Calabas Hills / CA. (cf) The Cheesecake Factory Inc. reported financial results for the first quarter of fiscal 2018, which ended on April 03, 2018. Total revenues were USD 590.7 million in the first quarter of fiscal 2018 as compared to USD 563.4 million in the first quarter of fiscal 2017. Net income and diluted net income per share were USD 26.0 million and USD 0.56, respectively, in the first quarter of fiscal 2018.
Comparable restaurant sales at The Cheesecake Factory restaurants increased 2.1 percent in the first quarter of fiscal 2018. «Comparable sales at The Cheesecake Factory were very strong during the first quarter and meaningfully outperformed the casual dining industry», said David Overton, Chairman and Chief Executive Officer. «However, increased labor costs to support the better guest traffic levels, as well as higher than expected insurance costs, impacted our bottom line results this quarter».
Overton continued, «Consistent with our long-term approach, we are making investments to maintain our high level of food quality, service and hospitality, which we believe will continue to differentiate us in the industry. In fact, The Cheesecake Factory was again named brand of the year in the casual dining category of the Harris Poll EquiTrend® study, underscoring the continued relevance of the brand and our strong guest affinity. We were pleased to see these attributes reflected in our sales trend during the first quarter and believe we can continue to take share in 2018, which will better position us to manage through the cost pressures».
Development
The Company continues to expect to open as many as four to six restaurants in fiscal 2018, including one Grand Lux Cafe, as well as the first location of a fast casual concept the Company is developing internally. The first restaurant opening is expected in the third quarter of fiscal 2018. In addition, the Company now expects as many as four restaurants to open internationally under licensing agreements in fiscal 2018. This includes the first location in Beijing, which opened in January, and the second location in Saudi Arabia, which is scheduled to open soon.
Capital Allocation
The Company’s Board of Directors declared a quarterly cash dividend of USD 0.29 per share on the Company’s common stock. The dividend is payable on May 22, 2018 to shareholders of record at the close of business on May 10, 2018. During the first quarter of fiscal 2018, the Company repurchased approximately 0.7 million shares of its common stock at a cost of USD 34.9 million.
