Company Announces 21 Percent Increase in
Quarterly Dividend
The Cheesecake Factory Incorporated (NASDAQ: CAKE) today
reported financial results for the second quarter of fiscal 2015,
which ended on June 30, 2015.
Total revenues were $529.1 million in the second quarter of
fiscal 2015 as compared to $496.4 million in the prior year second
quarter. Net income and diluted net income per share were $34.7
million and $0.69, respectively, in the second quarter of fiscal
2015.
Operating Results
Comparable restaurant sales at The Cheesecake Factory
restaurants increased 2.8% in the second quarter of fiscal
2015.
“We delivered high quality results in the second quarter driven
by a strong comparable sales increase at The Cheesecake Factory,
marking our 22nd consecutive quarter of comparable sales gains and
another in which we outperformed the industry by a solid margin,”
said David Overton, Chairman and Chief Executive Officer.
“Our business is performing well across multiple dimensions. We
are operating our restaurants effectively, improving in key areas
such as food efficiency, and maintaining our high guest
satisfaction scores. In addition, favorability in the cost areas
that heavily impacted us last year contributed to significant
margin expansion and growth in earnings per share. We are well
positioned as we enter the second half of the year, with our newer
restaurants performing well and our core business on solid ground,”
continued Overton.
Development
The Company opened two The Cheesecake Factory restaurants and
one Grand Lux Cafe restaurant during the second quarter of fiscal
2015. The Company continues to expect it will open as many as 11
Company-owned restaurants domestically in fiscal 2015.
Internationally, the Company anticipates no change to as many as
three planned restaurant openings in the Middle East and Mexico
under licensing agreements in fiscal 2015, one of which opened
earlier in the year in Mexico City.
Capital Allocation
The Company’s Board of Directors declared a quarterly cash
dividend of $0.20 per share on the Company’s common stock, which
equates to a 21% increase in the Company’s quarterly dividend. The
dividend is payable on August 18, 2015 to shareholders of record at
the close of business on August 5, 2015.
During the second quarter of fiscal 2015, the Company
repurchased 77,340 shares of its common stock at a cost of $3.8
million. Year-to-date, the Company repurchased 1.7 million shares
of its common stock at a cost of $84.2 million. 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.
“Based on the confidence that we have in the strength of our
Company, our prospects for continued global growth, and the
significant level of cash that our business generates, we took
another meaningful step forward with our dividend and in our
ongoing commitment to increase total shareholder return,” concluded
Overton.
Conference Call and Webcast
The Company will hold a conference call to review its results
for the second quarter of fiscal 2015 today at 2:00 p.m. Pacific
Time. The conference call will be webcast live on the Company’s
website at investors.thecheesecakefactory.com and a replay of the
webcast will be available through August 22, 2015.
About The Cheesecake Factory Incorporated
The Cheesecake Factory Incorporated created the upscale casual
dining segment in 1978 with the introduction of its namesake
concept. The Company, through its subsidiaries, owns and operates
192 full-service, casual dining restaurants throughout the U.S.A.
and Puerto Rico, including 179 restaurants under The Cheesecake
Factory® mark; 12 restaurants under the Grand Lux Cafe® mark; and
one restaurant under the RockSugar Pan Asian Kitchen® mark.
Internationally, nine The Cheesecake Factory® restaurants operate
under licensing agreements. The Company’s bakery division operates
two bakery production facilities, in Calabasas Hills, CA and Rocky
Mount, NC, that produce quality cheesecakes and other baked
products for its restaurants, international licensees and
third-party bakery customers. In 2015, the Company was named to the
FORTUNE Magazine “100 Best Companies to Work For®” list for the
second consecutive year. To learn more about the Company, visit
www.thecheesecakefactory.com.
FORTUNE and 100 Best Companies to Work For® are registered
trademarks of Time Inc. and are used under license. From FORTUNE
Magazine, March 15, 2015 ©2015 Time Inc. FORTUNE and Time Inc. are
not affiliated with, and do not endorse products or services of,
The Cheesecake Factory Incorporated.
Safe Harbor Statement
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These statements involve known and unknown risks,
uncertainties and other factors that may cause the actual results,
performance or achievements of the Company to be materially
different from any future results, performance or achievements
expressed or implied by forward-looking statements, including
uncertainties related to the Company’s ability to: consistently
deliver dependable comparable sales results over a sustained period
of time; outperform the casual dining industry; leverage sales
increases and manage flow through; improve its food efficiency and
maintain high guest satisfaction scores; expand its operating
margin and deliver earnings per share growth; open new restaurants
that perform well; utilize capital effectively and continue to
repurchase its common stock; realize opportunities for growth both
domestically and internationally; continue to generate high levels
of cash; and increase shareholder value. In addition,
forward-looking statements made in the press release include
uncertainties related to: factors outside of the Company’s control
that impact consumer confidence and spending; current and future
macroeconomic conditions; acceptance and success of The Cheesecake
Factory in international markets; changes in unemployment rates;
the economic health of the Company’s landlords and other tenants in
retail centers in which its restaurants are located; the economic
health of suppliers, licensees, vendors and other third parties
providing goods or services to the Company; adverse weather
conditions in regions in which the Company’s restaurants are
located; factors that are under the control of government agencies,
landlords and other third parties; and other risks and
uncertainties detailed from time to time in the Company’s filings
with the Securities and Exchange Commission (“SEC”), as set forth
below. Investors are cautioned that forward-looking statements are
not guarantees of future performance and that undue reliance should
not be placed on such statements. Forward-looking statements speak
only as of the dates on which they are made and the Company
undertakes no obligation to publicly update or revise any
forward-looking statements or to make any other forward-looking
statements, whether as a result of new information, future events
or otherwise, unless required to do so by securities laws.
Investors are referred to the full discussion of risks and
uncertainties associated with forward-looking statements and the
discussion of risk factors contained in the Company’s latest Annual
Report on Form 10-K, Quarterly Reports on Form 10-Q and Current
Reports on Form 8-K as filed with the SEC, which are available at
www.sec.gov.
The Cheesecake Factory Incorporated and
Subsidiaries Consolidated Financial Statements
(unaudited; in thousands, except per share and statistical
data) 13 Weeks Ended 13 Weeks Ended
26 Weeks Ended 26 Weeks Ended Consolidated
Statements of Operations June 30, 2015 July 1,
2014 June 30, 2015 July 1, 2014 Percent
of Percent of Percent of
Percent of
Amounts
Revenue
Amounts
Revenue
Amounts
Revenue
Amounts
Revenue
Revenues $ 529,107 100.0 %
$ 496,406 100.0 % $
1,047,080 100.0 % $ 977,837
100.0 % Costs and expenses: Cost of
sales 126,623 23.9 % 120,667
24.3 % 253,235 24.2 %
240,029 24.5 % Labor expenses
168,495 31.8 % 160,777 32.4
% 339,664 32.5 % 320,227
32.7 % Other operating costs and expenses
123,675 23.4 % 119,577 24.1
% 247,110 23.6 % 235,210
24.1 % General and administrative expenses
35,345 6.7 % 29,042 5.9 %
68,420 6.5 % 60,284 6.2 %
Depreciation and amortization expenses 21,158
4.0 % 20,534 4.1 % 42,335
4.0 % 40,785 4.2 % Impairment
of assets and lease terminations - - 510
0.1 % - - 696 0.1
% Preopening costs 4,058
0.8 % 2,608
0.5 % 5,509 0.5
% 4,842 0.5 %
Total costs and expenses 479,354
90.6 % 453,715
91.4 % 956,273
91.3 % 902,073
92.3 % Income from operations 49,753
9.4 % 42,691 8.6 % 90,807
8.7 % 75,764 7.7 % Interest
and other (expense)/income, net (1,432 )
(0.3 )% (1,544 )
(0.3 )% (3,327 )
(0.3 )% (2,935 )
(0.3 )% Income before income taxes
48,321 9.1 % 41,147 8.3 %
87,480 8.4 % 72,829 7.4 %
Income tax provision 13,597
2.5 % 11,098
2.2 % 24,333
2.4 % 20,262 2.0
% Net income $ 34,724
6.6 % $ 30,049
6.1 % $ 63,147
6.0 % $ 52,567 5.4
% Basic net income per share $
0.72 $ 0.61 $ 1.29
$ 1.05 Basic weighted average shares
outstanding 48,451 49,349
48,838 50,044
Diluted net income per share $ 0.69
$ 0.59 $ 1.25
$ 1.01 Diluted weighted average shares
outstanding 50,262 51,358
50,681 52,098
Selected Segment Information Revenues: The
Cheesecake Factory restaurants $ 483,285 $
451,454 $ 956,102 $ 888,060
Other 45,822 44,952
90,978 89,777
$ 529,107 $ 496,406
$ 1,047,080 $ 977,837
Income from operations: The Cheesecake Factory
restaurants $ 77,292 $ 65,046
$ 143,993 $ 123,036 Other
5,263 4,589 11,326 9,015
Corporate (32,802 )
(26,944 ) (64,512 )
(56,287 ) $ 49,753 $
42,691 $ 90,807 $
75,764
Selected Consolidated Balance Sheet
Information
June 30, 2015
December 30, 2014
Cash and cash equivalents $ 61,548 $
58,018 Total assets
1,174,790
1,176,452 Long-term debt 25,000 -
Total liabilities 625,671 619,942
Stockholders' equity 549,119 556,510
13 Weeks Ended 13 Weeks Ended 26 Weeks Ended
26 Weeks Ended Supplemental Information
June 30, 2015 July 1, 2014 June 30, 2015
July 1, 2014 The Cheesecake Factory comparable restaurant
sales 2.8 % 1.5 % 3.5
% 1.5 % Restaurants opened during
period 3 2 3 3 Restaurants open
at period-end 192 182 192 182
Restaurant operating weeks 2,466 2,355
4,923 4,702
Reconciliation of Non-GAAP Results to GAAP Results
In addition to the results provided in accordance with Generally
Accepted Accounting Principles ("GAAP") in this press release, the
Company is providing non-GAAP measurements which present net income
and diluted net income per share excluding the impact of certain
items.
The non-GAAP measurements are intended to supplement the
presentation of the Company’s financial results in accordance with
GAAP. The Company believes that the presentation of these items
provides additional information to facilitate the comparison of
past and present financial results.
13 Weeks Ended
13 Weeks Ended 26 Weeks Ended 26 Weeks Ended
June 30, 2015 July 1, 2014 June 30, 2015
July 1, 2014 (unaudited; in thousands, except per share
data) Net income (GAAP) $ 34,724 $
30,049 $ 63,147 $ 52,567
After-tax impact from:
- Impairment of assets and lease
terminations (1)
-
306
-
418
Net income (non-GAAP) $ 34,724 $
30,355 $ 63,147 $ 52,985
Diluted net income per share (GAAP) $ 0.69
$ 0.59 $ 1.25 $ 1.01
After-tax impact from: - Impairment of assets and lease
terminations - 0.01 -
0.01 Diluted net income per share (non-GAAP)
(2) $ 0.69 $ 0.59 $
1.25 $ 1.02
(1) The pre-tax amounts associated with
these items in fiscal 2014 were $510 in the second quarter and $186
in the first quarter, and were recorded in impairment of assets and
lease terminations.
(2) Diluted net income per share may not
add due to rounding.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150722006061/en/
The Cheesecake Factory IncorporatedJill Peters,
818-871-3000investorrelations@thecheesecakefactory.com
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