UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
February 16, 2013
THE CHEESECAKE FACTORY INCORPORATED
(Exact name of registrant as specified in its charter)
Delaware |
|
0-20574 |
|
51-0340466 |
(State or other jurisdiction |
|
(Commission File Number) |
|
(IRS Employer Identification |
26901 Malibu Hills Road
Calabasas Hills, California 91301
(Address of principal executive offices) (Zip Code)
Registrants telephone number, including area code:
(818) 871-3000
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14.d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
In a press release dated February 20, 2013, The Cheesecake Factory Incorporated (the Company) announced financial results for the Companys fourth quarter of fiscal 2012, which ended on January 1, 2013. The full text of the press release is furnished herewith as Exhibit 99.1 to this Report.
The information furnished in Item 2.02 of this Current Report on Form 8-K (Report), including the exhibit incorporated by reference, will not be treated as filed for the purposes of Section 18 of the Securities Exchange Act of 1934 (the Exchange Act) or otherwise subject to the liabilities of that section. This information will not be deemed incorporated by reference into a filing under the Securities Act of 1933, or into another filing under the Exchange Act, unless that filing expressly refers to specific information in this Report.
ITEM 5.02 DEPARTURE OF DIRECTORS OR CERTAIN OFFICERS; ELECTION OF DIRECTORS; APPOINTMENT OF CERTAIN OFFICERS; COMPENSATORY ARRANGEMENTS OF CERTAIN OFFICERS
Michael E. Janninis employment with the Company terminated effective February 16, 2013. Mr. Jannini served as the Companys President since February 2010.
The Companys Board of Directors appointed David M. Gordon, 48, as President of the Company effective February 18, 2013. The Company announced Mr. Gordons appointment in a press release dated February 19, 2013. The full text of the press release is attached as Exhibit 99.2 to this report and is hereby incorporated by reference. Mr. Gordon has been employed by the Company in various capacities since 1993, most recently as Senior Vice President of Operations from 2008 through 2010 and Chief Operating Officer of The Cheesecake Factory and Grand Lux Cafe restaurants from 2010 until his appointment as President.
The Company has not entered into an Employment Agreement with Mr. Gordon. Mr. Gordons current base salary is $425,000 per year. His target bonus percentage under the Companys Performance Incentive Plan for fiscal 2012 is 65% of his base salary, and the maximum amount Mr. Gordon could receive under the terms of the 2012 Performance Incentive Plan is 113.8% of his base salary. Mr. Gordon is eligible to participate equitably with the Companys other executive officers in any of the Companys plans relating to incentive compensation, pension, profit sharing, disability income insurance, life insurance, education, medical coverage, automobile allowance or leasing, or other retirement or employee benefits.
ITEM 8.01 OTHER EVENTS
Dividend Declaration. On February 19, 2013, the Board of Directors of the Company declared a cash dividend to its stockholders. A dividend of $0.12 per share will be paid on March 19, 2013 to the stockholders of record on March 6, 2013 of each share of the Companys common stock. Future dividends will be subject to Board approval. On February 20, 2013, the Company included in its press release, attached hereto as Exhibit 99.1 and described in Item 2.02 above, an announcement of the declaration of the dividend. The full text of the press release is furnished as Exhibit 99.1 to this Report and is hereby incorporated by reference.
International Licensing Agreement. In a press release dated February 20, 2013, the Company announced that it has entered into an exclusive licensing agreement with Alsea, S.A.B. de C.V., to build and operate a minimum of twelve The Cheesecake Factory® restaurants over an eight-year period in Mexico and Chile, with the potential to expand the agreement to Argentina, Brazil, Colombia and Peru. The transaction also includes an agreement to supply bakery products branded under The Cheesecake Factory trademark to such restaurants. The full text of the press release is furnished as Exhibit 99.3 to this report.
The information furnished in Item 7.01 of this Report, including the exhibits incorporated by reference, will not be treated as filed for the purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section. This information will not be deemed incorporated by reference into a filing under
the Securities Act of 1933, or into another filing under the Exchange Act, unless that filing expressly refers to specific information in this Report. The furnishing of the information in Item 7.01 is not intended to, and does not, constitute a representation that such furnishing is required by Regulation FD or that the information this Report contains is material investor information that is not otherwise publicly available.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
(d) Exhibits
99.1 |
|
Press release dated February 20, 2013 entitled, The Cheesecake Factory Reports Results for Fourth Quarter of Fiscal 2012 |
99.2 |
|
Press release dated February 19, 2013 entitled, The Cheesecake Factory Names David M. Gordon as President |
99.3 |
|
Press release dated February 20, 2013 entitled, The Cheesecake Factory Continues International Expansion |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: February 20, 2013 |
THE CHEESECAKE FACTORY INCORPORATED | |
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| |
|
| |
|
By: |
/s/ W. Douglas Benn |
|
|
W. Douglas Benn |
|
|
Executive Vice President and Chief Financial |
|
|
Officer |
EXHIBIT INDEX
Exhibit |
|
Description |
99.1 |
|
Press release dated February 20, 2013 entitled, The Cheesecake Factory Reports Results for Fourth Quarter of Fiscal 2012 |
99.2 |
|
Press release dated February 19, 2013 entitled, The Cheesecake Factory Names David M. Gordon as President |
99.3 |
|
Press release dated February 20, 2013 entitled, The Cheesecake Factory Continues International Expansion |
Exhibit 99.1
PRESS RELEASE
FOR IMMEDIATE RELEASE |
|
Contact: Jill Peters |
|
|
(818) 871-3000 |
|
|
investorrelations@thecheesecakefactory.com |
THE CHEESECAKE FACTORY REPORTS RESULTS FOR
FOURTH QUARTER OF FISCAL 2012
Calabasas Hills, CA February 20, 2013 The Cheesecake Factory Incorporated (NASDAQ: CAKE) today reported financial results for the fourth quarter of fiscal 2012, which ended on January 1, 2013.
Total revenues were $464.7 million in the fourth quarter of fiscal 2012 as compared to $477.7 million in the prior year fourth quarter (13 weeks vs. 14 weeks). Net income and diluted net income per share were $22.1 million and $0.40, respectively, in the fourth quarter of fiscal 2012.
The Company recorded a pre-tax charge of $9.5 million related to discontinuing operations of three Grand Lux Cafe restaurants and impairing one The Cheesecake Factory restaurant during the fourth quarter of fiscal 2012. These items decreased diluted net income per share by approximately $0.11. Excluding these items, net income was $27.9 million and diluted net income per share was $0.51.
Operating Results
Comparable restaurant sales at The Cheesecake Factory and Grand Lux Cafe increased 0.9% in the fourth quarter of fiscal 2012, but were negatively impacted by approximately 0.6% due to Hurricane Sandy. Excluding this weather impact, comparable restaurant sales increased 1.5%.
By concept, comparable restaurant sales grew 1.3% at The Cheesecake Factory and declined 3.2% at Grand Lux Cafe.
The fourth quarter marks the twelfth consecutive quarter in which we delivered positive comparable restaurant sales. Our sales were competitively quite strong and within our expected range, absent the hurricane. Our operators did a great job of maintaining high guest satisfaction scores while managing their cost structures to deliver higher year-over-year restaurant-level margins. Our fourth quarter results are the culmination of strong performance this year, including a solid increase in comparable restaurant sales, a significant step forward in returning to peak operating margins and execution of our longer-term earnings per share growth goal, said David Overton, Chairman and Chief Executive Officer.
26901 Malibu Hills Road, Calabasas Hills, CA 91301 · Telephone (818) 871-3000 · Fax (818) 871-3100
We expect 2013 to be another year of growth, through the expansion of our restaurants, both domestically and internationally. Strategically, we will continue to focus on food quality and service as key differentiators and business drivers, contributing to our expectation for higher comparable restaurant sales, higher earnings per share and increasing shareholder value, concluded Overton.
Development
The Company opened four new restaurants in the fourth quarter of fiscal 2012, executing on its objective to open eight new restaurants for the full year.
Internationally, two new The Cheesecake Factory restaurants opened in the Middle East in the fourth quarter of fiscal 2012, for a total of three new international locations opened during the year under a licensing agreement.
In fiscal 2013, the Company continues to expect it will open as many as eight to ten new restaurants. Internationally, the Company expects as many as three new restaurants to open under a licensing agreement.
Capital Allocation
The Companys Board of Directors declared a quarterly cash dividend of $0.12 per share on the Companys common stock. The dividend is payable on March 19, 2013 to shareholders of record at the close of business on March 6, 2013.
During the fourth quarter of fiscal 2012, the Company repurchased 787,995 shares of its common stock at a cost of $26.4 million. For the full year of fiscal 2012, the Company repurchased 3,218,094 shares at a cost of $101.4 million. Including dividends, the Company returned $114.3 million in cash to shareholders in fiscal 2012, exceeding its plan for the year.
The Company expects that it will return the majority of its free cash flow to shareholders in fiscal 2013 in the form of dividends and share repurchases.
Financial Reporting Dates for Fiscal 2013
The Company plans to announce quarterly financial results and hold conference calls to discuss its results for the first three quarters of fiscal 2013 as outlined below. The earnings press releases will be issued at approximately 1:15 p.m. Pacific Time and the conference calls will follow at 2:00 p.m. Pacific Time on the same day. Dates and times could be subject to change.
Quarter Ending |
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Earnings Release and Conference Call Dates |
April 2, 2013 |
|
April 24, 2013 |
July 2, 2013 |
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July 24, 2013 |
October 1, 2013 |
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October 23, 2013 |
Conference Call and Webcast
A conference call to review the Companys results for the fourth quarter of fiscal 2012 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 March 20, 2013. To listen to the conference call, please go to the Companys website at www.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 177 full-service, casual dining restaurants throughout the U.S., including 162 restaurants under The Cheesecake Factory® mark; 14 restaurants under the Grand Lux Cafe® mark; and one restaurant under the RockSugar Pan Asian Kitchen® mark. Internationally, three The Cheesecake Factory® restaurants operate under a licensing agreement. The Company also operates two bakery production facilities in Calabasas Hills, CA and Rocky Mount, NC that produce over 70 varieties of quality cheesecakes and other baked products. To learn more about the Company, visit www.thecheesecakefactory.com.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These 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, including uncertainties related to: future charges associated with discontinuing operations at three Grand Lux Cafe restaurants; the Companys ability to deliver comparable sales increases; the Companys ability to outperform the casual dining industry; the Companys ability to maintain or increase its food quality and overall guest satisfaction scores; the Companys ability to manage its cost structure; the Companys ability to expand domestically and internationally; the Companys ability to deliver higher comparable sales, higher earnings per share and increase shareholder value in the future; factors outside of the Companys control that impact consumer confidence and spending; current and future macro national and regional economic and credit market conditions; changes in national and regional unemployment rates; the economic health of the Companys landlords and other tenants in retail centers in which its restaurants are located; the economic health of suppliers, vendors and other third parties providing goods or services to the Company; adverse weather conditions in regions in which the Companys restaurants are located; factors that are under the control of government agencies, landlords and other third parties; and other risks and uncertainties detailed from time to time in the Companys filings with the Securities and Exchange Commission (SEC), as set forth below. Investors are cautioned that forward-looking statements are not guarantees of future performance and that undue reliance should not be placed on such statements. Forward-looking statements speak only as of the dates on which they are made and 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 Companys latest Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K as filed with the SEC, which are available at www.sec.gov.
The Cheesecake Factory Incorporated and Subsidiaries
Consolidated Financial Statements
(unaudited; in thousands, except per share and statistical data)
|
|
13 Weeks Ended |
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14 Weeks Ended |
|
52 Weeks Ended |
|
53 Weeks Ended |
| ||||||||||||
|
|
January 1, 2013 |
|
January 3, 2012 |
|
January 1, 2013 |
|
January 3, 2012 |
| ||||||||||||
Consolidated Statements of Operations |
|
Amounts |
|
Percent of |
|
Amounts |
|
Percent of |
|
Amounts |
|
Percent of |
|
Amounts |
|
Percent of |
| ||||
Revenues |
|
$ |
464,695 |
|
100.0 |
% |
$ |
477,696 |
|
100.0 |
% |
$ |
1,809,017 |
|
100.0 |
% |
$ |
1,757,624 |
|
100.0 |
% |
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Cost of sales |
|
119,916 |
|
25.8 |
% |
124,606 |
|
26.1 |
% |
450,153 |
|
24.9 |
% |
448,468 |
|
25.5 |
% | ||||
Labor expenses |
|
145,496 |
|
31.3 |
% |
151,306 |
|
31.7 |
% |
580,192 |
|
32.1 |
% |
567,358 |
|
32.3 |
% | ||||
Other operating costs and expenses |
|
111,101 |
|
23.9 |
% |
115,266 |
|
24.1 |
% |
439,559 |
|
24.3 |
% |
428,442 |
|
24.3 |
% | ||||
General and administrative expenses |
|
26,763 |
|
5.8 |
% |
24,348 |
|
5.1 |
% |
104,156 |
|
5.7 |
% |
96,263 |
|
5.5 |
% | ||||
Depreciation and amortization expenses |
|
18,893 |
|
4.1 |
% |
19,434 |
|
4.1 |
% |
74,433 |
|
4.1 |
% |
71,958 |
|
4.1 |
% | ||||
Impairment of assets and lease terminations (1) |
|
9,536 |
|
2.0 |
% |
1,547 |
|
0.3 |
% |
9,536 |
|
0.5 |
% |
1,547 |
|
0.1 |
% | ||||
Preopening costs |
|
4,804 |
|
1.0 |
% |
3,006 |
|
0.6 |
% |
12,289 |
|
0.7 |
% |
10,138 |
|
0.6 |
% | ||||
Total costs and expenses |
|
436,509 |
|
93.9 |
% |
439,513 |
|
92.0 |
% |
1,670,318 |
|
92.3 |
% |
1,624,174 |
|
92.4 |
% | ||||
Income from operations |
|
28,186 |
|
6.1 |
% |
38,183 |
|
8.0 |
% |
138,699 |
|
7.7 |
% |
133,450 |
|
7.6 |
% | ||||
Interest and other (expense)/income, net |
|
(1,029 |
) |
(0.3 |
)% |
(610 |
) |
(0.1 |
)% |
(4,725 |
) |
(0.3 |
)% |
(4,307 |
) |
(0.3 |
)% | ||||
Income before income taxes |
|
27,157 |
|
5.8 |
% |
37,573 |
|
7.9 |
% |
133,974 |
|
7.4 |
% |
129,143 |
|
7.3 |
% | ||||
Income tax provision |
|
5,018 |
|
1.1 |
% |
7,631 |
|
1.6 |
% |
35,551 |
|
2.0 |
% |
33,423 |
|
1.9 |
% | ||||
Net income |
|
$ |
22,139 |
|
4.8 |
% |
$ |
29,942 |
|
6.3 |
% |
$ |
98,423 |
|
5.4 |
% |
$ |
95,720 |
|
5.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Basic net income per share |
|
$ |
0.42 |
|
|
|
$ |
0.55 |
|
|
|
$ |
1.85 |
|
|
|
$ |
1.70 |
|
|
|
Basic weighted average shares outstanding |
|
52,948 |
|
|
|
54,267 |
|
|
|
53,185 |
|
|
|
56,378 |
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Diluted net income per share |
|
$ |
0.40 |
|
|
|
$ |
0.54 |
|
|
|
$ |
1.78 |
|
|
|
$ |
1.64 |
|
|
|
Diluted weighted average shares outstanding |
|
55,079 |
|
|
|
55,894 |
|
|
|
55,211 |
|
|
|
58,190 |
|
|
|
Selected Segment Information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Restaurants |
|
$ |
437,998 |
|
|
|
$ |
448,270 |
|
|
|
$ |
1,743,806 |
|
|
|
$ |
1,685,037 |
|
|
|
Bakery |
|
41,411 |
|
|
|
44,301 |
|
|
|
129,122 |
|
|
|
131,264 |
|
|
| ||||
Intercompany bakery sales |
|
(14,714 |
) |
|
|
(14,875 |
) |
|
|
(63,911 |
) |
|
|
(58,677 |
) |
|
| ||||
|
|
$ |
464,695 |
|
|
|
$ |
477,696 |
|
|
|
$ |
1,809,017 |
|
|
|
$ |
1,757,624 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Income from operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Restaurants (1) |
|
$ |
48,088 |
|
|
|
$ |
56,566 |
|
|
|
$ |
225,993 |
|
|
|
$ |
215,803 |
|
|
|
Bakery |
|
4,797 |
|
|
|
3,496 |
|
|
|
10,784 |
|
|
|
8,670 |
|
|
| ||||
Corporate |
|
(24,699 |
) |
|
|
(21,879 |
) |
|
|
(98,078 |
) |
|
|
(91,023 |
) |
|
| ||||
|
|
$ |
28,186 |
|
|
|
$ |
38,183 |
|
|
|
$ |
138,699 |
|
|
|
$ |
133,450 |
|
|
|
Selected Consolidated Balance Sheet Information |
|
January 1, 2013 |
|
January 3, 2012 |
|
|
|
|
| ||
Cash and cash equivalents |
|
$ |
83,569 |
|
$ |
48,211 |
|
|
|
|
|
Total assets |
|
1,092,167 |
|
1,022,570 |
|
|
|
|
| ||
Total liabilities |
|
512,441 |
|
479,817 |
|
|
|
|
| ||
Stockholders equity |
|
579,726 |
|
542,753 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
|
|
13 Weeks Ended |
|
14 Weeks Ended |
|
52 Weeks Ended |
|
53 Weeks Ended |
| ||
Supplemental Information |
|
January 1, 2013 |
|
January 3, 2012 |
|
January 1, 2013 |
|
January 3, 2012 |
| ||
Comparable restaurant sales percentage change |
|
0.9 |
% |
2.7 |
% |
1.9 |
% |
1.8 |
% | ||
Restaurants opened during period |
|
4 |
|
2 |
|
8 |
|
7 |
| ||
Restaurants open at period-end |
|
177 |
|
170 |
|
177 |
|
170 |
| ||
Restaurant operating weeks |
|
2,271 |
|
2,367 |
|
8,957 |
|
8,777 |
| ||
(1) Includes impairment of one The Cheesecake Factory restaurant in the fourth quarter of fiscal 2012 and two The Cheesecake Factory restaurants and one Grand Lux Cafe in the fourth quarter of fiscal 2011. The amounts associated with these items were $5,469 and $1,547, respectively. Also includes partial reimbursement to landlords of tenant improvement allowances and broker fees for three Grand Lux Cafe locations where the Company is discontinuing operations in March 2013. The amount associated with this item was $4,067 and was recorded in the fourth quarter of fiscal 2012.
Reconciliation of Non-GAAP Results to GAAP Results
In addition to the results provided in accordance with Generally Accepted Accounting Principles (GAAP) in this press release, the Company is providing non-GAAP measurements which present the fourth quarter and full year fiscal 2012 and fiscal 2011 net income and diluted net income per share excluding the impact from certain items. Additional detail regarding the fourth quarter fiscal 2012 items can be found on the first page of this press release and in the footnote to the Consolidated Financial Statements on the previous page.
The non-GAAP measurements are intended to supplement the presentation of the Companys financial results in accordance with GAAP. The Company believes that the presentation of these items provides additional information to facilitate the comparison of past and present financial results.
|
|
13 Weeks Ended |
|
14 Weeks Ended |
|
52 Weeks Ended |
|
53 Weeks Ended |
| ||||
|
|
January 1, 2013 |
|
January 3, 2012 |
|
January 1, 2013 |
|
January 3, 2012 |
| ||||
|
|
(unaudited; in thousands, except per share data) |
| ||||||||||
Net income (GAAP) |
|
$ |
22,139 |
|
$ |
29,942 |
|
$ |
98,423 |
|
$ |
95,720 |
|
After-tax impact from: |
|
|
|
|
|
|
|
|
| ||||
- Impairment of assets and lease terminations (1) |
|
5,722 |
|
928 |
|
5,722 |
|
928 |
| ||||
- Proceeds from variable life insurance contract (2) |
|
|
|
|
|
(419 |
) |
|
| ||||
- Partial IRS settlement (3) |
|
|
|
(1,506 |
) |
|
|
(1,506 |
) | ||||
Net income (non-GAAP) |
|
$ |
27,861 |
|
$ |
29,364 |
|
$ |
103,726 |
|
$ |
95,142 |
|
|
|
|
|
|
|
|
|
|
| ||||
Diluted net income per share (GAAP) |
|
$ |
0.40 |
|
$ |
0.54 |
|
$ |
1.78 |
|
$ |
1.64 |
|
After-tax impact from: |
|
|
|
|
|
|
|
|
| ||||
- Impairment of assets and lease terminations (1) |
|
0.11 |
|
0.02 |
|
0.11 |
|
0.02 |
| ||||
- Proceeds from variable life insurance contract (2) |
|
|
|
|
|
(0.01 |
) |
|
| ||||
- Partial IRS settlement (3) |
|
|
|
(0.03 |
) |
|
|
(0.03 |
) | ||||
Diluted net income per share (non-GAAP) (4) |
|
$ |
0.51 |
|
$ |
0.53 |
|
$ |
1.88 |
|
$ |
1.64 |
|
(1) The pre-tax amounts associated with this item were $9,536 in the fourth quarter of fiscal 2012 and $1,547 in the fourth quarter of fiscal 2011, and were recorded in impairment of assets and lease terminations.
(2) This item is non-taxable and is recorded in interest and other (expense)/income, net.
(3) The pre-tax amounts associated with this item were $719 and $1,075 and were recorded in interest and other (expense)/income, net and income tax provision, respectively.
(4) Diluted net income per share may not add due to rounding.
###
Exhibit 99.2
PRESS RELEASE
FOR IMMEDIATE RELEASE |
Contact: Jill Peters |
|
(818) 871-8300 |
|
investorrelations@thecheesecakefactory.com |
THE CHEESECAKE FACTORY NAMES DAVID M. GORDON AS PRESIDENT
Calabasas Hills, CA February 19, 2013 The Cheesecake Factory Incorporated (NASDAQ: CAKE) today announced it named David M. Gordon as President of The Cheesecake Factory Incorporated, effective immediately.
Mr. Gordon most recently served as Chief Operating Officer of The Cheesecake Factory and Grand Lux Cafe restaurants. His tenure with the Company spans 20 years, during which he was Regional Vice President, West Coast; Area Director of Operations; and General Manager. He joined the Company in 1993 as a Manager.
David is well-deserving of this promotion, as he has been instrumental in driving our restaurant operations to be more efficient and effective, while at the same time increasing our standards for quality and service. He also plays an important role in our international expansion with his operational expertise and leadership abilities. He is a proven leader whose integrity and commitment to excellence have earned him the trust and respect of everyone that he works with, said David Overton, Chairman and Chief Executive Officer.
In the past four years under Davids leadership, restaurant-level margins grew significantly, as did our guest satisfaction scores, demonstrating his ability to balance our goals of delivering an exceptional experience to our guests and running a profitable business. I am confident in Davids ability to help lead our Company forward, continued Overton.
Mr. Gordon replaces Michael Jannini, who left the Company to pursue other interests.
The Company also announced that it named Spero Alex as Senior Vice President of Operations of The Cheesecake Factory restaurants, effective immediately. Mr. Alex, a 24-year veteran of the Company, most recently served as Regional Vice President, East Coast. Previously, he was Area Director of Operations and General Manager. He joined the Company in 1989 as a Manager.
Spero has very broad operational experience and has demonstrated success in every role within our operations structure. He is respected as a leader, and I know that Spero will continue to contribute meaningfully in his new role, remarked Overton.
The Cheesecake Factory Incorporated
26901 Malibu Hills Road, Calabasas Hills, CA 91301 · Telephone (818) 871-3000 · Fax (818) 871-3100
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 177 full-service, casual dining restaurants throughout the U.S., including 162 restaurants under The Cheesecake Factory® mark; 14 restaurants under the Grand Lux Cafe® mark; and one restaurant under the RockSugar Pan Asian Kitchen® mark. Internationally, three The Cheesecake Factory® restaurants operate under a licensing agreement. The Company also operates two bakery production facilities in Calabasas Hills, CA and Rocky Mount, NC that produce over 70 varieties of quality cheesecakes and other baked products. To learn more about the Company, visit www.thecheesecakefactory.com.
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Exhibit 99.3
PRESS RELEASE
FOR IMMEDIATE RELEASE |
Contact: Jill Peters |
|
(818) 871-8300 |
|
investorrelations@thecheesecakefactory.com |
THE CHEESECAKE FACTORY CONTINUES
INTERNATIONAL EXPANSION
Calabasas Hills, CA February 20, 2013 The Cheesecake Factory Incorporated (NASDAQ: CAKE) today announced it has entered into an exclusive licensing agreement with Alsea, S.A.B. de C.V., a leading restaurant operator in Latin America, to build and operate The Cheesecake Factory® restaurants. The agreement provides for the development of a minimum of 12 restaurants over an eight-year period throughout Mexico and Chile with the potential to expand the agreement to four other countriesArgentina, Brazil, Colombia and Peru. The first restaurant is expected to open in Mexico City by early fiscal 2014.
Following the extremely successful introduction in 2012 of The Cheesecake Factory® restaurants in the Middle East, we are pleased to announce the continuation of our global growth strategy with another proven operator. International development is a significant growth vehicle for us, with excellent opportunities in Mexico, Chile and other Latin American countries. Our agreement with Alsea further strengthens our ability to deliver on our earnings per share growth objectives and enhance shareholder value, said David Overton, Chairman and CEO.
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 177 full-service, casual dining restaurants throughout the U.S., including 162 restaurants under The Cheesecake Factory® mark; 14 restaurants under the Grand Lux Cafe® mark; and one restaurant under the RockSugar Pan Asian Kitchen® mark. Internationally, three The Cheesecake Factory® restaurants operate under a licensing agreement. The Company also operates two bakery production facilities in Calabasas Hills, CA and Rocky Mount, NC that produce over 70 varieties of quality cheesecakes and other baked products. To learn more about the Company, visit www.thecheesecakefactory.com.
About Alsea, S.A.B. de C.V.
Alsea is a leading restaurant operator in Latin America of global leading brands in the quick service, coffee shop and casual dining segments. It has a diversified portfolio, with brands such as Dominos Pizza, Starbucks, Burger King, Chilis, California Pizza Kitchen, P.F. Changs, Pei-Wei and Italiannis. At the end of 2012, Alsea operated 1,421 units in Mexico, Argentina, Chile and Colombia with more than 27,600 employees. Alseas shares are traded on the Mexican Stock Exchange under the ticker symbol ALSEA*. For more information, please visit www.alsea.com.mx
The Cheesecake Factory Incorporated
26901 Malibu Hills Road, Calabasas Hills, CA 91301 · Telephone (818) 871-3000 · Fax (818) 871-3100
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These 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, in particular the Companys ability to expand internationally, including consumer acceptance of its concept, the ability of the Companys licensee to operate the Companys concept, and the Companys ability to deliver on its targeted earnings per share growth objective and increase shareholder value. In addition, numerous risks outside the Companys control may cause actual results to be materially different from those stated or implied by forward-looking statements, including factors that impact consumer confidence and spending; current and future macro national and regional economic and credit market conditions; changes in national and regional unemployment rates; the economic health of the Companys landlords and other tenants in retail centers in which its restaurants are located; the economic health of suppliers, vendors and other third parties providing goods or services to the Company; adverse weather conditions in regions in which the Companys restaurants are located; factors that are under the control of government agencies, landlords and other third parties; and other risks and uncertainties detailed from time to time in the Companys filings with the Securities and Exchange Commission (SEC), as set forth below. Investors are cautioned that forward-looking statements are not guarantees of future performance and that undue reliance should not be placed on such statements. Forward-looking statements speak only as of the dates on which they are made and 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 Companys latest Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K as filed with the SEC, which are available at www.sec.gov.
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