The Cheesecake Factory Reports Results for First Quarter of Fiscal 2016
April 27 2016 - 3:15PM
Business Wire
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
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version on businesswire.com: http://www.businesswire.com/news/home/20160427006467/en/
The Cheesecake Factory IncorporatedW. Douglas Benn, (818)
871-3000investorrelations@thecheesecakefactory.com
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