The Cheesecake Factory: Reports First Quarter 2017 Results

Calabas Hills / CA. (cf) The Cheesecake Factory Inc. reported financial results for the first quarter of fiscal 2017, which ended on April 4, 2017. Total revenues were 563.4 million USD in the first quarter of fiscal 2017 as compared to 553.7 million USD in the first quarter of fiscal 2016. Net income and diluted net income per share were 35.0 million USD and 0.71 USD, respectively, in the first quarter of fiscal 2017.

The Company recorded a pre-tax, non-cash charge of 0.8 million USD during the first quarter of fiscal 2017 related to the planned relocation of one The Cheesecake Factory restaurant. Excluding this item, net income and diluted net income per share were 35.5 million USD and 0.72 USD, respectively.

Comparable restaurant sales at The Cheesecake Factory restaurants increased 0.3 percent in the first quarter of fiscal 2017.

«Our first quarter results were in line with our expectations as we posted our 29th consecutive quarter of positive comparable sales, again outperforming the casual dining industry», said David Overton, Chairman and Chief Executive Officer. «We remain top of mind with our guests; in fact, The Cheesecake Factory was named brand of the year in the casual dining category of the Harris Poll EquiTrend® study. In addition, we were recently recognized as one of the «100 Best Companies to Work For» by Fortune magazine for the fourth consecutive year, reinforcing that we continue to be an employer of choice in the restaurant industry».

Overton concluded, «We recently achieved two exciting international milestones. Our first location in Hong Kong opened under a licensing agreement earlier this week and we will bring The Cheesecake Factory concept to Canada, with the execution of the lease for our first Company-owned international location in Toronto».

Development

The Company continues to expect to open as many as eight Company-owned restaurants in fiscal 2017, including one relocation, which is slated to open in the second quarter.

In addition, the Company continues to expect as many as four to five restaurants to open under licensing agreements internationally in fiscal 2017. This includes the first location in Hong Kong, which opened earlier this week.

Capital Allocation

The Company’s Board of Directors declared a quarterly cash dividend of 0.24 USD per share on the Company’s common stock. The dividend is payable on May 30, 2017 to shareholders of record at the close of business on May 17, 2017.

During the first quarter of fiscal 2017, the Company repurchased approximately 150,000 shares of its common stock at a cost of 9.3 million USD. The Company continues to expect that it will return its free cash flow to shareholders in fiscal 2017 in the form of dividends and share repurchases.

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