CALABASAS HILLS, Calif.--(BUSINESS WIRE)--Apr. 27, 2016--
The Cheesecake Factory Incorporated (NASDAQ: CAKE) today reported
financial results for the first quarter of fiscal 2016, which ended on
March 29, 2016.
Total revenues were $553.7 million in the first quarter of fiscal 2016
as compared to $518.0 million in the prior year first quarter. Net
income and diluted net income per share were $34.0 million and $0.68,
respectively, in the first quarter of fiscal 2016.
Operating Results
Comparable restaurant sales at The Cheesecake Factory restaurants
increased 1.7% in the first quarter of fiscal 2016.
“We effectively kicked off 2016 with another quarter of positive
comparable sales, our 25th in a row. Consistent and
predictable performance is a hallmark of The Cheesecake Factory and is
representative of the highly differentiated guest experience our
operations team delivers every day. Our share of wallet continues to
increase as we delivered dependable competitive performance and again
outpaced the casual dining industry,” said David Overton, Chairman and
Chief Executive Officer.
“Operational excellence and the sustained demand for our brand, as
illustrated by our recent recognition as the No. 1 casual dining concept
in Nation’s Restaurant News’ Consumer Picks Survey, both contributed to
our strong start to the year. With solid overall sales growth and
effective management of our expenses throughout the income statement, we
captured measurable gains in operating margins and earnings per share.
Our returns-focused growth demonstrates our commitment to increase
shareholder value,” concluded Overton.
Development
The Company continues to expect to open as many as eight Company-owned
restaurants domestically in fiscal 2016. The first Company-owned
restaurant opened in Albuquerque, New Mexico in February and the next
location is expected to open in the second quarter of this year.
Internationally, the Company is still expecting as many as four to five
restaurants to open under licensing agreements in fiscal 2016. This
includes the first The Cheesecake Factory in China, which is scheduled
to open mid year in Disneytown, part of the Shanghai Disney resort.
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 May 24, 2016 to shareholders of record at the close of business on
May 11, 2016.
During the first quarter of fiscal 2016, the Company repurchased 1.0
million shares of its common stock at a cost of $50.0 million. The
Company continues to expect that it will return its free cash flow to
shareholders in fiscal 2016 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 2016 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 26, 2016.
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 201 full-service,
casual dining restaurants throughout the U.S.A. and Puerto Rico,
including 188 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, 11 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 2016, the Company was named to the
FORTUNE Magazine “100 Best Companies to Work For®” list for the third
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 3,
2016 ©2016 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”).
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
Condensed Consolidated Financial Statements
(unaudited; in thousands, except per share and statistical data)
|
|
|
|
|
|
|
|
|
|
13 Weeks Ended
|
|
13 Weeks Ended
|
|
Consolidated Statements of Operations
|
|
March 29, 2016
|
|
March 31, 2015
|
|
|
|
Amount
|
Percent of
Revenues
|
|
Amount
|
Percent of
Revenues
|
|
Revenues
|
|
$
|
553,693
|
|
|
100.0
|
%
|
|
$
|
517,973
|
|
|
100.0
|
%
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
130,773
|
|
|
23.6
|
%
|
|
|
126,612
|
|
|
24.4
|
%
|
|
Labor expenses
|
|
|
185,658
|
|
|
33.5
|
%
|
|
|
171,169
|
|
|
33.0
|
%
|
|
Other operating costs and expenses
|
|
|
129,557
|
|
|
23.4
|
%
|
|
|
123,435
|
|
|
23.8
|
%
|
|
General and administrative expenses
|
|
|
35,337
|
|
|
6.4
|
%
|
|
|
33,075
|
|
|
6.4
|
%
|
|
Depreciation and amortization expenses
|
|
|
21,464
|
|
|
3.9
|
%
|
|
|
21,177
|
|
|
4.1
|
%
|
|
Preopening costs
|
|
|
2,310
|
|
|
0.4
|
%
|
|
|
1,451
|
|
|
0.4
|
%
|
|
Total costs and expenses
|
|
|
505,099
|
|
|
91.2
|
%
|
|
|
476,919
|
|
|
92.1
|
%
|
|
Income from operations
|
|
|
48,594
|
|
|
8.8
|
%
|
|
|
41,054
|
|
|
7.9
|
%
|
|
Interest and other (expense)/income, net
|
|
|
(2,304
|
)
|
|
(0.4
|
)%
|
|
|
(1,895
|
)
|
|
(0.3
|
)%
|
|
Income before income taxes
|
|
|
46,290
|
|
|
8.4
|
%
|
|
|
39,159
|
|
|
7.6
|
%
|
|
Income tax provision
|
|
|
12,336
|
|
|
2.3
|
%
|
|
|
10,736
|
|
|
2.1
|
%
|
|
Net income
|
|
$
|
33,954
|
|
|
6.1
|
%
|
|
$
|
28,423
|
|
|
5.5
|
%
|
|
|
|
|
|
|
|
|
|
|
Basic net income per share
|
|
$
|
0.70
|
|
|
|
$
|
0.58
|
|
|
|
Basic weighted average shares outstanding
|
|
|
48,518
|
|
|
|
|
49,225
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per share
|
|
$
|
0.68
|
|
|
|
$
|
0.56
|
|
|
|
Diluted weighted average shares outstanding
|
|
50,037
|
|
|
|
|
51,102
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Segment Information
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
The Cheesecake Factory restaurants
|
|
$
|
506,316
|
|
|
|
$
|
472,817
|
|
|
|
Other
|
|
|
|
47,377
|
|
|
|
|
45,156
|
|
|
|
|
|
$
|
553,693
|
|
|
|
$
|
517,973
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations:
|
|
|
|
|
|
|
|
The Cheesecake Factory restaurants
|
|
$
|
74,292
|
|
|
|
$
|
66,701
|
|
|
|
Other
|
|
|
|
6,912
|
|
|
|
|
6,063
|
|
|
|
Corporate
|
|
|
(32,610
|
)
|
|
|
|
(31,710
|
)
|
|
|
|
|
$
|
48,594
|
|
|
|
$
|
41,054
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Consolidated Balance Sheet Information
|
|
March 29, 2016
|
|
December 29, 2015
|
|
Cash and cash equivalents
|
|
|
$
|
53,922
|
|
|
|
$
|
43,854
|
|
|
Total assets
|
|
|
|
|
1,192,651
|
|
|
|
|
1,233,346
|
|
|
Total liabilities
|
|
|
|
|
607,091
|
|
|
|
|
644,807
|
|
|
Stockholders’ equity
|
|
|
|
|
585,560
|
|
|
|
|
588,539
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13 Weeks Ended
|
|
13 Weeks Ended
|
|
The Cheesecake Factory Supplemental Information
|
|
March 29, 2016
|
|
March 31, 2015
|
|
Comparable restaurant sales
|
|
|
|
1.7
|
%
|
|
|
|
4.2
|
%
|
|
Restaurants opened during period
|
|
|
|
1
|
|
|
|
|
-
|
|
|
Restaurants open at period-end
|
|
|
|
188
|
|
|
|
|
177
|
|
|
Restaurant operating weeks
|
|
|
|
2,436
|
|
|
|
|
2,301
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160427006467/en/
Source: The Cheesecake Factory Incorporated
The Cheesecake Factory Incorporated
W. Douglas Benn, (818) 871-3000
investorrelations@thecheesecakefactory.com