Calabas Hills / CA. (cf) The Cheesecake Factory Incorporated reported financial results for the third quarter of fiscal 2021, which ended on September 28, 2021.
Total revenues were USD 754.5 million in the third quarter of fiscal 2021 compared to USD 517.7 million in the third quarter of fiscal 2020. Net income available to common stockholders and diluted net income per common share were USD 32.7 million and USD 0.64, respectively, in the third quarter of fiscal 2021. These results reflect the impact of USD 3.3 million in higher than anticipated group medical insurance costs, as well as USD 4.6 million in incremental costs associated with the pandemic environment. Excluding the after-tax impact of the non-cash acquisition-related contingent consideration and amortization expense, adjusted net income and adjusted net income per share for the third quarter of fiscal 2021 were USD 33.2 million and USD 0.65, 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 41.1 percent year-over-year in the third quarter of fiscal 2021. Relative to the third quarter of fiscal 2019, comparable restaurant sales at The Cheesecake Factory restaurants increased 8.3 percent.
As of today, nearly all of the Company’s restaurants across its concepts are operating with no indoor dining restrictions. Fiscal 2021 fourth quarter-to-date through November 2nd comparable sales for The Cheesecake Factory restaurants increased approximately 20 percent year-over-year and 10.5 percent relative to the same period in fiscal 2019, supported by approximately 28 percent off-premise sales mix. Average weekly sales quarter-to-date are approximately USD 213,000 and off-premise average weekly sales of USD 60,000 are nearly double the level seen during the same period in fiscal 2019.
«We drove strong sales performance at The Cheesecake Factory restaurants and across our concepts during the third quarter despite the surge in Covid-19 cases from the Delta variant,» said David Overton, Chairman and Chief Executive Officer. «Our teams also generated solid profitability in the face of higher than anticipated group medical insurance costs and pandemic environment cost pressures during the quarter.»
Overton continued, «Sales across our concepts further strengthened early in the fourth quarter with continued strong contribution from the off-premise channel. We also opened eight new restaurants during the third quarter and fourth quarter-to date periods, meeting our development objective to open as many as 14 new restaurants across our concepts this year. With a strong pipeline in place, we believe we are well-positioned to achieve our targeted 7 percent unit growth next year, while we continue to focus on driving comparable sales growth and managing through the continued volatility in the operating environment.»
Development
During the third quarter of fiscal 2021, four new restaurants opened, including North Italia and Flower Child in the Phoenix area, North Italia in the Nashville area, and Blanco in the Chicago area. Subsequent to quarter-end, The Cheesecake Factory opened in Huntsville, AL, North Italia opened in Orlando and both Blanco and Culinary Dropout opened in Denver. The Company met its development objective of opening 14 new restaurants across its concepts during fiscal 2021. Internationally, The Cheesecake Factory opened a third location in Shanghai this week under a licensing agreement.
Balance Sheet + Cash Flow
As of September 28, 2021, the Company had total available liquidity of USD 371.1 million, including a cash balance of USD 131.0 million and availability on its revolving credit facility of USD 240.1 million. Total principal amount of debt outstanding was USD 475 million, including USD 345 million of 0.375 percent convertible senior notes due 2026 and USD 130 million drawn on the Company’s revolving credit facility.
