The Cheesecake Factory Reports Results for First Quarter of Fiscal 2009

2009-04-23

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Cheesecake Factory Total revenues were $392.8 million in the first quarter of fiscal 2009 as compared to $393.8 million in the prior year first quarter. Net income and diluted net income per share were $10.0 million and $0.17, respectively.

The Cheesecake Factory Incorporated (NASDAQ:CAKE) today reported financial results for the first quarter of fiscal 2009, which ended on March 31, 2009.

Total revenues were $392.8 million in the first quarter of fiscal 2009 as compared to $393.8 million in the prior year first quarter. Net income and diluted net income per share were $10.0 million and $0.17, respectively.

Operating Results

Comparable restaurant sales decreased 3.4% in the first quarter of fiscal 2009 from the first quarter of the prior year. By concept, comparable restaurant sales decreased 3.2% and 5.0% at The Cheesecake Factory and Grand Lux Cafe, respectively, in the first quarter of fiscal 2009 from the first quarter of the prior year.

'A significant upturn in comparable restaurant sales as compared to the fourth quarter was the principal driver of our better than expected earnings per share in the first quarter,' said David Overton, Chairman and CEO. 'Guest traffic in our restaurants improved sequentially from fourth quarter levels by almost three percentage points, which is noteworthy relative to trends that we saw throughout last year and also reflects competitively strong performance.

'We also began to see results from our cost containment efforts materialize this quarter, primarily with respect to cost of sales. The development of new menu items with favorable food costs, a benefit from certain commodity prices and the ongoing optimization of our supply chain positively impacted our financial results. We implemented a number of cost management initiatives in other areas as well that have and should continue to deliver savings throughout the remainder of the year.

'Finally, we reduced our debt level by $25 million during the first quarter while also increasing our cash balance relative to year-end. Debt reduction will continue to be an area of focus for us, in addition to innovative marketing of our brands and cost containment initiatives. We are pleased with the outcome that we are seeing from our efforts,' concluded Overton.

Development

As planned, the Company opened one new Cheesecake Factory restaurant in the first quarter of fiscal 2009 in Walnut Creek, California. The Company now believes it will open no more than one additional restaurant during the remainder of the year reflecting the readiness and current planned opening dates of the developments in which its restaurants will be located.