EX-99.1 2 a09-10922_1ex99d1.htm EX-99.1

Exhibit 99.1

 

PRESS RELEASE

 

FOR IMMEDIATE RELEASE

 

Contact: Jill Peters

 

 

(818) 871-8342

 

 

jpeters@thecheesecakefactory.com

 

THE CHEESECAKE FACTORY REPORTS RESULTS FOR

FIRST QUARTER OF FISCAL 2009

 

Calabasas Hills, CA — April 23, 2009 — 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.

 

26901 Malibu Hills Road, Calabasas Hills, CA 91301 · Telephone (818) 871-3000 · Fax (818) 871-3100

 


 

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.

 

Conference Call and Webcast

 

A conference call to review the Company’s results for the first quarter of fiscal 2009 will be held today at 2:00 p.m. Pacific Time.  The conference call will be broadcast live over the Internet and a replay will be available shortly after the call and continue through May 23, 2009.  To listen to the conference call, please go to the Company’s website at thecheesecakefactory.com at least 15 minutes prior to the start of the call to register and download any necessary audio software. Click on the “Investors” link on the home page and select the conference call link at the top of the page.

 

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 146 restaurants throughout the U.S. under The Cheesecake Factoryâ name with an extensive menu of more than 200 items and fiscal 2008 average annual unit sales of approximately $9.8 million.  Grand Lux Cafeâ, the Company’s second concept, has 13 units in operation across the U.S. offering a broad menu of more than 150 items and average annual unit sales of approximately $10.6 million in fiscal 2008.  The Company also operates one unit of its newest concept, RockSugar Pan Asian Kitchenâ, and two bakery production facilities in Calabasas Hills, CA and Rocky Mount, NC that produce over 70 varieties of quality cheesecakes and other baked products.  Additionally, the Company licenses two bakery cafe outlets to another foodservice operator under The Cheesecake Factory Bakery Cafeâ mark.  For more information, please visit thecheesecakefactory.com.

 

Safe Harbor Statement

 

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements in this release are generally identified by words such as “believes,” “anticipates,” “plans,” “expects,” “will,” and “would,” and similar expressions that are intended to identify forward-looking statements.  Forward-looking 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.  Investors are cautioned that forward-looking statements are not guarantees of future performance and that undue reliance should not be placed on such statements.  In particular, forward-looking statements regarding the Company’s restaurant sales trends are subject to risks and uncertainties due to macro national and regional economic and credit market conditions, rising unemployment, public safety conditions, adverse weather and other factors outside of the Company’s control that impact consumer confidence and spending.  Forward-looking statements regarding the number and timing of the Company’s planned new restaurant openings are subject to additional risks and uncertainties due to the conditions discussed above and other factors outside of the Company’s control, including factors that are under the control of government agencies, landlords and others.  The Company is also subject to risks and

 


 

uncertainties related to the economic condition of suppliers, vendors and other third parties providing goods or services to the Company.  Forward-looking statements speak only as of the dates on which they were made.  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 filings with the Securities and Exchange Commission, which are available at sec.gov.

 


 

The Cheesecake Factory Incorporated and Subsidiaries

Consolidated Financial Statements

(unaudited; in thousands, except per share and statistical data)

 

 

 

13 Weeks Ended

 

13 Weeks Ended

 

 

 

March 31, 2009

 

April 1, 2008

 

 

 

Amount

 

Percent of
Revenues

 

Amount

 

Percent of
Revenues

 

Consolidated Statements of Operations

 

 

 

 

 

 

 

 

 

Revenues

 

$

392,794

 

100.0

%

$

393,803

 

100.0

%

Costs and expenses:

 

 

 

 

 

 

 

 

 

Cost of sales

 

98,086

 

25.0

%

100,739

 

25.6

%

Labor expenses

 

133,240

 

33.9

%

132,523

 

33.7

%

Other operating costs and expenses

 

101,754

 

25.9

%

95,898

 

24.3

%

General and administrative expenses

 

21,410

 

5.5

%

20,343

 

5.2

%

Depreciation and amortization expenses

 

18,603

 

4.7

%

18,093

 

4.6

%

Preopening costs

 

1,720

 

0.4

%

2,486

 

0.6

%

Total costs and expenses

 

374,813

 

95.4

%

370,082

 

94.0

%

Income from operations

 

17,981

 

4.6

%

23,721

 

6.0

%

Interest expense

 

(5,030

)

(1.3

)%

(3,539

)

(0.9

)%

Interest income

 

208

 

0.0

%

522

 

0.1

%

Other expense

 

(175

)

0.0

%

(175

)

0.0

%

Income before income taxes

 

12,984

 

3.3

%

20,529

 

5.2

%

Income tax provision

 

2,965

 

0.7

%

6,200

 

1.6

%

Net income

 

$

10,019

 

2.6

%

$

14,329

 

3.6

%

 

 

 

 

 

 

 

 

 

 

Basic net income per share

 

$

0.17

 

 

 

$

0.21

 

 

 

Basic weighted average shares outstanding

 

59,315

 

 

 

68,110

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted net income per share

 

$

0.17

 

 

 

$

0.21

 

 

 

Diluted weighted average shares outstanding

 

59,520

 

 

 

68,629

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Segment Information

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

Restaurants

 

$

379,659

 

 

 

$

378,684

 

 

 

Bakery

 

24,934

 

 

 

27,083

 

 

 

Intercompany bakery sales

 

(11,799

)

 

 

(11,964

)

 

 

 

 

$

392,794

 

 

 

$

393,803

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations:

 

 

 

 

 

 

 

 

 

Restaurants

 

$

37,060

 

 

 

$

42,065

 

 

 

Bakery

 

2,304

 

 

 

3,083

 

 

 

Corporate

 

(21,383

)

 

 

(21,427

)

 

 

 

 

$

17,981

 

 

 

$

23,721

 

 

 

 

 

 

March 31, 2009

 

December 30, 2008

 

Selected Consolidated Balance Sheet Information

 

 

 

 

 

Cash and cash equivalents

 

$

88,650

 

$

80,365

 

Investments and marketable securities

 

—

 

996

 

Total assets

 

1,117,463

 

1,142,630

 

Long-term debt

 

250,000

 

275,000

 

Total liabilities

 

651,981

 

690,064

 

Stockholders’ equity

 

465,482

 

452,566

 

 

 

 

13 Weeks Ended

 

13 Weeks Ended

 

 

 

March 31, 2009

 

April 1, 2008

 

Supplemental Information

 

 

 

 

 

Comparable restaurant sales percentage change

 

-3.4

%

-1.8

%

Restaurants opened during period

 

1

 

0

 

Restaurants open at period-end

 

160

 

153

 

Restaurant operating weeks

 

2,073

 

1,988

 

 

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