Cheesecake Factory: Reports Q4-2021 Financial Results

Calabas Hills / CA. (cf) The Cheesecake Factory Incorporated reported financial results for the fourth quarter of fiscal 2021, which ended on December 28, 2021.

Total revenues were USD 776.7 million in the fourth quarter of fiscal 2021 compared to USD 554.6 million in the fourth quarter of fiscal 2020. Net income available to common stockholders and diluted net income per common share were USD 2.1 million and USD 0.04, respectively, in the fourth quarter of fiscal 2021.

The company recorded USD 29.1 million related to pre-tax charges of asset impairments and FRC acquisition-related items, as well as a reserve for uncertain tax positions. Excluding the after-tax impact of these items, adjusted net income and adjusted net income per share for the fourth quarter of fiscal 2021 were USD 24.9 million and USD 0.49, respectively.

Comparable restaurant sales at The Cheesecake Factory restaurants increased 33.8 percent year-over-year in the fourth quarter of fiscal 2021. Relative to the fourth quarter of fiscal 2019, comparable restaurant sales at The Cheesecake Factory restaurants increased 7.7 percent.

As of today, indoor dining restrictions have been lifted for nearly all of the company’s restaurants across all its concepts. Fiscal 2022 first quarter-to-date through February 15th comparable sales for The Cheesecake Factory restaurants increased approximately 24.3 percent year-over-year, supported by approximately 30 percent off-premise sales mix.

«We posted another quarter of solid sales performance across our brands, continuing to outperform the broader casual dining industry and recording record revenues despite the surge in Covid-19 cases from the Omicron variant towards the end of the year,» said David Overton, Chairman and Chief Executive Officer. «Specifically, fourth quarter comparable sales at The Cheesecake Factory were running at 10.6 percent going into the third week of December relative to fiscal 2019. We believe our operating results would have been in line with expectations but for the softer sales trend during the last two weeks of the quarter which coincided with the Omicron surge.»

Overton continued, «I remain proud of our teams for how they have navigated through all of the challenges this past year while continuing to deliver delicious, memorable experiences for our guests. As we look ahead, I am confident that our best in-class operators will continue to effectively manage through this volatile operating environment, and with our development pipeline in place and solid comparable sales trends across our brands, we are well-positioned to continue to take market share.»

Development

During the fourth quarter of fiscal 2021, four new restaurants opened, including The Cheesecake Factory in Huntsville, AL, North Italia in Orlando and a Blanco and a Culinary Dropout in Denver, meeting the Company’s development objective of opening 14 new restaurants across its concepts during fiscal 2021. In addition, internationally a third The Cheesecake Factory opened in Shanghai under a licensing agreement during the fourth quarter of fiscal 2021.

Balance Sheet + Cash Flow

As of December 28, 2021, the Company had total available liquidity of USD 430 million, including a cash balance of USD 190 million and availability on its revolving credit facility of USD 240 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.

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