Calabas Hills / CA. (cf) The Cheesecake Factory Inc. reported financial results for the fourth quarter of fiscal 2017, which ended on January 02, 2018.
Total revenues were USD 571.8 million in the fourth quarter of fiscal 2017 as compared to USD 603.1 million in the fourth quarter of fiscal 2016. The fourth quarter of fiscal 2017 included 13 weeks compared to 14 weeks in the fourth quarter of fiscal 2016. Net income and diluted net income per share were USD 57.7 million and USD 1.24, respectively, in the fourth quarter of fiscal 2017.
The Company recorded a USD 38.5 million benefit to the income tax provision from a revaluation of the Company’s deferred tax assets and liabilities related to recently enacted tax reform. The Company also recorded a pre-tax, non-cash impairment charge of USD 9.1 million related to one Cheesecake Factory restaurant and one Grand Lux Cafe. Excluding these items, net income and diluted net income per share were USD 24.7 million and USD 0.53, respectively, in the fourth quarter of fiscal 2017.
Comparable restaurant sales at The Cheesecake Factory restaurants declined 0.9 percent in the fourth quarter of fiscal 2017 (13 weeks vs. 13 weeks).
«Our sales trend started to stabilize during the fourth quarter, which coupled with solid operational performance, drove comparable sales and earnings results within our expectations», said David Overton, Chairman and Chief Executive Officer. «In addition, we opened six restaurants during the quarter, including our first Company-owned international location in Canada, as we continue to execute our growth strategy».
Overton continued, «Underscoring the strength of our culture and values, we are honored to be recognized as one of the «100 Best Companies to Work For®» by FORTUNE magazine for the fifth consecutive year. As we celebrate the 40th anniversary of our founding this year, our steadfast commitment to taking exceptional care of our guests and staff members has been integral to our success. Even in the face of a challenging restaurant industry environment during 2017, this long-term mindset guides our strategic initiatives and paves the way for a solid future for The Cheesecake Factory».
Development
The Company opened five Cheesecake Factory restaurants and one RockSugar Southeast Asian Kitchen during the fourth quarter of fiscal 2017, meeting its objective to open eight Company-owned restaurants in fiscal 2017.
In addition, two Cheesecake Factory restaurants opened under licensing agreements internationally during the fourth quarter of fiscal 2017, including the first location in Bahrain and the third location in Qatar, for a total of four locations opened under licensing agreements during fiscal 2017, as expected. In addition, the first location in Beijing opened under a licensing agreement in late January, 2018.
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 March 20, 2018 to shareholders of record at the close of business on February 28, 2018.
During the fourth quarter of fiscal 2017, the Company repurchased approximately 0.4 million shares of its common stock at a cost of USD 16.6 million. In fiscal 2017, the Company repurchased a total of 2.6 million shares of its common stock at a cost of USD 123.0 million.
