Calabas Hills / CA. (cf) The Cheesecake Factory Inc. reported financial results for the third quarter of fiscal 2015, which ended on September 29, 2015. Total revenues were 526.7 million USD in the third quarter of fiscal 2015 as compared to 499.1 million USD in the prior year third quarter. Net income and diluted net income per share were 26.2 million USD and 0.52 USD, respectively, in the third quarter of fiscal 2015.
The Company recorded a pre-tax, non-cash charge of 6.0 million USD related to the impairment of RockSugar Pan Asian Kitchen during the third quarter of fiscal 2015. Excluding this item, net income was 29.8 million USD and diluted net income per share was 0.59 USD.
Comparable restaurant sales at The Cheesecake Factory restaurants increased 2.2 percent in the third quarter of fiscal 2015.
«The consistency of our results continues to be evident as we delivered our 23rd consecutive quarter of positive comparable sales. We successfully lapped our most difficult sales comparison of the year and continued to exceed the performance of the casual dining industry overall during this past quarter», said David Overton, Chairman and Chief Executive Officer.
«We experienced similar cost dynamics to the second quarter, with favorability in costs that affected our results last year helping to offset some of the wage inflation that many restaurants and retailers are experiencing. Our solid sales growth combined with healthy four-wall and total operating margin expansion drove earnings per share growth in excess of 20 percent. As we look ahead to 2016, we remain focused on the long-term drivers of our business – innovation, hospitality and operational excellence – and are firmly committed to utilizing our capital to produce the highest returns and maximize total shareholder return», concluded Overton.
The Company continues to expect to open as many as eleven Company-owned restaurants domestically in fiscal 2015. During the remainder of the fourth quarter, the Company expects to open five restaurants, one of which is scheduled to open this week.
Internationally, the Company anticipates as many as three restaurants will open in the Middle East and Mexico under licensing agreements in fiscal 2015, consistent with its prior expectations. Year to date, one international location has opened in Mexico.
The Company’s Board of Directors declared a quarterly cash dividend of 0.20 USD per share on the Company’s common stock. The dividend is payable on November 23, 2015 to shareholders of record at the close of business on November 9, 2015.
During the third quarter of fiscal 2015, the Company repurchased 59’522 shares of its common stock at a cost of 3.2 million USD. Year to date, the Company repurchased 1.8 million shares of its common stock at a cost of 87.4 million USD. The Company repaid the balance on its revolving credit facility in the third quarter of fiscal 2015, earlier than planned, and exited the quarter with no funded debt on its balance sheet (Image: megan.chromik).