CALABASAS HILLS, Calif.--(BUSINESS WIRE)--Oct. 26, 2015--
The Cheesecake Factory Incorporated (NASDAQ: CAKE) today reported
financial results for the third quarter of fiscal 2015, which ended on
September 29, 2015.
Total revenues were $526.7 million in the third quarter of fiscal 2015
as compared to $499.1 million in the prior year third quarter. Net
income and diluted net income per share were $26.2 million and $0.52,
respectively, in the third quarter of fiscal 2015.
The Company recorded a pre-tax, non-cash charge of $6.0 million related
to the impairment of RockSugar Pan Asian Kitchen during the third
quarter of fiscal 2015. Excluding this item, net income was $29.8
million and diluted net income per share was $0.59.
Operating Results
Comparable restaurant sales at The Cheesecake Factory restaurants
increased 2.2% in the third quarter of fiscal 2015.
“The consistency of our results continues to be evident as we delivered
our 23rd consecutive quarter of positive comparable sales. We
successfully lapped our most difficult sales comparison of the year and
continued to exceed the performance of the casual dining industry
overall during this past quarter,” said David Overton, Chairman and
Chief Executive Officer.
“We experienced similar cost dynamics to the second quarter, with
favorability in costs that affected our results last year helping to
offset some of the wage inflation that many restaurants and retailers
are experiencing. Our solid sales growth combined with healthy four-wall
and total operating margin expansion drove earnings per share growth in
excess of 20 percent. As we look ahead to 2016, we remain focused on the
long-term drivers of our business – innovation, hospitality and
operational excellence – and are firmly committed to utilizing our
capital to produce the highest returns and maximize total shareholder
return,” concluded Overton.
Development
The Company continues to expect to open as many as 11 Company-owned
restaurants domestically in fiscal 2015. During the remainder of the
fourth quarter, the Company expects to open five restaurants, one of
which is scheduled to open this week.
Internationally, the Company anticipates as many as three restaurants
will open in the Middle East and Mexico under licensing agreements in
fiscal 2015, consistent with its prior expectations. Year to date, one
international location has opened in Mexico.
Capital Allocation
The Company’s Board of Directors declared a quarterly cash dividend of
$0.20 per share on the Company’s common stock. The dividend is payable
on November 23, 2015 to shareholders of record at the close of business
on November 9, 2015.
During the third quarter of fiscal 2015, the Company repurchased 59,522
shares of its common stock at a cost of $3.2 million. Year to date, the
Company repurchased 1.8 million shares of its common stock at a cost of
$87.4 million. The Company repaid the balance on its revolving credit
facility in the third quarter of fiscal 2015, earlier than planned, and
exited the quarter with no funded debt on its balance sheet.
Conference Call and Webcast
The Company will hold a conference call to review its results for the
third 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 November 26, 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 195 full-service,
casual dining restaurants throughout the U.S.A. and Puerto Rico,
including 182 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 increases over a
sustained period of time; outperform the casual dining industry;
leverage sales increases and manage flow through to increase its
restaurant-level margins; manage expenses to expand operating margins;
deliver earnings per share growth; continue to execute on its strategy
focused on innovation, hospitality and operational excellence; utilize
capital effectively and achieve an acceptable level of returns; maximize
total shareholder return. 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.
|
The Cheesecake Factory Incorporated and Subsidiaries
Consolidated Financial Statements
(unaudited; in thousands, except per share and statistical data)
|
|
|
|
|
|
|
13 Weeks Ended
|
|
13 Weeks Ended
|
|
39 Weeks Ended
|
|
39 Weeks Ended
|
|
Consolidated Statements of Operations
|
|
September 29, 2015
|
|
September 30, 2014
|
|
September 29, 2015
|
|
September 30, 2014
|
|
|
|
|
Amounts
|
|
Percent of
Revenue
|
|
Amounts
|
|
Percent of
Revenue
|
|
Amounts
|
|
Percent of
Revenue
|
|
Amounts
|
|
Percent of
Revenue
|
|
Revenues
|
|
$ 526,688
|
|
|
100.0
|
%
|
|
$
|
499,114
|
|
|
|
100.0
|
%
|
|
$
|
1,573,768
|
|
|
100.0
|
%
|
|
$
|
1,476,951
|
|
|
100.0
|
%
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
125,605
|
|
|
23.9
|
%
|
|
|
124,028
|
|
|
|
24.9
|
%
|
|
|
378,840
|
|
|
24.1
|
%
|
|
|
364,057
|
|
|
24.7
|
%
|
|
Labor expenses
|
|
|
172,101
|
|
|
32.7
|
%
|
|
|
163,279
|
|
|
|
32.7
|
%
|
|
|
511,765
|
|
|
32.5
|
%
|
|
|
483,506
|
|
|
32.7
|
%
|
|
Other operating costs and expenses
|
|
128,427
|
|
|
24.4
|
%
|
|
|
123,095
|
|
|
|
24.7
|
%
|
|
|
375,537
|
|
|
23.9
|
%
|
|
|
358,305
|
|
|
24.3
|
%
|
|
General and administrative expenses
|
|
33,277
|
|
|
6.3
|
%
|
|
|
29,641
|
|
|
|
5.9
|
%
|
|
|
101,697
|
|
|
6.5
|
%
|
|
|
89,925
|
|
|
6.1
|
%
|
|
Depreciation and amortization expenses
|
|
21,317
|
|
|
4.0
|
%
|
|
|
20,930
|
|
|
|
4.2
|
%
|
|
|
63,652
|
|
|
4.0
|
%
|
|
|
61,715
|
|
|
4.2
|
%
|
|
Impairment of assets and lease terminations
|
|
6,011
|
|
|
1.1
|
%
|
|
|
-
|
|
|
|
-
|
|
|
|
6,011
|
|
|
0.4
|
%
|
|
|
696
|
|
|
-
|
|
|
Preopening costs
|
|
4,306
|
|
|
0.8
|
%
|
|
|
3,966
|
|
|
|
0.8
|
%
|
|
|
9,815
|
|
|
0.6
|
%
|
|
|
8,808
|
|
|
0.6
|
%
|
|
Total costs and expenses
|
|
491,044
|
|
|
93.2
|
%
|
|
|
464,939
|
|
|
|
93.2
|
%
|
|
|
1,447,317
|
|
|
92.0
|
%
|
|
|
1,367,012
|
|
|
92.6
|
%
|
|
Income from operations
|
|
35,644
|
|
|
6.8
|
%
|
|
|
34,175
|
|
|
|
6.8
|
%
|
|
|
126,451
|
|
|
8.0
|
%
|
|
|
109,939
|
|
|
7.4
|
%
|
|
Interest and other (expense)/income, net
|
|
(722
|
)
|
|
(0.2
|
)%
|
|
|
(1,381
|
)
|
|
|
(0.2
|
)%
|
|
|
(4,049
|
)
|
|
(0.2
|
)%
|
|
|
(4,316
|
)
|
|
(0.2
|
)%
|
|
Income before income taxes
|
|
34,922
|
|
|
6.6
|
%
|
|
|
32,794
|
|
|
|
6.6
|
%
|
|
|
122,402
|
|
|
7.8
|
%
|
|
|
105,623
|
|
|
7.2
|
%
|
|
Income tax provision
|
|
8,746
|
|
|
1.6
|
%
|
|
|
8,571
|
|
|
|
1.7
|
%
|
|
|
33,079
|
|
|
2.1
|
%
|
|
|
28,833
|
|
|
2.0
|
%
|
|
Net income
|
|
|
$ 26,176
|
|
|
5.0
|
%
|
|
$
|
24,223
|
|
|
|
4.9
|
%
|
|
$
|
89,323
|
|
|
5.7
|
%
|
|
$
|
76,790
|
|
|
5.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per share
|
|
$ 0.54
|
|
|
|
|
$
|
0.49
|
|
|
|
|
$
|
1.83
|
|
|
|
|
$
|
1.55
|
|
|
|
|
Basic weighted average shares outstanding
|
|
48,848
|
|
|
|
|
|
48,981
|
|
|
|
|
|
48,841
|
|
|
|
|
|
49,690
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per share
|
|
$ 0.52
|
|
|
|
|
$
|
0.48
|
|
|
|
|
$
|
1.76
|
|
|
|
|
$
|
1.48
|
|
|
|
|
Diluted weighted average shares outstanding
|
|
50,637
|
|
|
|
|
|
50,963
|
|
|
|
|
|
50,660
|
|
|
|
|
|
51,722
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Segment Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Cheesecake Factory restaurants
|
|
|
$ 481,076
|
|
|
|
|
$
|
454,271
|
|
|
|
|
$
|
1,437,178
|
|
|
|
|
$
|
1,342,331
|
|
|
|
|
Other
|
|
45,612
|
|
|
|
|
|
44,843
|
|
|
|
|
|
136,590
|
|
|
|
|
|
134,620
|
|
|
|
|
|
|
|
$ 526,688
|
|
|
|
|
$
|
499,114
|
|
|
|
|
$
|
1,573,768
|
|
|
|
|
$
|
1,476,951
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Cheesecake Factory restaurants (1)
|
|
|
$ 67,473
|
|
|
|
|
$
|
59,214
|
|
|
|
|
$
|
211,466
|
|
|
|
|
$
|
182,250
|
|
|
|
|
Other (2)
|
|
|
(725
|
)
|
|
|
|
|
2,418
|
|
|
|
|
|
10,601
|
|
|
|
|
|
11,433
|
|
|
|
|
Corporate
|
|
|
(31,104
|
)
|
|
|
|
|
(27,457
|
)
|
|
|
|
|
(95,616
|
)
|
|
|
|
|
(83,744
|
)
|
|
|
|
|
|
|
$ 35,644
|
|
|
|
|
$
|
34,175
|
|
|
|
|
$
|
126,451
|
|
|
|
|
$
|
109,939
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Consolidated Balance Sheet Information
|
|
September 29, 2015
|
|
December 30, 2014
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$ 29,607
|
|
|
|
|
$
|
58,018
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
1,175,856
|
|
|
|
|
|
1,176,452
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
596,317
|
|
|
|
|
|
619,942
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
579,539
|
|
|
|
|
|
556,510
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13 Weeks Ended
|
|
13 Weeks Ended
|
|
39 Weeks Ended
|
|
39 Weeks Ended
|
|
Supplemental Information
|
|
September 29, 2015
|
|
September 30, 2014
|
|
September 29, 2015
|
|
September 30, 2014
|
|
The Cheesecake Factory comparable restaurant sales
|
|
|
2.2
|
%
|
|
|
|
|
2.1
|
%
|
|
|
|
3.0
|
%
|
|
|
|
1.6
|
%
|
|
Restaurants opened during period
|
|
|
|
2
|
|
|
|
|
|
2
|
|
|
|
|
5
|
|
|
|
|
5
|
|
|
Restaurants open at period-end
|
|
|
|
194
|
|
|
|
|
|
184
|
|
|
|
|
194
|
|
|
|
|
184
|
|
|
Restaurant operating weeks
|
|
|
|
2,505
|
|
|
|
|
|
2,383
|
|
|
|
|
7,428
|
|
|
|
|
7,085
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes $696 in the 39 weeks ended September 30, 2014 of lease
termination expenses related to the relocation of one The Cheesecake
Factory restaurant.
(2) Includes $6.0 million in the 13 and 39
weeks ended September 29, 2015 of impairment expense related to
RockSugar Pan Asian Kitchen.
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.
|
|
|
|
|
|
|
|
|
|
|
|
|
13 Weeks Ended
|
|
13 Weeks Ended
|
|
39 Weeks Ended
|
|
39 Weeks Ended
|
|
|
|
September 29, 2015
|
|
September 30, 2014
|
|
September 29, 2015
|
|
September 30, 2014
|
|
|
|
(unaudited; in thousands, except per share data)
|
|
Net income (GAAP)
|
|
$
|
26,176
|
|
$
|
24,223
|
|
$
|
89,323
|
|
$
|
76,790
|
|
After-tax impact from:
|
|
|
|
|
|
|
|
|
|
- Impairment of assets and lease terminations (1)
|
|
|
3,607
|
|
|
-
|
|
|
3,607
|
|
|
418
|
|
Net income (non-GAAP)
|
|
$
|
29,783
|
|
$
|
24,223
|
|
$
|
92,930
|
|
$
|
77,208
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per share (GAAP)
|
|
$
|
0.52
|
|
$
|
0.48
|
|
$
|
1.76
|
|
$
|
1.48
|
|
After-tax impact from:
|
|
|
|
|
|
|
|
|
|
- Impairment of assets and lease terminations
|
|
|
0.07
|
|
|
-
|
|
|
0.07
|
|
|
0.01
|
|
Diluted net income per share (non-GAAP)
|
|
$
|
0.59
|
|
$
|
0.48
|
|
$
|
1.83
|
|
$
|
1.49
|
|
|
|
|
|
|
|
|
|
|
(1) The pre-tax amount associated with the item in fiscal 2015 was $6.0
million. The pre-tax amount associated with the item in fiscal 2014 was
$696.
View source version on businesswire.com: http://www.businesswire.com/news/home/20151026006336/en/
Source: The Cheesecake Factory Incorporated
The Cheesecake Factory Incorporated
Jill Peters, (818) 871-3000
investorrelations@thecheesecakefactory.com