Calabas Hills / CA. (cf) The Cheesecake Factory Incorporated reported financial results for the fourth quarter of fiscal 2022, which ended on January 03, 2023.
Total revenues were USD 892.8 million in the fourth quarter of fiscal 2022 compared to USD 776.7 million in the fourth quarter of fiscal 2021. The fourth quarter of fiscal 2022 included 14 weeks compared to 13 weeks in the fourth quarter of fiscal 2021; the additional week in fiscal 2022 contributed approximately USD 78.4 million of sales. Net loss and diluted net loss per common share were USD 3.3 million and USD 0.07, respectively, in the fourth quarter of fiscal 2022.
The Company recorded USD 41.5 million related to pre-tax charges of asset impairments and FRC acquisition-related items. Excluding the after-tax impact of these items, adjusted net income and adjusted net income per share for the fourth quarter of fiscal 2022 were USD 27.4 million and USD 0.56, 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 4.0 percent year-over-year in the fourth quarter of fiscal 2022 (14 weeks versus 14 weeks). Relative to fiscal 2019, fourth quarter comparable restaurant sales at The Cheesecake Factory restaurants increased 11.4 percent (14 weeks versus 14 weeks). Through February 21st, first quarter-to-date comparable sales for The Cheesecake Factory restaurants increased approximately 9.5 percent year-over-year and 17.0 percent as compared to the same period in fiscal 2019.
“Our fourth quarter performance was a solid finish to a challenging year marked by persistent inflation, volatility and a dynamic operating environment,” said David Overton, Chairman and Chief Executive Officer. “Our best-in-class operators continued to do an excellent job of managing their restaurants, building sales and delivering delicious, memorable experiences for our valued guests.
“During the quarter we opened eight new restaurants and successfully implemented incremental pricing to support our stated objective of recovering our operating margins. We believe the strong consumer demand we experienced at our new restaurant openings and continued positive sales trends following our pricing actions demonstrate the strength and resilience of our concepts. Building on this momentum, we remain intently focused on effectively managing through higher costs and potential macro headwinds to protect our long-term sales and margins. Given the strength of our operations team, our brands and our commitment to managing the business for longterm, profitable growth, we believe we are well-positioned to take market share and drive shareholder value in the quarters and years ahead.”
During the fourth quarter of fiscal 2022, we opened eight new restaurants, including two Cheesecake Factory restaurants in Nashville, TN and Corpus Christi, TX and two North Italia restaurants in The Woodlands, Texas, a suburb of Houston, and Torrance, CA and four FRC restaurants, including two Flower Child locations in Austin, TX and Chandler, AZ, a Fly Bye in Phoenix, AZ and Pushing Daisies, FRC’s newest concept in Nashville, TN. In addition, one Cheesecake Factory restaurant opened internationally in Mexico under a licensing agreement during the fourth quarter of fiscal 2022.
Liquidity and Capital Allocation
As of January 3, 2023, the Company had total available liquidity of USD 354 million, including a cash balance of USD 115 million and availability on its revolving credit facility of USD 239 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.
The Company repurchased approximately 663,700 shares of its common stock at a cost of USD 21.6 million in the fourth quarter of fiscal 2022, and also announced today that its Board of Directors declared a quarterly dividend of USD 0.27 per share to be paid on March 21, 2023 to shareholders of record at the close of business on March 8, 2023.