The Cheesecake Factory Reports Results for First Quarter of Fiscal 2015
April 22 2015 - 3:15PM
Business Wire
The Cheesecake Factory Incorporated (NASDAQ: CAKE) today
reported financial results for the first quarter of fiscal 2015,
which ended on March 31, 2015.
Total revenues were $518.0 million in the first quarter of
fiscal 2015 as compared to $481.4 million in the prior year first
quarter. Net income and diluted net income per share were $28.4
million and $0.56, respectively, in the first quarter of fiscal
2015.
Operating Results
Comparable restaurant sales at The Cheesecake Factory
restaurants increased 4.2% in the first quarter of fiscal 2015.
“We delivered a remarkable comparable sales increase at The
Cheesecake Factory in the first quarter, beginning our sixth
consecutive year of achieving positive quarterly comparable sales.
Importantly, we experienced a solid increase in guest traffic
during the quarter on the strength of our brand and highly
differentiated guest experience. We also performed particularly
well from a competitive standpoint, considerably outpacing the
industry and increasing our market share,” said David Overton,
Chairman and Chief Executive Officer.
“Our operators did an excellent job of leveraging the increase
in sales by appropriately managing flow through, which drove a
meaningful increase in margins and earnings growth. The demand for
our brand combined with our operational execution drove strong
overall performance this quarter, as we deliver on our commitment
to increase shareholder value,” concluded Overton.
Development
The Company continues to expect to open as many as 11
Company-owned restaurants domestically in fiscal 2015. The first
Company-owned restaurant opening is expected in the second quarter
of fiscal 2015.
Internationally, one new Cheesecake Factory restaurant opened in
Mexico in the first quarter of fiscal 2015 under a licensing
agreement. The Company now expects as many as three restaurants to
open in the Middle East and Mexico under licensing agreements in
fiscal 2015.
Capital Allocation
The Company’s Board of Directors declared a quarterly cash
dividend of $0.165 per share on the Company’s common stock. The
dividend is payable on May 19, 2015 to shareholders of record at
the close of business on May 6, 2015.
During the first quarter of fiscal 2015, the Company repurchased
1.7 million shares of its common stock at a cost of $80.4 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.
Conference Call and Webcast
The Company will hold a conference call to review its results
for the first 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 May 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 operates 189 full-service, casual dining
restaurants throughout the U.S. and Puerto Rico, including 177
restaurants under The Cheesecake Factory® mark; 11 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 also operates two bakery production facilities in
Calabasas Hills, CA and Rocky Mount, NC that produce quality
cheesecakes and other baked products. 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 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”), 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 Consolidated Statements of
Operations March 31, 2015 April 1, 2014
Amount
Percent of Revenues
Amount
Percent of Revenues
Revenues $ 517,973 100.0 %
$ 481,431 100.0 % Costs and
expenses: Cost of sales 126,612 24.4
% 119,362 24.8 % Labor expenses
171,169 33.0 % 159,450 33.1
% Other operating costs and expenses 123,435
23.8 % 115,633 24.0 % General
and administrative expenses 33,075 6.4 %
31,242 6.5 % Depreciation and amortization
expenses 21,177 4.1 % 20,251
4.2 % Impairment of assets and lease
terminations - - 186 -
Preopening costs 1,451
0.4 % 2,234 0.5
% Total costs and expenses 476,919
92.1 % 448,358
93.1 % Income from operations
41,054 7.9 % 33,073 6.9 %
Interest and other (expense)/income, net
(1,895 ) (0.3 )%
(1,391 ) (0.3 )% Income
before income taxes 39,159 7.6 %
31,682 6.6 % Income tax provision
10,736 2.1 %
9,164 1.9 % Net income
$ 28,423 5.5 % $
22,518 4.7 % Basic net
income per share $ 0.58 $
0.44 Basic weighted average shares outstanding
49,225 50,745
Diluted net income per share $ 0.56
$ 0.43 Diluted weighted average shares
outstanding 51,102 52,844
Selected Segment Information Revenues:
The Cheesecake Factory restaurants $ 472,817
$ 436,606 Other 45,156
44,825 $ 517,973 $
481,431 Income from operations: The
Cheesecake Factory restaurants $ 66,701 $
57,990 Other 6,063 4,426
Corporate (31,710 )
(29,343 ) $ 41,054 $
33,073 Selected Consolidated Balance
Sheet Information March 31, 2015 December 30,
2014 Cash and cash equivalents $ 39,478
$ 58,018 Total assets 1,128,726
1,176,452 Long-term debt 25,000 -
Total liabilities 622,222 619,942
Stockholders' equity 506,504 556,510
13 Weeks Ended 13 Weeks Ended Supplemental
Information March 31, 2015 April 1, 2014 The
Cheesecake Factory comparable restaurant sales 4.2
% 1.2 % Restaurants opened during
period - 1 Restaurants open at period-end
189 181 Restaurant operating weeks
2,457 2,347
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 a certain
item.
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 March
31, 2015 April 1, 2014 (unaudited; in thousands,
except per share data) Net income (GAAP) $
28,423 $ 22,518 After-tax impact from:
- Impairment of assets and lease terminations (1)
-
112 Net income (non-GAAP) $
28,423 $ 22,630 Diluted net income
per share (GAAP) After-tax impact from: $
0.56 $ 0.43 - Impairment of assets and
lease terminations (1) - 0.00
Diluted net income per share (non-GAAP) $ 0.56
$ 0.43
(1) The pre-tax amount associated with this item was $186 in the
first quarter of fiscal 2014 and was recorded in impairment of
assets and lease terminations in the consolidated statements of
operations.
The Cheesecake Factory IncorporatedJill Peters, (818)
871-3000investorrelations@thecheesecakefactory.com
Cheesecake Factory (NASDAQ:CAKE)
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