CALABASAS HILLS, Calif.--(BUSINESS WIRE)--Apr. 22, 2015--
The Cheesecake Factory Incorporated (NASDAQ: CAKE) today reported
financial results for the first quarter of fiscal 2015, which ended on
March 31, 2015.
Total revenues were $518.0 million in the first quarter of fiscal 2015
as compared to $481.4 million in the prior year first quarter. Net
income and diluted net income per share were $28.4 million and $0.56,
respectively, in the first quarter of fiscal 2015.
Operating Results
Comparable restaurant sales at The Cheesecake Factory restaurants
increased 4.2% in the first quarter of fiscal 2015.
“We delivered a remarkable comparable sales increase at The Cheesecake
Factory in the first quarter, beginning our sixth consecutive year of
achieving positive quarterly comparable sales. Importantly, we
experienced a solid increase in guest traffic during the quarter on the
strength of our brand and highly differentiated guest experience. We
also performed particularly well from a competitive standpoint,
considerably outpacing the industry and increasing our market share,”
said David Overton, Chairman and Chief Executive Officer.
“Our operators did an excellent job of leveraging the increase in sales
by appropriately managing flow through, which drove a meaningful
increase in margins and earnings growth. The demand for our brand
combined with our operational execution drove strong overall performance
this quarter, as we deliver on our commitment to increase shareholder
value,” concluded Overton.
Development
The Company continues to expect to open as many as 11 Company-owned
restaurants domestically in fiscal 2015. The first Company-owned
restaurant opening is expected in the second quarter of fiscal 2015.
Internationally, one new Cheesecake Factory restaurant opened in Mexico
in the first quarter of fiscal 2015 under a licensing agreement. The
Company now expects as many as three restaurants to open in the Middle
East and Mexico under licensing agreements in fiscal 2015.
Capital Allocation
The Company’s Board of Directors declared a quarterly cash dividend of
$0.165 per share on the Company’s common stock. The dividend is payable
on May 19, 2015 to shareholders of record at the close of business on
May 6, 2015.
During the first quarter of fiscal 2015, the Company repurchased 1.7
million shares of its common stock at a cost of $80.4 million. The
Company continues to expect that it will return its free cash flow to
shareholders in fiscal 2015 in the form of dividends and share
repurchases.
Conference Call and Webcast
The Company will hold a conference call to review its results for the
first quarter of fiscal 2015 today at 2:00 p.m. Pacific Time. The
conference call will be webcast live on the Company’s website at investors.thecheesecakefactory.com
and a replay of the webcast will be available through May 22, 2015.
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 189 full-service, casual dining restaurants throughout
the U.S. and Puerto Rico, including 177 restaurants under The Cheesecake
Factory® mark; 11 restaurants under the Grand Lux Cafe® mark; and one
restaurant under the RockSugar Pan Asian Kitchen® mark. Internationally,
nine The Cheesecake Factory® restaurants operate under licensing
agreements. The Company also operates two bakery production facilities
in Calabasas Hills, CA and Rocky Mount, NC that produce quality
cheesecakes and other baked products. In 2015, the Company was named to
the FORTUNE Magazine “100 Best Companies to Work For®” list for the
second consecutive year. To learn more about the Company, visit www.thecheesecakefactory.com.
FORTUNE and 100 Best Companies to Work For® are registered trademarks of
Time Inc. and are used under license. From FORTUNE Magazine, March 15,
2015 ©2015 Time Inc.FORTUNE and Time Inc. are not affiliated with, and
do not endorse products or services of, The Cheesecake Factory
Incorporated.
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
deliver consistent and dependable comparable sales results over a
sustained period of time; the Company’s ability to continue to deliver
increases in guest traffic; the strength of the Company’s brand; the
Company’s ability to provide a differentiated experience to guests; the
Company’s ability to outperform the casual dining industry and increase
its market share; the Company’s ability to leverage sales increases and
manage flow through; the Company’s ability to increase margins; the
Company’s ability to grow earnings; the Company’s ability to remain
relevant to consumers; the Company’s ability to increase shareholder
value; the Company’s ability to expand its concepts domestically and
work with its licensees to expand its concept internationally; the
Company’s ability to utilize its capital effectively and continue to
repurchase its shares; factors outside of the Company’s control that
impact consumer confidence and spending; current and future
macroeconomic conditions; acceptance and success of The Cheesecake
Factory in international markets; changes in 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, licensees, 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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13 Weeks Ended
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13 Weeks Ended
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Consolidated Statements of Operations
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March 31, 2015
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April 1, 2014
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Amount
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Percent of
Revenues
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Amount
|
Percent of
Revenues
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|
Revenues
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$
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517,973
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|
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100.0
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%
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$
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481,431
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100.0
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%
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Costs and expenses:
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Cost of sales
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126,612
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24.4
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%
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119,362
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24.8
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%
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Labor expenses
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171,169
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33.0
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%
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159,450
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33.1
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%
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Other operating costs and expenses
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123,435
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23.8
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%
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115,633
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24.0
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%
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General and administrative expenses
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33,075
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6.4
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%
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31,242
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6.5
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%
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Depreciation and amortization expenses
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21,177
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4.1
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%
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20,251
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4.2
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%
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Impairment of assets and lease terminations
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-
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-
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186
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-
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Preopening costs
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1,451
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0.4
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%
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2,234
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0.5
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%
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Total costs and expenses
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476,919
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92.1
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%
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448,358
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93.1
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%
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Income from operations
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41,054
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7.9
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%
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33,073
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6.9
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%
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Interest and other (expense)/income, net
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(1,895
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)
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(0.3
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)%
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(1,391
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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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39,159
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7.6
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%
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31,682
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6.6
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%
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Income tax provision
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10,736
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2.1
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%
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9,164
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1.9
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%
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Net income
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$
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28,423
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5.5
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%
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$
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22,518
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4.7
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%
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Basic net income per share
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$
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0.58
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$
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0.44
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Basic weighted average shares outstanding
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49,225
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50,745
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Diluted net income per share
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$
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0.56
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$
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0.43
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Diluted weighted average shares outstanding
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51,102
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52,844
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Selected Segment Information
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Revenues:
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The Cheesecake Factory restaurants
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$
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472,817
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$
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436,606
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Other
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45,156
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44,825
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$
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517,973
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$
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481,431
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Income from operations:
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The Cheesecake Factory restaurants
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$
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66,701
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$
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57,990
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Other
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6,063
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|
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4,426
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Corporate
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(31,710
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)
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(29,343
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)
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|
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$
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41,054
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|
|
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$
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33,073
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Selected Consolidated Balance Sheet Information
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March 31, 2015
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December 30, 2014
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Cash and cash equivalents
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$
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39,478
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$
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58,018
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Total assets
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|
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1,128,726
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1,176,452
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Long-term debt
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25,000
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-
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Total liabilities
|
|
|
|
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622,222
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|
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619,942
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Stockholders' equity
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|
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506,504
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|
|
|
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556,510
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|
|
|
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|
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|
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13 Weeks Ended
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13 Weeks Ended
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Supplemental Information
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March 31, 2015
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April 1, 2014
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The Cheesecake Factory comparable restaurant sales
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4.2
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%
|
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1.2
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%
|
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Restaurants opened during period
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-
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|
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|
1
|
|
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Restaurants open at period-end
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|
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189
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|
|
|
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181
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|
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Restaurant operating weeks
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2,457
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|
|
|
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2,347
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|
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|
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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 net income and
diluted net income per share excluding the impact of a certain item.
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.
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|
|
13 Weeks Ended
|
|
13 Weeks Ended
|
|
|
|
March 31, 2015
|
|
April 1, 2014
|
|
|
|
(unaudited; in thousands, except per share data)
|
|
Net income (GAAP)
|
|
$
|
28,423
|
|
$
|
22,518
|
|
After-tax impact from:
|
|
|
|
|
|
- Impairment of assets and lease terminations (1)
|
|
|
-
|
|
|
112
|
|
Net income (non-GAAP)
|
|
$
|
28,423
|
|
$
|
22,630
|
|
|
|
|
|
|
|
|
Diluted net income per share (GAAP)
|
|
|
|
|
|
After-tax impact from:
|
|
$
|
0.56
|
|
$
|
0.43
|
|
- Impairment of assets and lease terminations (1)
|
|
|
-
|
|
|
0.00
|
|
Diluted net income per share (non-GAAP)
|
|
$
|
0.56
|
|
$
|
0.43
|
(1) The pre-tax amount associated with this item was $186 in the first
quarter of fiscal 2014 and was recorded in impairment of assets and
lease terminations in the consolidated statements of operations.
Source: The Cheesecake Factory Incorporated
The Cheesecake Factory Incorporated
Jill Peters, (818) 871-3000
investorrelations@thecheesecakefactory.com