The Cheesecake Factory Reports Results for First Quarter of Fiscal 2010
Company Reports Positive Comparable Restaurant Sales at The Cheesecake Factory and Grand Lux Cafe
The Cheesecake Factory Incorporated (NASDAQ: CAKE) today reported financial results for the first quarter of fiscal 2010, which ended on March 30, 2010.
“We are pleased to report positive comparable restaurant sales for the first quarter at both our namesake concept, as well as Grand Lux Cafe”
Total revenues were $405.4 million in the first quarter of fiscal 2010 as compared to $392.8 million in the prior year first quarter. Net income and diluted net income per share were $18.7 million and $0.31, respectively.
Operating Results
Comparable restaurant sales at The Cheesecake Factory and Grand Lux Cafe increased 2.8% in the first quarter of fiscal 2010 from the first quarter of the prior year. By concept, comparable restaurant sales increased 2.7% and 4.0% at The Cheesecake Factory and Grand Lux Cafe, respectively, in the first quarter of fiscal 2010 from the first quarter of the prior year.
“We are pleased to report positive comparable restaurant sales for the first quarter at both our namesake concept, as well as Grand Lux Cafe,” said David Overton, Chairman and CEO. “A continued improvement in guest traffic levels at our restaurants was the basis for the increase in comparable sales, similar to what we experienced throughout most of last year. Guest traffic improved significantly from fourth quarter levels, and we believe that as consumers become more comfortable with discretionary spending, they are returning to their favorite restaurants first.
“Equally as important, we effectively leveraged the increase in comparable sales and delivered a substantial year-over-year improvement in our operating margins. Our focus on retaining the savings from the cost management initiatives that we implemented last year, combined with realizing $5.5 million in savings in the first quarter of this year, were important factors in our ability to steadily drive operating margins back toward historical levels. We are making consistent progress toward this goal in large part due to the commitment from our operators to execute in a high-quality way, but under a leaner cost structure,” concluded Overton.
Development
As planned, the Company opened two new The Cheesecake Factory restaurants in the first quarter of fiscal 2010 in Tucson, Arizona and Newark, Delaware. The Company believes it will open one additional The Cheesecake Factory restaurant during the second half of the year.
Share Repurchases
The Company repurchased 487,068 shares of its common stock during the first quarter of fiscal 2010 at a total cost of approximately $12.5 million, as part of its fiscal 2010 capital allocation strategy.
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 162 full-service, casual dining restaurants throughout the U.S., including 148 restaurants under The Cheesecake Factory
