Cheesecake Factory: Reports Q2-2022 Financial Results

Calabas Hills / CA. (cf) The Cheesecake Factory Incorporated reported financial results for the second quarter of fiscal 2022, which ended on June 28, 2022.

Total revenues were USD 832.6 million in the second quarter of fiscal 2022 compared to USD 769.0 million in the second quarter of fiscal 2021. Net income and diluted net income per share were USD 25.7 million and USD 0.50, respectively, in the second 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 second quarter of fiscal 2022 were USD 26.4 million and USD 0.52, 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 4.7 percent year-over-year in the second quarter of fiscal 2022.

«We were pleased with our second quarter topline results across our brands, as we continued to outperform the broader casual dining industry, underscoring the strength of our portfolio,» said David Overton, Chairman and Chief Executive Officer. «Within the four walls of our restaurants, our tenured operators remained focused on delivering delicious, memorable experiences for our guests while maintaining our high labor productivity and food efficiency results.»

«The inflationary environment remains dynamic and in the second quarter we faced measurably higher costs than anticipated. Despite these near-term headwinds, we remain committed to returning margins to pre-pandemic levels while managing our business for the long-term. With record restaurant staffing levels in July and our proven track record of resiliency, I remain confident in our ability to deliver on our objectives and create long-term shareholder value.»

Development

The Company now expects to open as many as 15 new restaurants in fiscal 2022, including as many as four Cheesecake Factory restaurants, four North Italia restaurants, and as many as seven FRC restaurants, including three Flower Child locations. This includes the opening of the first brick and mortar location of Fly Bye, FRC’s newest fast casual dining concept offering Detroit-style pizza and crispy chicken, which opened subsequent to second quarter-end in Phoenix, AZ.

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

Liquidity and Capital Allocation

During the second quarter, the Company generated USD 54.0 million in cash flow from operating activities.

As of June 28, 2022, the Company had total available liquidity of USD 433 million, including a cash balance of USD 195 million and availability on its revolving credit facility of USD 238 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 360,000 shares of its common stock at a cost of USD 10.9 million in the second quarter of fiscal 2022, and also announced today that its Board of Directors declared a quarterly dividend of USD 0.27 per share to be paid on August 23, 2022 to shareholders of record at the close of business on August 10, 2022.

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