|
100.0
|
%
|
|
$
|
418,765
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|
|
|
100.0
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%
|
|
Costs and expenses:
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|
|
|
|
|
|
|
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Cost of sales
|
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107,598
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24.7
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%
|
|
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104,664
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|
|
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25.0
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%
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Labor expenses
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142,980
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|
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32.8
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%
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137,498
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|
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32.8
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%
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Other operating costs and expenses
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|
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105,888
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|
|
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24.3
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%
|
|
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103,274
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|
|
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24.7
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%
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General and administrative expenses
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|
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28,665
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|
|
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6.6
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%
|
|
|
24,265
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|
|
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5.8
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%
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Depreciation and amortization expenses
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|
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18,298
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|
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4.2
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%
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17,453
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|
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4.2
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%
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Preopening costs
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|
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2,106
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|
|
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0.5
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%
|
|
|
1,760
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|
|
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0.4
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%
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Total costs and expenses
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|
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405,535
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|
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93.1
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%
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|
|
388,914
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|
|
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92.9
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%
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Income from operations
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|
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30,219
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|
|
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6.9
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%
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|
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29,851
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7.1
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%
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Interest and other (expense)/income, net
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(1,148
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)
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(0.2
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)%
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(1,402
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)
|
|
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(0.3
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)%
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Income before income taxes
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|
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29,071
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|
|
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6.7
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%
|
|
|
28,449
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|
|
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6.8
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%
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Income tax provision
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|
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8,349
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|
|
|
1.9
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%
|
|
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7,993
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|
|
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1.9
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%
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Net income
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$
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20,722
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|
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4.8
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%
|
|
$
|
20,456
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|
|
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4.9
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%
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|
|
|
|
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|
|
|
|
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Basic net income per share
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$
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0.39
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|
|
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$
|
0.35
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Basic weighted average shares outstanding
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53,680
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|
|
|
|
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58,480
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|
|
|
|
|
|
|
|
|
|
|
|
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Diluted net income per share
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|
$
|
0.37
|
|
|
|
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$
|
0.34
|
|
|
|
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Diluted weighted average shares outstanding
|
|
|
55,699
|
|
|
|
|
|
60,499
|
|
|
|
|
|
|
|
|
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Selected Segment Information
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Revenues:
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|
|
|
|
|
|
|
|
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Restaurants
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|
$
|
425,002
|
|
|
|
|
$
|
406,903
|
|
|
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Bakery
|
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26,173
|
|
|
|
|
|
25,837
|
|
|
|
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Intercompany bakery sales
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|
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(15,421
|
)
|
|
|
|
|
(13,975
|
)
|
|
|
|
|
|
$
|
435,754
|
|
|
|
|
$
|
418,765
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations:
|
|
|
|
|
|
|
|
|
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Restaurants
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|
$
|
55,524
|
|
|
|
|
$
|
51,897
|
|
|
|
|
Bakery
|
|
|
1,810
|
|
|
|
|
|
1,000
|
|
|
|
|
Corporate
|
|
|
(27,115
|
)
|
|
|
|
|
(23,046
|
)
|
|
|
|
|
|
$
|
30,219
|
|
|
|
|
$
|
29,851
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Selected Consolidated Balance Sheet Information
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April 3, 2012
|
|
January 3, 2012
|
|
Cash and cash equivalents
|
|
|
|
$
|
41,300
|
|
|
|
|
$
|
48,211
|
|
|
Total assets
|
|
|
|
|
1,000,347
|
|
|
|
|
|
1,022,570
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|
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Total liabilities
|
|
|
|
|
463,464
|
|
|
|
|
|
479,817
|
|
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Stockholders' equity
|
|
|
|
|
536,883
|
|
|
|
|
|
542,753
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13 Weeks Ended
|
|
13 Weeks Ended
|
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Supplemental Information
|
|
April 3, 2012
|
|
March 29, 2011
|
|
Comparable restaurant sales percentage change
|
|
|
|
|
2.4
|
%
|
|
|
|
|
1.6
|
%
|
|
Restaurants opened during period
|
|
|
|
|
1
|
|
|
|
|
|
1
|
|
|
Restaurants open at period-end
|
|
|
|
|
171
|
|
|
|
|
|
164
|
|
|
Restaurant operating weeks
|
|
|
|
|
2,212
|
|
|
|
|
|
2,126
|
|
SOURCE: The Cheesecake Factory Incorporated
The Cheesecake Factory Incorporated
Jill Peters, 818-871-3000
investorrelations@thecheesecakefactory.com