The Cheesecake Factory Reports Results for Fourth Quarter of Fiscal 2006
Total revenues for the fourth quarter of fiscal 2006 were $360.7 million, an approximate 18% increase from the fourth quarter of fiscal 2005, on a 13-week basis.
Fiscal 2005 was a 53-week year for the Company, with an additional week in the fourth quarter, while fiscal 2006 was a 52-week year. On a reported basis, revenues increased approximately 10% in the fourth quarter of fiscal 2006 from $328.6 million in the prior year period.
Net income was $20.4 million and diluted net income per share was $0.26 in the fourth quarter of fiscal 2006. Excluding the approximate $0.05 per share impact from stock option expensing in the current year quarter, diluted net income per share increased $0.03, or approximately 11% from the comparable quarter of the prior year. Again, please note that the prior year fourth quarter included an extra operating week.
The Company adopted the requirements related to expensing stock-based compensation in accordance with Statement of Financial Accounting Standards No. 123 (revised 2004), 'Share-Based Payment' ('SFAS 123R') on a prospective basis beginning in the first quarter of fiscal 2006.
Comparable restaurant sales increased 0.8% in the fourth quarter of fiscal 2006. By concept, comparable restaurant sales increased 0.4% at The Cheesecake Factory and increased 7.8% at Grand Lux Cafe in the fourth quarter of fiscal 2006.
'We were very pleased with the positive sales trend in the fourth quarter,' commented David Overton, Chairman and CEO. 'We experienced reduced volatility in guest traffic, strong gift card sales, a solid sales contribution from our new restaurants and robust third party bakery sales in the fourth quarter.'
New Restaurant Openings
'We achieved our stated goal of opening 13 new restaurants in the fourth quarter of fiscal 2006 and 21 new restaurants for the year,' continued Overton. 'As a group, the 13 new restaurants that opened during the fourth quarter delivered average weekly sales of approximately $210,000 since opening, with several locations in both new and existing markets significantly exceeding that amount. This strong performance demonstrates the continued demand for our concepts and gives us confidence about our site selection methodology.'
The Company plans to open as many as 21 new restaurants in fiscal 2007, including as many as five to six Grand Lux Cafes. Consistent with prior years, the majority of the new restaurant openings will occur during the second half of the year. The Company anticipates that one new restaurant will open during the first quarter of fiscal 2007, which will be a Grand Lux Cafe in Aventura, Florida. Signed leases or letters of intent are in-hand for most of the potential 2007 openings. The Company will provide updates as to the expected number and timing of restaurant openings during the year when it releases quarterly financial results.
Net income was $20.4 million and diluted net income per share was $0.26 in the fourth quarter of fiscal 2006. Excluding the approximate $0.05 per share impact from stock option expensing in the current year quarter, diluted net income per share increased $0.03, or approximately 11% from the comparable quarter of the prior year. Again, please note that the prior year fourth quarter included an extra operating week.
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The Company adopted the requirements related to expensing stock-based compensation in accordance with Statement of Financial Accounting Standards No. 123 (revised 2004), 'Share-Based Payment' ('SFAS 123R') on a prospective basis beginning in the first quarter of fiscal 2006.
Comparable restaurant sales increased 0.8% in the fourth quarter of fiscal 2006. By concept, comparable restaurant sales increased 0.4% at The Cheesecake Factory and increased 7.8% at Grand Lux Cafe in the fourth quarter of fiscal 2006.
'We were very pleased with the positive sales trend in the fourth quarter,' commented David Overton, Chairman and CEO. 'We experienced reduced volatility in guest traffic, strong gift card sales, a solid sales contribution from our new restaurants and robust third party bakery sales in the fourth quarter.'
New Restaurant Openings
'We achieved our stated goal of opening 13 new restaurants in the fourth quarter of fiscal 2006 and 21 new restaurants for the year,' continued Overton. 'As a group, the 13 new restaurants that opened during the fourth quarter delivered average weekly sales of approximately $210,000 since opening, with several locations in both new and existing markets significantly exceeding that amount. This strong performance demonstrates the continued demand for our concepts and gives us confidence about our site selection methodology.'
The Company plans to open as many as 21 new restaurants in fiscal 2007, including as many as five to six Grand Lux Cafes. Consistent with prior years, the majority of the new restaurant openings will occur during the second half of the year. The Company anticipates that one new restaurant will open during the first quarter of fiscal 2007, which will be a Grand Lux Cafe in Aventura, Florida. Signed leases or letters of intent are in-hand for most of the potential 2007 openings. The Company will provide updates as to the expected number and timing of restaurant openings during the year when it releases quarterly financial results.
