CALABASAS HILLS, Calif.--(BUSINESS WIRE)--Jun. 13, 2017--
The Cheesecake Factory Incorporated (NASDAQ: CAKE) today updated
its outlook for second quarter fiscal 2017 comparable sales ahead of two
conference presentations this week. The Company now expects comparable
sales at The Cheesecake Factory restaurants for the second quarter of
fiscal 2017 to be down approximately 1%. The Company expects this to
impact second quarter margins and earnings per share.
“We have continued to outperform the casual dining industry quarter to
date, with over half of our regions posting positive comparable sales
for the period, including key markets of California, Texas and Florida,”
said David Overton, Chairman and Chief Executive Officer. “More broadly
however, we have seen heightened volatility in week to week sales
trends, indicative of uncertainty on the part of many consumers.
Specifically, we have seen pockets of softness as we moved through the
quarter, notably in the East and Midwest where we also faced unfavorable
weather that reduced patio usage.”
Overton continued, “We believe The Cheesecake Factory brand is as strong
as ever and our underlying operating metrics remain solid. We are
managing the business for the long term, continuing to provide delicious
and memorable dining experiences for our guests, while executing on our
diversified growth drivers and effectively allocating our strong cash
flow to position the Company to generate sustained shareholder returns.”
The Company will present at the William Blair 37th Annual
Growth Stock Conference in Chicago today at 8:50 a.m. Central Time and
the Piper Jaffray 37th Annual Consumer Conference in New York
City tomorrow at 9:05 a.m. Eastern Time. The presentations will be
webcast on the Company’s website at investors.thecheesecakefactory.com.
A replay of the webcasts will be available following the live
presentations.
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 207 full-service,
casual dining restaurants throughout the U.S.A. and Puerto Rico,
including 193 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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Source: The Cheesecake Factory Incorporated
The Cheesecake Factory
Stacy Feit, 818-871-3000
investorrelations@thecheesecakefactory.com