Company Announces 21 Percent Increase in Quarterly Dividend
CALABASAS HILLS, Calif.--(BUSINESS WIRE)--Jul. 22, 2015--
The Cheesecake Factory Incorporated (NASDAQ: CAKE) today reported
financial results for the second quarter of fiscal 2015, which ended on
June 30, 2015.
Total revenues were $529.1 million in the second quarter of fiscal 2015
as compared to $496.4 million in the prior year second quarter. Net
income and diluted net income per share were $34.7 million and $0.69,
respectively, in the second quarter of fiscal 2015.
Operating Results
Comparable restaurant sales at The Cheesecake Factory restaurants
increased 2.8% in the second quarter of fiscal 2015.
“We delivered high quality results in the second quarter driven by a
strong comparable sales increase at The Cheesecake Factory, marking our
22nd consecutive quarter of comparable sales gains and
another in which we outperformed the industry by a solid margin,” said
David Overton, Chairman and Chief Executive Officer.
“Our business is performing well across multiple dimensions. We are
operating our restaurants effectively, improving in key areas such as
food efficiency, and maintaining our high guest satisfaction scores. In
addition, favorability in the cost areas that heavily impacted us last
year contributed to significant margin expansion and growth in earnings
per share. We are well positioned as we enter the second half of the
year, with our newer restaurants performing well and our core business
on solid ground,” continued Overton.
Development
The Company opened two The Cheesecake Factory restaurants and one Grand
Lux Cafe restaurant during the second quarter of fiscal 2015. The
Company continues to expect it will open as many as 11 Company-owned
restaurants domestically in fiscal 2015.
Internationally, the Company anticipates no change to as many as three
planned restaurant openings in the Middle East and Mexico under
licensing agreements in fiscal 2015, one of which opened earlier in the
year in Mexico City.
Capital Allocation
The Company’s Board of Directors declared a quarterly cash dividend of
$0.20 per share on the Company’s common stock, which equates to a 21%
increase in the Company’s quarterly dividend. The dividend is payable on
August 18, 2015 to shareholders of record at the close of business on
August 5, 2015.
During the second quarter of fiscal 2015, the Company repurchased 77,340
shares of its common stock at a cost of $3.8 million. Year-to-date, the
Company repurchased 1.7 million shares of its common stock at a cost of
$84.2 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.
“Based on the confidence that we have in the strength of our Company,
our prospects for continued global growth, and the significant level of
cash that our business generates, we took another meaningful step
forward with our dividend and in our ongoing commitment to increase
total shareholder return,” concluded Overton.
Conference Call and Webcast
The Company will hold a conference call to review its results for the
second 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 August 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, through its subsidiaries, owns and operates 192 full-service,
casual dining restaurants throughout the U.S.A. and Puerto Rico,
including 179 restaurants under The Cheesecake Factory® mark; 12
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’s
bakery division operates two bakery production facilities, in Calabasas
Hills, CA and Rocky Mount, NC, that produce quality cheesecakes and
other baked products for its restaurants, international licensees and
third-party bakery customers. 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:
consistently deliver dependable comparable sales results over a
sustained period of time; outperform the casual dining industry;
leverage sales increases and manage flow through; improve its food
efficiency and maintain high guest satisfaction scores; expand its
operating margin and deliver earnings per share growth; open new
restaurants that perform well; utilize capital effectively and continue
to repurchase its common stock; realize opportunities for growth both
domestically and internationally; continue to generate high levels of
cash; and increase shareholder value. In addition, forward-looking
statements made in the press release include uncertainties related to:
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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26 Weeks Ended
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26 Weeks Ended
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Consolidated Statements of Operations
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June 30, 2015
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July 1, 2014
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June 30, 2015
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July 1, 2014
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Percent of
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Percent of
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Percent of
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Percent of
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Amounts
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Revenue
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Amounts
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Revenue
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Amounts
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Revenue
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Amounts
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Revenue
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Revenues
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$
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529,107
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100.0
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%
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$
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496,406
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100.0
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%
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$
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1,047,080
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100.0
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%
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$
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977,837
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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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126,623
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23.9
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%
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120,667
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24.3
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%
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253,235
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24.2
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%
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240,029
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24.5
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%
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Labor expenses
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168,495
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31.8
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%
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160,777
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32.4
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%
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339,664
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32.5
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%
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320,227
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32.7
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%
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Other operating costs and expenses
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123,675
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23.4
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%
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119,577
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24.1
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%
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|
247,110
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23.6
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%
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|
235,210
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24.1
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%
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General and administrative expenses
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35,345
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6.7
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%
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|
29,042
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|
|
5.9
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%
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68,420
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6.5
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%
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60,284
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6.2
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%
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Depreciation and amortization expenses
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21,158
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4.0
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%
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20,534
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|
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4.1
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%
|
|
|
42,335
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4.0
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%
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|
40,785
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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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510
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0.1
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%
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|
-
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-
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|
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|
696
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0.1
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%
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Preopening costs
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4,058
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0.8
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%
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2,608
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|
0.5
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%
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|
|
5,509
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|
|
0.5
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%
|
|
|
4,842
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|
|
0.5
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%
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Total costs and expenses
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479,354
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90.6
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%
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453,715
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|
91.4
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%
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|
956,273
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91.3
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%
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902,073
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|
92.3
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%
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Income from operations
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49,753
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9.4
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%
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42,691
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8.6
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%
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90,807
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8.7
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%
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75,764
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7.7
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%
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Interest and other (expense)/income, net
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(1,432
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)
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(0.3
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)%
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(1,544
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)
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(0.3
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)%
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(3,327
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)
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(0.3
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)%
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(2,935
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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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48,321
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9.1
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%
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41,147
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|
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8.3
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%
|
|
|
87,480
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|
|
8.4
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%
|
|
|
72,829
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|
|
7.4
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%
|
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Income tax provision
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|
|
13,597
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|
|
|
2.5
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%
|
|
|
11,098
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|
|
2.2
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%
|
|
|
24,333
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|
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2.4
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%
|
|
|
20,262
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2.0
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%
|
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Net income
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$
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34,724
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|
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6.6
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%
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$
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30,049
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6.1
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%
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|
$
|
63,147
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|
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6.0
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%
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$
|
52,567
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5.4
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%
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Basic net income per share
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$
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0.72
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|
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$
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0.61
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|
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$
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1.29
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$
|
1.05
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|
|
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Basic weighted average shares outstanding
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48,451
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|
49,349
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48,838
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|
|
|
|
50,044
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Diluted net income per share
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$
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0.69
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$
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0.59
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|
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$
|
1.25
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|
|
|
|
$
|
1.01
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|
|
|
|
Diluted weighted average shares outstanding
|
|
|
50,262
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|
|
|
|
|
51,358
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|
|
|
|
|
50,681
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|
|
|
|
|
52,098
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|
|
|
|
|
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|
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|
|
|
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|
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|
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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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|
|
$
|
483,285
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|
|
|
$
|
451,454
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|
|
|
|
$
|
956,102
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|
|
|
|
$
|
888,060
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|
|
|
|
Other
|
|
|
|
45,822
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|
|
|
|
|
44,952
|
|
|
|
|
|
90,978
|
|
|
|
|
|
89,777
|
|
|
|
|
|
|
|
|
$
|
529,107
|
|
|
|
|
$
|
496,406
|
|
|
|
|
$
|
1,047,080
|
|
|
|
|
$
|
977,837
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations:
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Cheesecake Factory restaurants
|
|
|
|
$
|
77,292
|
|
|
|
|
$
|
65,046
|
|
|
|
|
$
|
143,993
|
|
|
|
|
$
|
123,036
|
|
|
|
|
Other
|
|
|
|
|
5,263
|
|
|
|
|
|
4,589
|
|
|
|
|
|
11,326
|
|
|
|
|
|
9,015
|
|
|
|
|
Corporate
|
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|
|
|
(32,802
|
)
|
|
|
|
|
(26,944
|
)
|
|
|
|
|
(64,512
|
)
|
|
|
|
|
(56,287
|
)
|
|
|
|
|
|
|
|
$
|
49,753
|
|
|
|
|
$
|
42,691
|
|
|
|
|
$
|
90,807
|
|
|
|
|
$
|
75,764
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Selected Consolidated Balance Sheet Information
|
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June 30, 2015
|
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December 30, 2014
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
$
|
61,548
|
|
|
|
|
$
|
58,018
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
|
|
|
1,174,790
|
|
|
|
|
|
1,176,452
|
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
|
|
|
25,000
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
|
|
|
625,671
|
|
|
|
|
|
619,942
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
|
|
|
549,119
|
|
|
|
|
|
556,510
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13 Weeks Ended
|
|
13 Weeks Ended
|
|
26 Weeks Ended
|
|
26 Weeks Ended
|
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Supplemental Information
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June 30, 2015
|
|
July 1, 2014
|
|
June 30, 2015
|
|
July 1, 2014
|
|
The Cheesecake Factory comparable restaurant sales
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|
|
|
|
2.8
|
%
|
|
|
|
|
1.5
|
%
|
|
|
|
3.5
|
%
|
|
|
|
1.5
|
%
|
|
Restaurants opened during period
|
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|
|
|
|
3
|
|
|
|
|
|
2
|
|
|
|
|
3
|
|
|
|
|
3
|
|
|
Restaurants open at period-end
|
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|
|
|
|
192
|
|
|
|
|
|
182
|
|
|
|
|
192
|
|
|
|
|
182
|
|
|
Restaurant operating weeks
|
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|
|
|
|
2,466
|
|
|
|
|
|
2,355
|
|
|
|
|
4,923
|
|
|
|
|
4,702
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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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 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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|
|
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|
|
|
|
|
|
|
|
|
|
|
|
13 Weeks Ended
|
|
13 Weeks Ended
|
|
26 Weeks Ended
|
|
26 Weeks Ended
|
|
|
|
|
|
June 30, 2015
|
|
July 1, 2014
|
|
June 30, 2015
|
|
July 1, 2014
|
|
|
|
|
|
(unaudited; in thousands, except per share data)
|
|
Net income (GAAP)
|
|
$
|
34,724
|
|
$
|
30,049
|
|
$
|
63,147
|
|
$
|
52,567
|
|
After-tax impact from:
|
|
|
|
|
|
|
|
|
|
- Impairment of assets and lease terminations (1)
|
|
|
-
|
|
|
306
|
|
|
-
|
|
|
418
|
|
Net income (non-GAAP)
|
|
$
|
34,724
|
|
$
|
30,355
|
|
$
|
63,147
|
|
$
|
52,985
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per share (GAAP)
|
|
$
|
0.69
|
|
$
|
0.59
|
|
$
|
1.25
|
|
$
|
1.01
|
|
After-tax impact from:
|
|
|
|
|
|
|
|
|
|
- Impairment of assets and lease terminations
|
|
|
-
|
|
|
0.01
|
|
|
-
|
|
|
0.01
|
|
Diluted net income per share (non-GAAP) (2)
|
|
$
|
0.69
|
|
$
|
0.59
|
|
$
|
1.25
|
|
$
|
1.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The pre-tax amounts associated with these items in fiscal 2014
were $510 in the second quarter and $186 in the first quarter, and
were recorded in impairment of assets and lease terminations.
|
|
(2) Diluted net income per share may not add due to rounding.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20150722006061/en/
Source: The Cheesecake Factory Incorporated
The Cheesecake Factory Incorporated
Jill Peters, 818-871-3000
investorrelations@thecheesecakefactory.com