The Cheesecake Factory: Reports Q4-2023 Financial Results

Calabas Hills / CA. (cf) The Cheesecake Factory Incorporated reported financial results for the fourth quarter of fiscal 2023, which ended on January 02, 2024. Total revenues were USD 877.0 million in Q4-2023 compared to USD 892.8 million in Q4-2022. Q4-2023 included 13 weeks compared to 14 weeks in Q4-2022. Excluding the impact of the additional week in fiscal 2022, which contributed approximately USD 78.4 million in sales, total revenues for Q4-2023 increased 7.7 percent over the prior year period. Net income and diluted net income per share were USD 12.7 million and USD 0.26, respectively, in Q4-2023.

The Company recorded a pre-tax net expense of USD 35.6 million related to impairment of assets and lease termination expenses and Fox Restaurant Concepts (FRC) acquisition-related items. Excluding the after-tax impact of these items, adjusted net income and adjusted net income per share for Q4-2023 were USD 39.0 million and USD 0.80, respectively. Comparable restaurant sales at the restaurants increased 2.5 percent year-over-year in Q4-2023 and increased 14.0 percent relative to Q4-2019, on an operating week basis.

«Our fourth quarter results marked a strong finish to the year, with positive comparable sales growth and margin expansion contributing to record annual revenue and solid earnings growth for the year,» said Chairman and CEO David Overton. «Comparable sales and traffic at The Cheesecake Factory restaurants outperformed the broader casual dining industry in the fourth quarter, demonstrating the strength and resilience of our namesake brand and our ability to capture market share. Execution within our restaurants was outstanding with our operators delivering improvements in labor productivity, food efficiency, wage management, and hourly staff and manager retention, driving solid flow-through to support profitability.»

«During the quarter we opened nine new restaurants to strong consumer demand, and on the international front two Cheesecake Factory restaurants opened under licensing agreements, including the first location in Thailand. We believe we are well-positioned to build on this momentum and continue accelerating unit growth to achieve our longer-term development objectives. As we look ahead, we remain intently focused on leveraging our competitive strengths, including our scale, differentiated concepts and best-in-class operators to drive profitable growth and meaningful shareholder value.»


During Q4-2023, the Company opened nine new restaurants, including three Cheesecake Factory restaurants, three North Italia restaurants and three FRC restaurants. In addition, two Cheesecake Factory restaurants opened internationally under licensing agreements in China and Thailand. Subsequent to quarter-end, the Company opened one North Italia restaurant, one Flower Child and one Culinary Dropout, and one Cheesecake Factory restaurant opened internationally under a licensing agreement in Mexico.

Liquidity and Capital Allocation

As of January 02, 2024, the Company had total available liquidity of USD 292.8 million, including a cash balance of USD 56.3 million and availability on its revolving credit facility of USD 236.5 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 318,400 shares of its stock at a cost of USD 9.8 million in Q4-2023. In addition, the Company’s Board of Directors has declared a quarterly dividend of USD 0.27 per share to be paid on March 19, 2024 to shareholders of record at the close of business on March 06, 2024.