Cheesecake Factory: Reports Q1-2024 Financial Results

Calabas Hills / CA. (cf) The Cheesecake Factory Incorporated reported financial results for the first quarter of fiscal 2024, which ended on April 02, 2024. Total revenues were USD 891.2 million in the first quarter of fiscal 2024 compared to USD 866.1 million in the first quarter of fiscal 2023. Net income and diluted net income per share were USD 33.2 million and USD 0.68, respectively, in the first quarter of fiscal 2024.

The Company recorded a pre-tax net expense of USD 3.2 million related to impairment of assets and lease termination expenses 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 2024 were USD 35.6 million and USD 0.73, 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 declined 0.6 percent year-over-year in the first quarter of fiscal 2024.

«The Cheesecake Factory restaurants comparable sales and traffic once again meaningfully outperformed the industry,» said David Overton, Chairman and Chief Executive Officer. «Our first quarter sales improved throughout the quarter culminating at the high-end of our expectations. Our operators continued to deliver improvements in labor productivity, food efficiency, and hourly staff and manager retention, all of which contributed to significant growth in profitability.»

«Our success is undeniably linked to the hard work and dedication of our experienced restaurant teams who enable us to deliver the distinct, high quality dining experiences that have distinguished The Cheesecake Factory as one of the most differentiated restaurant concepts in the casual dining industry for over 45 years. We are honored to have been named to the Fortune magazine ‘100 Best Companies to Work For’ list for the 11th consecutive year, reinforcing our belief that we are an employer of choice.»

Development

During the first quarter of fiscal 2024, the Company opened five new restaurants, including two North Italia restaurants, two FRC restaurants, and one Flower Child location. In addition, one Cheesecake Factory restaurant opened internationally under a licensing agreement in Mexico. Subsequent to quarter-end, one Cheesecake Factory restaurant opened internationally under a licensing agreement in Asia.

The Company continues to expect to open as many as 22 new restaurants in fiscal 2024, including as many as three to four The Cheesecake Factory restaurants, six to seven North Italia restaurants, six to seven Flower Child locations, and six to seven FRC restaurants.