Calabas Hills / CA. (cf) The Cheesecake Factory Incorporated reported financial results for the first quarter of fiscal 2023, which ended on April 04, 2023. Total revenues were USD 866.1 million in the first quarter of fiscal 2023 compared to USD 793.7 million in the first quarter of fiscal 2022. Net income and diluted net income per share were USD 28.1 million and USD 0.56, respectively, in the first quarter of fiscal 2023.
The Company recorded USD 3.4 million related to pre-tax charges of impairment of assets and lease termination expense and Fox Restaurant Concepts («FRC») acquisition-related items. Excluding the after-tax impact of these items, adjusted net income and adjusted net income per share for the first quarter of fiscal 2023 were USD 30.6 million and USD 0.61, respectively. Please see the Company’s reconciliation of non-GAAP financial measures at the end of this press release.
Comparable restaurant sales at the Company’s restaurants increased 5.7 percent year-over-year in the first quarter of fiscal 2023 and increased 14.9 percent relative to fiscal 2019, on an operating week basis.
«We were pleased with our first quarter performance highlighted by comparable sales growth across our portfolio of concepts. We delivered a solid start to the year with revenue finishing in-line with our expectations and adjusted net income margin at the high end of our guidance range,» said David Overton, Chairman and CEO. «Consolidated revenue increased 9.1 percent over the prior year period, driven by sustained healthy consumer demand including strong contributions from the off-premise channel.»
Overton continued, «Our strategy continues to be guided by our longstanding commitment to deliver distinct, high quality dining experiences and exceptional hospitality, the hallmarks of our success that have positioned us as a leader in casual dining for over 45 years. We are honored to have been named to the Fortune magazine ‘100 Best Companies to Work For’ list for the tenth consecutive year, underscoring our position as a best-in-class employer.»
Overton concluded, «Our solid topline results in the quarter illustrate the broad and enduring appeal of our concepts, and with input costs gradually stabilizing within our range of expectations, we anticipate building on our first quarter operating margin performance going forward.»
During the first quarter of fiscal 2023, we opened two new restaurants, a Doughbird in Nashville, TN and a Flower Child in Tucson, AZ. The Company continues to expect to open as many as 20 to 22 new restaurants in fiscal 2023, including as many as five to six The Cheesecake Factory restaurants, five to six North Italia restaurants, and as many as ten FRC restaurants, including three to four Flower Child locations. In addition, in fiscal 2023 the Company expects two to three The Cheesecake Factory restaurants to open internationally under licensing agreements.
Liquidity and Capital Allocation
As of April 04, 2023, the Company had total available liquidity of USD 355 million, including a cash balance of USD 116 million and availability on its revolving credit facility of USD 239 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 repurchased approximately 341,500 shares of its stock at a cost of USD 12.4 million in the first quarter of fiscal 2023, and also announced today that its Board of Directors declared a quarterly dividend of USD 0.27 per share to be paid on June 6, 2023 to shareholders of record at the close of business on May 24, 2023.