Cheesecake Factory: Reports Results for Q1/2012

Calabas Hills / CA. (cf) The Cheesecake Factory reported financial results for the first quarter of fiscal 2012, which ended on April 3, 2012. Total revenues were 435,8 million USD in the first quarter of fiscal 2012 as compared to 418,8 million USD in the prior year first quarter. Net income and diluted net income per share were 20,7 million USD and 0,37 USD, respectively.

Operating Results

Comparable restaurant sales at The Cheesecake Factory and Grand Lux Cafe increased 2,4 percent in the first quarter of fiscal 2012. By concept, comparable restaurant sales grew 2,6 percent at The Cheesecake Factory and 0,3 percent at Grand Lux Cafe. «We had the best guest traffic levels in more than a year during the first quarter, as our culinary expertise and high service levels continue to attract guests», said David Overton, Chairman and CEO.

«Our strategy is experienced-based, not offer driven, with a focus on menu innovation and relevance to deliver full-margin sales. In the first quarter, we generated higher restaurant-level margins relative to last year, contributing to earnings per share that exceeded our targeted range. With our restaurant manager retention near record highs and a talented team of operators, we are confident in our ability to continue to deliver a best-in-class guest experience», concluded Overton.

Capital Allocation

During the first quarter of fiscal 2012, the Company repurchased 1’356’147 shares of its common stock at a cost of approximately 40,9 million USD. The Company continues to expect it will utilize approximately 100 million USD in free cash flow toward share repurchases in fiscal 2012.

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