Cheesecake Factory: Reports Q1-2022 Financial Results

Calabas Hills / CA. (cf) The Cheesecake Factory Incorporated reported financial results for the first quarter of fiscal 2022, which ended on March 29, 2022.

Total revenues were USD 793.7 million in the first quarter of fiscal 2022 compared to USD 627.4 million in the first quarter of fiscal 2021. Net income and diluted net income per common share were USD 23.2 million and USD 0.45, respectively, in the first quarter of fiscal 2022.

Excluding the after-tax impact of a USD 0.8 million charge recorded by the Company primarily associated with FRC acquisition-related items, adjusted net income and adjusted net income per share for the first quarter of fiscal 2022 were USD 24.0 million and USD 0.47, respectively. Please see the Company’s reconciliation of non-GAAP financial measures at the end of this press release.

Comparable restaurant sales at The Cheesecake Factory restaurants increased 20.7 percent year-over-year in the first quarter of fiscal 2022.

As of today, indoor dining capacity restrictions have been lifted for all of the Company’s restaurants across all its concepts. Fiscal 2022 second quarter-to-date through April 26th comparable sales for The Cheesecake Factory restaurants increased approximately 8.2 percent year-over-year, supported by approximately 25 percent off-premise sales mix.

«Our sales trends across our brands continued to be strong during the first quarter, and this trend has sustained into the second quarter to date. Our restaurants remain competitively well positioned and we are clearly capturing market share as evidenced by our continued outperformance of the broader casual dining industry.» said David Overton, Chairman and Chief Executive Officer. «Given the sales strength and our confidence in the cash generation ability of our business, we are paying a quarterly dividend and reinstated our share repurchase program.»

Overton continued, «We were recently recognized as one of the «100 Best Companies to Work For®» by Fortune magazine for the ninth consecutive year, reinforcing that we continue to be an employer of choice in the restaurant industry. While the environment continues to be challenging, the strength of our best-in-class operators gives me confidence that we can continue to deliver delicious, memorable experiences for our guests and drive market share gains.»

Development

The Company now expects to open as many as 15 to 16 new restaurants in fiscal 2022, including as many as four Cheesecake Factory restaurants, four to five North Italia restaurants, and as many as seven FRC restaurants, including three to four Flower Child locations. This includes a Flower Child which opened subsequent to first quarter-end in Fort Worth.

In addition, in fiscal 2022 the Company expects one Cheesecake Factory restaurant to open internationally under a licensing agreement.

Balance Sheet + Cash Flow

As of March 29, 2022, the Company had total available liquidity of USD 424 million, including a cash balance of USD 184 million and availability on its revolving credit facility of USD 240 million. Total principal amount of debt outstanding was USD 475 million, including USD 345 million in principal amount of 0.375 percent convertible senior notes due 2026 and USD 130 million in principal amount drawn on the Company’s revolving credit facility.

The Company also announced that its Board of Directors declared a quarterly dividend of USD 0.27 per share to be paid on May 24, 2022 to shareholders of record at the close of business on May 11, 2022, and also reinstated the share repurchase program.

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