The Cheesecake Factory: Preliminary Q1-2020 Sales Update

Calabas Hills / CA. (cf) The Cheesecake Factory Incorporated provided a preliminary first quarter fiscal 2020 sales update given the impact of Covid-19. First quarter fiscal 2020 comparable restaurant sales at The Cheesecake Factory restaurants are expected to be down approximately 13 percent. These results reflect quarter-to-date through February comparable sales growth of approximately 3 percent, which was above the broader casual dining industry trend during that period. March comparable sales declined approximately 46 percent, reflecting the impact of Covid-19.

The Cheesecake Factory restaurants have a long-standing business in the off-premise channel, which enabled a quick pivot to an off-premise only operating model in all open restaurants as required by state and local officials. The Company has seen off-premise sales recently accelerate approximately 85 percent since the fiscal fourth quarter 2019 level. On an annualized basis, current off-premise sales would equate to over USD 3 million per unit, on average. The restaurants are operating sustainably at present under this model. Currently, 30 locations across the Company’s concepts, including three The Cheesecake Factory restaurants, are temporarily closed.