EX-99.1 2 tc71592ex991.htm

EXHIBIT 99.1

Message

PRESS RELEASE

THE CHEESECAKE FACTORY REPORTS RECORD FINANCIAL RESULTS
FOR THE SECOND QUARTER ENDED JUNE 28, 2005

FOR IMMEDIATE RELEASE

CONTACT: JANE VALLAIRE

 

(818) 871-3000

          Calabasas Hills, CA    July 19, 2005 – The Cheesecake Factory Incorporated (Nasdaq: CAKE) today reported record financial results for the second quarter of fiscal 2005 that ended on June 28, 2005.  Highlights for the second quarter, compared to the same quarter last year, are as follows:

 

•

Total revenues up 23% to $288.3 million

 

•

Operating income up 31% to $34.6 million

 

•

Net income up 32% to $23.3 million

 

•

Diluted net income per share up 32% to $0.29

          “We are very pleased with our record financial results for the second quarter,” said David Overton, Chairman and CEO.  “Comparable sales at The Cheesecake Factory restaurants increased 1.7% in spite of the shift of the Easter holiday from the second quarter of fiscal 2004 to the first quarter of fiscal 2005.  We estimate comparable sales would have increased approximately 2.2% without the impact of the Easter holiday shift, or approximately equal to our effective menu price increase.  We also achieved record net income and earnings per share by combining our strong sales with the improved commodity cost environment relative to the prior year.”

          “We continue to be very pleased with sales at our Grand Lux Cafe locations with a comparable sales increase of approximately 3.6%,” added Overton. “In addition, the strong sales at our two newest locations in Dallas and Houston and the improving margins at all Grand Lux Cafe locations gives us considerable confidence as we continue to grow this concept.”

          “We are on track with our stated goal of opening as many as 18 restaurants in the current year, including two Grand Lux Cafes,” stated Overton.  Seven new Cheesecake Factory restaurants have opened so far this fiscal year, including one in the second quarter in Burlington, Massachusetts and the most recent opening in Westlake, Ohio.  Two additional restaurant openings are currently planned for the third quarter and nine openings, including two Grand Lux Cafes, are currently scheduled for the fourth quarter.  “We are very excited about our planned openings for the second half of the year which include several new markets for us, such as Louisville, Kentucky and Portland, Oregon, as well as Grand Lux Cafes in Long Island, New York and Sunrise, Florida,” commented Overton.  “While our scheduled restaurant openings are weighted toward the back-half of the year due to the nature of the locations we choose, we remain confident in our ability to achieve our full-year restaurant growth plan for 2005 and we are operationally ready to successfully execute those openings.”

 

 

 

 

 

The Cheesecake Factory Incorporated

26950 Agoura Road, Calabasas Hills, CA 91301 • Telephone (818) 871-3000 • Fax (818) 871-3100

          The Cheesecake Factory Incorporated operates 94 upscale, casual dining restaurants under The Cheesecake Factory® name that offer an extensive menu of more than 200 items with an average check of approximately $16.60.  The Company also operates a bakery production facility that produces over 50 varieties of quality cheesecakes and other baked products for the Company’s restaurants and for other leading foodservice operators, retailers and distributors.  Additionally, the Company operates five upscale casual dining restaurants under the Grand Lux Cafe® name; one self-service, limited menu “express” foodservice operation under The Cheesecake Factory Express® mark inside the DisneyQuest® family entertainment center in Orlando, Florida; and licenses two bakery cafe outlets to another foodservice operator under The Cheesecake Factory Bakery Cafe® name.

          This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  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 national and regional economic and public safety conditions that impact consumer confidence and spending, as well as weather and other factors outside of the Company’s control.  Forward-looking statements regarding bakery sales are subject to a number of risks and uncertainties, including (but not limited to) unforeseen changes in the purchasing plans of the Company’s large-account bakery customers and inherent difficulties in predicting the timing of product orders and shipments.  Forward-looking statements regarding the number and timing of the Company’s planned new restaurant openings, and the amount and timing of their associated preopening costs, are subject to risks and uncertainties due to factors outside of the Company’s control, including factors that are under the control of government agencies, landlords and others.  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 the securities laws.  Investors are referred to the full discussion of risks and uncertainties associated with forward-looking statements contained in the Company’s filings with the Securities and Exchange Commission.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Cheesecake Factory Incorporated

26950 Agoura Road, Calabasas Hills, CA 91301 • Telephone (818) 871-3000 • Fax (818) 871-3100

The Cheesecake Factory Incorporated and Subsidiaries
Consolidated Financial Statements
(unaudited; in thousands, except per share and statistical data)

Consolidated Statements of Operations

 

13 Weeks Ended
June 28, 2005

 

13 Weeks Ended
June 29, 2004

 

26 Weeks Ended
June 28, 2005

 

26 Weeks Ended
June 29, 2004

 

 

 

 

 

 

 

 

Amounts

 

Percents

 

Amounts

 

Percents

 

Amounts

 

Percents

 

Amounts

 

Percents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(restated)

 

 

 

(restated)

 

Revenues:

 

$

288,336

 

 

100.0

%

$

234,920

 

 

100.0

%

$

556,560

 

 

100.0

%

$

455,454

 

 

100.0

%

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

 

74,357

 

 

25.8

%

 

63,682

 

 

27.1

%

 

143,275

 

 

25.7

%

 

120,748

 

 

26.5

%

Labor expenses

 

 

89,775

 

 

31.1

%

 

71,659

 

 

30.5

%

 

172,794

 

 

31.1

%

 

140,697

 

 

30.9

%

Other operating expenses

 

 

64,459

 

 

22.4

%

 

52,771

 

 

22.4

%

 

126,406

 

 

22.7

%

 

102,576

 

 

22.5

%

General and administrative expenses

 

 

12,350

 

 

4.3

%

 

9,874

 

 

4.2

%

 

23,959

 

 

4.3

%

 

19,644

 

 

4.3

%

Depreciation and amortization expenses

 

 

10,643

 

 

3.7

%

 

8,398

 

 

3.6

%

 

20,836

 

 

3.7

%

 

16,724

 

 

3.7

%

Preopening costs

 

 

2,127

 

 

0.7

%

 

2,081

 

 

0.9

%

 

6,520

 

 

1.2

%

 

4,142

 

 

0.9

%

 

 

 

 

 

 

 

 

 

 

Total costs and expenses

 

 

253,711

 

 

88.0

%

 

208,465

 

 

88.7

%

 

493,790

 

 

88.7

%

 

404,531

 

 

88.8

%

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

34,625

 

 

12.0

%

 

26,455

 

 

11.3

%

 

62,770

 

 

11.3

%

 

50,923

 

 

11.2

%

Interest income, net

 

 

928

 

 

0.3

%

 

571

 

 

0.2

%

 

1,724

 

 

0.3

%

 

1,089

 

 

0.2

%

Other income, net

 

 

149

 

 

0.1

%

 

124

 

 

0.1

%

 

286

 

 

0.1

%

 

705

 

 

0.2

%

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

35,702

 

 

12.4

%

 

27,150

 

 

11.6

%

 

64,780

 

 

11.7

%

 

52,717

 

 

11.6

%

Income tax provision

 

 

12,424

 

 

4.3

%

 

9,530

 

 

4.1

%

 

22,543

 

 

4.1

%

 

18,504

 

 

4.1

%

 

 

 

 

 

 

 

 

 

 

Net income

 

$

23,278

 

 

8.1

%

$

17,620

 

 

7.5

%

$

42,237

 

 

7.6

%

$

34,213

 

 

7.5

%

 

 

 

 

 

 

 

 

 

 

Basic net income per share

 

$

0.30

 

 

 

 

$

0.23

 

 

 

 

$

0.54

 

 

 

 

$

0.44

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average shares outstanding

 

 

78,211

 

 

 

 

 

77,728

 

 

 

 

 

78,108

 

 

 

 

 

77,410

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted net income per share

 

$

0.29

 

 

 

 

$

0.22

 

 

 

 

$

0.53

 

 

 

 

$

0.43

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted weighted average shares outstanding

 

 

80,067

 

 

 

 

 

79,412

 

 

 

 

 

79,998

 

 

 

 

 

79,342

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Segment Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restaurants

 

$

276,017

 

 

 

 

$

223,062

 

 

 

 

$

530,807

 

 

 

 

$

434,278

 

 

 

 

Bakery

 

 

21,265

 

 

 

 

 

19,626

 

 

 

 

 

43,589

 

 

 

 

 

36,111

 

 

 

 

Intercompany bakery sales

 

 

(8,946

)

 

 

 

 

(7,768

)

 

 

 

 

(17,836

)

 

 

 

 

(14,935

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

288,336

 

 

 

 

$

234,920

 

 

 

 

$

556,560

 

 

 

 

$

455,454

 

 

 

 

 

 

 

    

 

 

    

 

 

    

 

 

    

 

Income from operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restaurants

 

$

44,097

 

 

 

 

$

33,764

 

 

 

 

$

79,958

 

 

 

 

$

65,616

 

 

 

 

Bakery

 

 

2,783

 

 

 

 

 

2,168

 

 

 

 

 

6,665

 

 

 

 

 

4,247

 

 

 

 

Corporate

 

 

(12,255

)

 

 

 

 

(9,477

)

 

 

 

 

(23,853

)

 

 

 

 

(18,940

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

34,625

 

 

 

 

$

26,455

 

 

 

 

$

62,770

 

 

 

 

$

50,923

 

 

 

 

 

 

 

    

 

 

    

 

 

    

 

 

    

 

Selected Consolidated Balance Sheet Information

 

June 28, 2005

 

December 28, 2004

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

24,368

 

$

14,041

 

 

 

 

 

 

 

Investments and marketable securities

 

 

150,079

 

 

137,471

 

 

 

 

 

 

 

Total assets

 

 

817,818

 

 

758,717

 

 

 

 

 

 

 

Total liabilities

 

 

225,026

 

 

215,865

 

 

 

 

 

 

Stockholders’ equity

 

 

592,792

 

 

542,852

 

 

 

 

 

 

 

Supplemental Information

 

13 Weeks Ended
June 28, 2005

 

13 Weeks Ended
June 29, 2004

 

26 Weeks Ended
June 28, 2005

 

26 Weeks Ended
June 29, 2004

 

 

 

 

 

 

Comparable restaurant sales% change (1)

 

 

1.8

%

 

4.5

%

 

2.6

%

 

5.2

%

Restaurants opened during period

 

 

1

 

 

2

 

 

6

 

 

4

 

Restaurants open at period-end

 

 

99

 

 

81

 

 

99

 

 

81

 

Restaurant operating weeks

 

 

1,279

 

 

1,029

 

 

2,497

 

 

2,045

 

(1)

Includes Cheesecake Factory restaurants and Grand Lux Cafes

The Cheesecake Factory Incorporated

26950 Agoura Road, Calabasas Hills, CA 91301 • Telephone (818) 871-3000 • Fax (818) 871-3100