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.
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.
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.
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.
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.
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|
|Costs and expenses:|
|Cost of sales||130,773||23.6||%||126,612||24.4||%|
|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||%|
|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||%|
|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||$||0.56|
|Diluted weighted average shares outstanding||50,037||51,102|
|Selected Segment Information|
|The Cheesecake Factory restaurants||$||506,316||$||472,817|
|Income from operations:|
|The Cheesecake Factory restaurants||$||74,292||$||66,701|
|Selected Consolidated Balance Sheet Information||March 29, 2016||December 29, 2015|
|Cash and cash equivalents||$||53,922||$||43,854|
|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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