Calabas Hills / CA. (cf) The Cheesecake Factory Inc. reported financial results for the second quarter of fiscal 2018, which ended on July 03, 2018. Total revenues were USD 593.2 million in the second quarter of fiscal 2018 as compared to USD 569.9 million in the second quarter of fiscal 2017. Net income and diluted net income per share were USD 28.4 million and USD 0.61, respectively, in the second quarter of fiscal 2018.
The Company recorded a pre-tax charge of USD 2.6 million during the second quarter of fiscal 2018 related to the termination of a lease for one The Cheesecake Factory restaurant. Excluding the after-tax impact from this item, net income and diluted net income per share for the second quarter of fiscal 2018 would have been USD 30.3 million and USD 0.65, respectively. Please see the Company+s reconciliation of non-GAAP financial measures at the end of this release.
Comparable restaurant sales at The Cheesecake Factory restaurants increased 1.4 percent in the second quarter of fiscal 2018.
«Comparable sales at The Cheesecake Factory and core restaurant operating performance were in line with our expectations during the second quarter», said David Overton, Chairman and Chief Executive Officer. «However, USD 4.6 million in higher group medical insurance costs year-over-year and USD 4.5 million in increased legal expenses impacted our bottom line results this quarter».
Overton continued, «We generated over USD 65 million in operating cash flow during the quarter. The consistency of our cash flow enabled us to increase our dividend for the sixth consecutive year. We continue to execute a balanced capital allocation strategy, investing in long-term growth while returning substantially all of our free cash flow to shareholders through our dividend and share repurchase program».
The Company now expects to open as many as six restaurants in fiscal 2018, including one Grand Lux Cafe, scheduled to open in August 2018, as well as the first location of Social Monk Asian Kitchen, a fast casual concept under development and expected to open in the fourth quarter of 2018.
In addition, the Company now expects three restaurants to open internationally under licensing agreements in fiscal 2018. This includes the second location in Saudi Arabia, which opened in April.
The Company+s Board of Directors declared a quarterly cash dividend of USD 0.33 per share on the Company+s common stock. The dividend is payable on August 28, 2018 to shareholders of record at the close of business on August 15, 2018.
During the second quarter of fiscal 2018, the Company repurchased approximately 140,000 shares of its common stock at a cost of USD 7.1 million.