CALABASAS HILLS, Calif.--(BUSINESS WIRE)--May 3, 2017--
The Cheesecake Factory Incorporated (NASDAQ: CAKE) today reported
financial results for the first quarter of fiscal 2017, which ended on
April 4, 2017.
Total revenues were $563.4 million in the first quarter of fiscal 2017
as compared to $553.7 million in the first quarter of fiscal 2016. Net
income and diluted net income per share were $35.0 million and $0.71,
respectively, in the first quarter of fiscal 2017.
The Company recorded a pre-tax, non-cash charge of $0.8 million during
the first quarter of fiscal 2017 related to the planned relocation of
one The Cheesecake Factory restaurant. Excluding this item, net income
and diluted net income per share were $35.5 million and $0.72,
respectively.
Comparable restaurant sales at The Cheesecake Factory restaurants
increased 0.3% in the first quarter of fiscal 2017.
“Our first quarter results were in line with our expectations as we
posted our 29th consecutive quarter of positive comparable
sales, again outperforming the casual dining industry,” said David
Overton, Chairman and Chief Executive Officer. “We remain top of mind
with our guests; in fact, The Cheesecake Factory was named brand of the
year in the casual dining category of the Harris Poll EquiTrend®
study. In addition, we were recently recognized as one of the “100 Best
Companies to Work For®” by Fortune magazine for the
fourth consecutive year, reinforcing that we continue to be an employer
of choice in the restaurant industry.”
Overton concluded, “We recently achieved two exciting international
milestones. Our first location in Hong Kong opened under a licensing
agreement earlier this week and we will bring The Cheesecake Factory
concept to Canada, with the execution of the lease for our first
Company-owned international location in Toronto.”
Development
The Company continues to expect to open as many as eight Company-owned
restaurants in fiscal 2017, including one relocation, which is slated to
open in the second quarter.
In addition, the Company continues to expect as many as four to five
restaurants to open under licensing agreements internationally in fiscal
2017. This includes the first location in Hong Kong, which opened
earlier this week.
Capital Allocation
The Company’s Board of Directors declared a quarterly cash dividend of
$0.24 per share on the Company’s common stock. The dividend is payable
on May 30, 2017 to shareholders of record at the close of business on
May 17, 2017.
During the first quarter of fiscal 2017, the Company repurchased
approximately 150,000 shares of its common stock at a cost of $9.3
million. The Company continues to expect that it will return its free
cash flow to shareholders in fiscal 2017 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 2017 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 June 2, 2017.
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 208 full-service,
casual dining restaurants throughout the U.S.A. and Puerto Rico,
including 194 restaurants under The Cheesecake Factory® mark;
13 restaurants under the Grand Lux Cafe® mark; and one
restaurant under the Rock Sugar Pan Asian Kitchen® mark.
Internationally, 16 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 2017, the Company was named to the FORTUNE Magazine
“100 Best Companies to Work For®” list for the fourth
consecutive year. To learn more about the Company, visit www.thecheesecakefactory.com.
FORTUNE and FORTUNE 100 Best Companies to Work For® are registered
trademarks of Time Inc. and are used under license. From FORTUNE
Magazine, March 15, 2017 ©2017 Time Inc. Used under license. 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; deliver increases in guest traffic; provide a
differentiated experience to guests; outperform the casual dining
industry and increase its market share; leverage sales increases and
manage flow through; increase margins; grow earnings; remain relevant to
consumers; attract and retain qualified management and other staff;
increase shareholder value; profitably expand its concepts domestically
and in Canada, and work with its licensees to expand its concept
internationally; support the growth of North Italia and Flower Child
restaurants; develop a fast casual concept; utilize its capital
effectively and continue to repurchase its shares; and factors outside
of the Company’s control including: economic and political conditions
that impact consumer confidence and spending; acceptance and success of
The Cheesecake Factory in international markets; the risks of doing
business abroad through Company-owned restaurants and/or licensees;
foreign exchange rates and potential changes in NAFTA and cross border
taxation; 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.
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The Cheesecake Factory Incorporated
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Condensed Consolidated Financial Statements
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(unaudited; in thousands, except per share and statistical data)
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Consolidated Statement of Operations
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13 Weeks Ended
April 4, 2017
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13 Weeks Ended
March 29, 2016
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Percent of
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Percent of
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Amount
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Revenues
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Amount
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Revenues
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Revenues
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$
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563,426
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100.0
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%
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$
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553,693
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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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129,139
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22.9
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%
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130,773
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23.6
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%
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Labor expenses
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193,835
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34.4
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%
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185,658
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33.5
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%
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Other operating costs and expenses
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135,650
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24.1
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%
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129,557
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23.4
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%
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General and administrative expenses
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36,287
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6.4
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%
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35,337
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6.4
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%
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Depreciation and amortization expenses
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23,196
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4.1
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%
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21,464
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3.9
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%
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Impairment of assets and lease terminations
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786
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0.1
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%
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-
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0.0
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%
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Preopening costs
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970
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0.3
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%
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2,310
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0.4
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%
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Total costs and expenses
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519,863
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92.3
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%
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505,099
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91.2
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%
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Income from operations
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43,563
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7.7
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%
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48,594
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8.8
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%
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Interest and other expense, net
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(1,256
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)
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(0.2
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)%
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(2,304
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)
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(0.4
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)%
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Income before income taxes
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42,307
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7.5
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%
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46,290
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8.4
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%
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Income tax provision
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7,264
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1.3
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%
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12,336
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2.3
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%
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Net income
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$
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35,043
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6.2
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%
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$
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33,954
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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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0.74
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$
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0.70
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Basic weighted average shares outstanding
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47,634
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|
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48,518
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|
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|
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Diluted net income per share
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$
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0.71
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|
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$
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0.68
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Diluted weighted average shares outstanding
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49,210
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|
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50,037
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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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515,234
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$
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506,316
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Other
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48,192
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47,377
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Total
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$
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563,426
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$
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553,693
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Income/(loss) from operations:
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The Cheesecake Factory restaurants (1) |
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$
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70,543
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$
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74,292
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Other
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6,638
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|
|
|
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6,912
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Corporate
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(33,618
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)
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(32,610
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)
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Total
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$
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43,563
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$
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48,594
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(1) Includes $0.8 million of accelerated depreciation expense
related to the planned relocation of one The Cheesecake Factory
restaurant in the thirteen weeks ended April 4, 2017. This amount
was recorded in impairment of assets and lease terminations in the
condensed consolidated statements of income.
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Selected Consolidated Balance Sheet Information
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April 4, 2017
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January 3, 2017
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Cash and cash equivalents
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$
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65,666
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$
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53,839
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Total assets
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1,276,828
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1,293,319
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Total liabilities
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649,293
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690,112
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Stockholders' equity
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627,535
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603,207
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The Cheesecake Factory Supplemental Information
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13 Weeks Ended
April 4, 2017
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13 Weeks Ended
March 29, 2016
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Comparable restaurant sales
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0.3
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%
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1.7
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%
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Restaurants opened during period
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-
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1
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Restaurants open at period-end
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194
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|
188
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Restaurant operating weeks
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2,522
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|
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|
2,436
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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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The Cheesecake Factory Incorporated
|
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Reconciliation of Non-GAAP Financial Measures
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(unaudited; in thousands, except per share data)
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13 Weeks Ended
April 4, 2017
|
|
13 Weeks Ended
March 29, 2016
|
|
|
|
|
|
|
|
Net income (GAAP)
|
|
$
|
35,043
|
|
$
|
33,954
|
|
After-tax impact from:
|
|
|
|
|
|
- Impairment of assets and lease terminations (1) |
|
|
472
|
|
|
-
|
|
Adjusted net income (non-GAAP)
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$
|
35,515
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$
|
33,954
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Diluted net income per share (GAAP)
|
|
$
|
0.71
|
|
$
|
0.68
|
|
After-tax impact from:
|
|
|
|
|
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- Impairment of assets and lease terminations
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|
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0.01
|
|
|
-
|
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Adjusted diluted net income per share (non-GAAP)
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$
|
0.72
|
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$
|
0.68
|
|
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(1) The pre-tax amount associated with the item in fiscal 2017 was
$786 and was recorded in impairment of assets and lease terminations.
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View source version on businesswire.com: http://www.businesswire.com/news/home/20170503006129/en/
Source: The Cheesecake Factory Incorporated
The Cheesecake Factory Incorporated
Stacy Feit
(818) 871-3000
investorrelations@thecheesecakefactory.com