Calabas Hills / CA. (cf) The Cheesecake Factory Incorporated reported financial results for the third quarter of fiscal 2007, which ended on October 02. Total revenues increased 15,4 percent to 375,5 million USD from 325,3 million in the third quarter of fiscal 2006. Net income and diluted net income per share were 18,5 million USD and 0,26 USD, respectively.
Operating Results: Comparable restaurant sales increased 1,2 percent in the third quarter of fiscal 2007. By concept, comparable restaurant sales increased approximately one percent at The Cheesecake Factory and increased 4,8 percent at Grand Lux Cafe in the third quarter of fiscal 2007.
«Our comparable sales performance in the third quarter remained relatively consistent with the trends we experienced during the first half of this year. We attained positive comparable sales again this quarter with only a modest level of menu price increases and our operators did a particularly good job in managing labor costs. We continue to believe that we are performing at a competitively strong level and have effectively managed to maintain an excellent value proposition for our guests while protecting our margins against the cost pressures facing all restaurant operators», said David Overton, Chairman and CEO. «In addition, Grand Lux Cafe once again delivered solid performance, especially in light of lapping a very strong 6,7 percent comparable sales growth in the third quarter of last year».
New Restaurant Openings: The company opened six Cheesecake Factory restaurants and one Grand Lux Cafe during the third quarter, and remains on track to open eight Cheesecake Factory restaurants and three Grand Lux Cafes during the fourth quarter of fiscal 2007. In total, the company expects to open 21 new restaurants in fiscal 2007, in-line with its stated guidance.
Overton: «Our fourth quarter openings are well underway with new Cheesecake Factory restaurants in both Peabody and Natick, Massachusetts already opened. Over the next two weeks, we plan to open Cheesecake Factory restaurants in Tukwila, Washington, a suburb of Seattle; Salt Lake City, Utah, our first location in Utah; and West Hartford, Connecticut, another new state for us. As we noted at the start of the year, a large number of our targeted openings in 2007 are located in the Northeast. As expected, the locations opened to date in this region have delivered strong performance. As a group, our new restaurants in the Northeast have experienced average weekly sales in excess of 250.000 USD since opening» (press release).