Cheesecake Factory: Reports Results for Q1/2015

Calabas Hills / CA. (cf) The Cheesecake Factory Inc. reported financial results for the first quarter of fiscal 2015, which ended on March 31, 2015. Total revenues were 518.0 million USD in the first quarter of fiscal 2015 as compared to 481.4 million USD in the prior year first quarter. Net income and diluted net income per share were 28.4 million USD and 0.56 USD, respectively, in the first quarter of fiscal 2015.

Operating Results

Comparable restaurant sales at The Cheesecake Factory restaurants increased 4.2 percent in the first quarter of fiscal 2015. «We delivered a remarkable comparable sales increase at The Cheesecake Factory in the first quarter, beginning our sixth consecutive year of achieving positive quarterly comparable sales. Importantly, we experienced a solid increase in guest traffic during the quarter on the strength of our brand and highly differentiated guest experience. We also performed particularly well from a competitive standpoint, considerably outpacing the industry and increasing our market share», said David Overton, Chairman and Chief Executive Officer. «Our operators did an excellent job of leveraging the increase in sales by appropriately managing flow through, which drove a meaningful increase in margins and earnings growth. The demand for our brand combined with our operational execution drove strong overall performance this quarter, as we deliver on our commitment to increase shareholder value», concluded Overton.

Development

The Company continues to expect to open as many as eleven Company-owned restaurants domestically in fiscal 2015. The first Company-owned restaurant opening is expected in the second quarter of fiscal 2015. Internationally, one new Cheesecake Factory restaurant opened in Mexico in the first quarter of fiscal 2015 under a licensing agreement. The Company now expects as many as three restaurants to open in the Middle East and Mexico under licensing agreements in fiscal 2015.

Capital Allocation

The Company´s Board of Directors declared a quarterly cash dividend of 0.165 USD per share on the Company´s common stock. The dividend is payable on May 19, 2015 to shareholders of record at the close of business on May 6, 2015. During the first quarter of fiscal 2015, the Company repurchased 1.7 million shares of its common stock at a cost of 80.4 million USD. The Company continues to expect that it will return its free cash flow to shareholders in fiscal 2015 in the form of dividends and share repurchases.