Company to Discuss Long-Term Strategy During Today’s Conference
Call
CALABASAS HILLS, Calif.--(BUSINESS WIRE)--Feb. 11, 2015--
The Cheesecake Factory Incorporated (NASDAQ: CAKE) today reported
financial results for the fourth quarter of fiscal 2014, which ended on
December 30, 2014.
Total revenues were $499.7 million in the fourth quarter of fiscal 2014
as compared to $475.1 million in the prior year fourth quarter. Net
income and diluted net income per share were $24.5 million and $0.48,
respectively, in the fourth quarter of fiscal 2014.
Operating Results
Comparable restaurant sales at The Cheesecake Factory restaurants
increased 1.4% in the fourth quarter of fiscal 2014.
“We continued to achieve a consistent level of sales at our existing
Cheesecake Factory restaurants, with the fourth quarter completing our
fifth consecutive year of delivering positive quarterly comparable
sales. In addition, our newer restaurants continue to outperform our
Company average in sales per square foot, which speaks to the strength
of our brand and multi-generational appeal,” said David Overton,
Chairman and Chief Executive Officer.
“Looking back on 2014, there were many high points during the year,
including our first restaurant opening in Mexico, continued expansion in
the Middle East and execution of a licensing agreement for growth in
Asia, in addition to a strong slate of domestic openings. However, the
operating environment was challenging and the fourth quarter was another
in which we were impacted by cost pressures. As we look forward to this
year and beyond, we believe our future is bright with multiple
opportunities for us to continue our leadership in casual dining and
continue to grow our Company with the best talent in the industry to
successfully execute our strategy,” concluded Overton.
Development
The Company opened five new restaurants in the fourth quarter of fiscal
2014, delivering on its objective to open 10 Company-owned restaurants
during fiscal 2014.
Internationally, one new Cheesecake Factory restaurant opened in the
Middle East in the fourth quarter of fiscal 2014, for a total of four
new international locations opened during the year under licensing
agreements.
In fiscal 2015, the Company continues to expect to open as many as 11
Company-owned restaurants domestically. In addition, the Company also
continues to expect as many as four restaurants to open in the Middle
East and Mexico under licensing agreements.
Capital Allocation
In fiscal 2014, the Company repurchased 3.1 million shares of its common
stock at a cost of $140.5 million, including 3,232 shares repurchased in
the fourth quarter of fiscal 2014. The Company returned $170.8 million
in cash to shareholders in fiscal 2014 in the form of share repurchases
and dividends.
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 March 10, 2015 to shareholders of record at the close of business on
February 25, 2015.
For fiscal 2015, the Company continues to expect that it will return its
free cash flow to shareholders in the form of share repurchases and
dividends.
Financial Reporting Dates for Fiscal 2015
The Company plans to announce quarterly financial results and hold
conference calls to discuss its results for the first three quarters of
fiscal 2015 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.
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Quarter Ending
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Earnings Release and Conference Call Dates
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March 31, 2015
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April 22, 2015
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June 30, 2015
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July 22, 2015
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September 29, 2015
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October 21, 2015
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Conference Call and Webcast
The Company will hold a conference call to review its results for the
fourth quarter of fiscal 2014 and discuss its long-term strategy 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 March 11, 2015.
Supplemental material will be made available on the Company’s website
prior to the start of the conference call.
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,
eight 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 2014, the Company was named to
Fortune magazine’s “100 Best Companies to Work For” list. To learn more
about the Company, 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. 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 successfully open new
restaurants with sales performance above the Company’s average; the
Company’s ability to remain relevant to consumers, to maintain high
quality standards and provide guests with an exceptional experience; the
Company’s ability to operate efficiently and effectively; the Company’s
ability to expand its concepts domestically and work with its licensees
to expand its concept internationally; the Company’s ability to execute
its long-term strategy; the Company’s ability to utilize its capital
effectively and increase shareholder value through dividends and share
repurchases; 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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52 Weeks Ended
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52 Weeks Ended
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Consolidated Statements of Operations
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December 30, 2014
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December 31, 2013
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December 30, 2014
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December 31, 2013
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Amounts
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Percent of
Revenue
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Amounts
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Percent of
Revenue
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Amounts
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Percent of
Revenue
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Amounts
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Percent of
Revenue
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Revenues
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$
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499,673
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100.0
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%
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$
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475,075
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100.0
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%
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$
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1,976,624
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100.0
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%
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$
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1,877,910
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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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126,249
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25.3
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%
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116,015
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24.4
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%
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490,306
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24.9
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%
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455,685
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24.2
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%
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Labor expenses
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162,596
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32.5
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%
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150,014
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31.6
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%
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646,102
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32.7
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%
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603,069
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32.1
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%
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Other operating costs and expenses
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120,199
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24.1
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%
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113,833
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24.0
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%
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478,504
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24.2
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%
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452,571
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24.1
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%
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General and administrative expenses
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29,169
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5.8
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%
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29,323
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6.2
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%
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|
119,094
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6.0
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%
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|
114,728
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6.1
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%
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Depreciation and amortization expenses
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21,120
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4.2
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%
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20,452
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4.3
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%
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82,835
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4.2
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%
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78,558
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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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0.0
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%
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(3,807
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)
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(0.8
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)%
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696
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0.0
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%
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(561
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)
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(0.0
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)%
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Preopening costs
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5,548
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1.1
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%
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4,879
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1.0
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%
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14,356
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0.7
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%
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12,906
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0.7
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%
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Total costs and expenses
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464,881
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93.0
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%
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430,709
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90.7
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%
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1,831,893
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92.7
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%
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1,716,956
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91.4
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%
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Income from operations
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34,792
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7.0
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%
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44,366
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9.3
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%
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144,731
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7.3
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%
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160,954
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8.6
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%
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Interest and other (expense)/income, net
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(1,871
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)
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(0.4
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)%
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(1,196
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)
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(0.2
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)%
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(6,187
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)
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(0.3
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)%
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(4,504
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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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32,921
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6.6
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%
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43,170
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9.1
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%
|
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|
138,544
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7.0
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%
|
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|
156,450
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8.3
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%
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Income tax provision
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|
8,435
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1.7
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%
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10,170
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2.2
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%
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37,268
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1.9
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%
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42,094
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2.2
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%
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Net income
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$
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24,486
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4.9
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%
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$
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33,000
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6.9
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%
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$
|
101,276
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5.1
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%
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$
|
114,356
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6.1
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%
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Basic net income per share
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$
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0.50
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$
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0.64
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$
|
2.04
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$
|
2.19
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|
|
Basic weighted average shares outstanding
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49,198
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|
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|
51,352
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49,567
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52,229
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Diluted net income per share
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$
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0.48
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$
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0.62
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$
|
1.96
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$
|
2.10
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|
|
|
|
Diluted weighted average shares outstanding
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|
51,207
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|
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|
53,604
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|
|
|
|
51,584
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|
|
|
|
|
54,377
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|
|
|
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Selected Segment Information
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Revenues:
|
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|
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|
|
|
|
|
|
|
|
|
|
The Cheesecake Factory restaurants
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$
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450,465
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|
|
|
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$
|
425,556
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|
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|
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$
|
1,792,796
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|
|
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$
|
1,688,036
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|
|
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Other
|
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|
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49,208
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|
|
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|
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49,519
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|
|
|
|
|
183,828
|
|
|
|
|
|
189,874
|
|
|
|
|
|
|
|
$
|
499,673
|
|
|
|
|
$
|
475,075
|
|
|
|
|
$
|
1,976,624
|
|
|
|
|
$
|
1,877,910
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Income from operations:
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Cheesecake Factory restaurants
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|
$
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58,524
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|
|
|
|
$
|
66,589
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|
|
|
$
|
240,774
|
|
|
|
|
$
|
250,230
|
|
|
|
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Other
|
|
|
|
|
3,550
|
|
|
|
|
|
5,652
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|
|
|
|
|
14,983
|
|
|
|
|
|
19,985
|
|
|
|
|
Corporate
|
|
|
|
|
(27,282
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)
|
|
|
|
|
(27,875
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)
|
|
|
|
|
(111,026
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)
|
|
|
|
|
(109,261
|
)
|
|
|
|
|
|
|
|
$
|
34,792
|
|
|
|
|
$
|
44,366
|
|
|
|
|
$
|
144,731
|
|
|
|
|
$
|
160,954
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Consolidated Balance Sheet Information
|
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December 30, 2014
|
|
December 31, 2013
|
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|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
$
|
58,018
|
|
|
|
|
$
|
61,751
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
|
|
1,176,452
|
|
|
|
|
|
1,124,114
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
|
|
|
619,942
|
|
|
|
|
|
546,761
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
|
|
|
556,510
|
|
|
|
|
|
577,353
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13 Weeks Ended
|
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13 Weeks Ended
|
|
52 Weeks Ended
|
|
52 Weeks Ended
|
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Supplemental Information
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December 30, 2014
|
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December 31, 2013
|
|
December 30, 2014
|
|
December 31, 2013
|
|
The Cheesecake Factory comparable restaurant sales
|
|
|
|
|
1.4
|
%
|
|
|
|
|
1.1
|
%
|
|
|
|
1.5
|
%
|
|
|
|
1.1
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%
|
|
Restaurants opened during period
|
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|
|
|
|
5
|
|
|
|
|
|
6
|
|
|
|
|
10
|
|
|
|
|
9
|
|
|
Restaurants open at period-end
|
|
|
|
|
|
189
|
|
|
|
|
|
180
|
|
|
|
|
189
|
|
|
|
|
180
|
|
|
Restaurant operating weeks
|
|
|
|
|
|
2,425
|
|
|
|
|
|
2,315
|
|
|
|
|
9,510
|
|
|
|
|
9,156
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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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 from certain items.
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
|
|
52 Weeks Ended
|
|
52 Weeks Ended
|
|
|
|
|
|
December 30, 2014
|
|
December 31, 2013
|
|
December 30, 2014
|
|
December 31, 2013
|
|
|
|
|
|
(unaudited; in thousands, except per share data)
|
|
Net income (GAAP)
|
|
$
|
24,486
|
|
$
|
33,000
|
|
|
$
|
101,276
|
|
$
|
114,356
|
|
|
After-tax impact from:
|
|
|
|
|
|
|
|
|
|
|
- Impairment of assets and lease terminations (1)
|
|
|
-
|
|
|
(2,284
|
)
|
|
|
418
|
|
|
(337
|
)
|
|
Net income (non-GAAP)
|
|
$
|
24,486
|
|
$
|
30,716
|
|
|
$
|
101,694
|
|
$
|
114,019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per share (GAAP)
|
|
$
|
0.48
|
|
$
|
0.62
|
|
|
$
|
1.96
|
|
$
|
2.10
|
|
|
After-tax impact from:
|
|
|
|
|
|
|
|
|
|
|
- Impairment of assets and lease terminations (1)
|
|
|
-
|
|
|
(0.04
|
)
|
|
|
0.01
|
|
|
(0.01
|
)
|
|
Diluted net income per share (non-GAAP) (2)
|
|
$
|
0.48
|
|
$
|
0.57
|
|
|
$
|
1.97
|
|
$
|
2.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
The pre-tax amounts associated with these items in fiscal 2014
were $510 in the second quarter and $186 in the first quarter. The
pre-tax amounts associated with these items in fiscal 2013 were
$(3,807) in the fourth quarter, $1,097 in the third quarter,
$1,505 in the second quarter and $644 in the first quarter. All
items were recorded in impairment of assets and lease terminations.
|
|
(2)
|
|
Diluted net income per share may not add due to rounding.
|
Source: The Cheesecake Factory Incorporated
The Cheesecake Factory Incorporated
Jill Peters, 818-871-3000
investorrelations@thecheesecakefactory.com