The Cheesecake Factory Reports Results for Fourth
The Cheesecake Factory Reports Results for Fourth Quarter of Fiscal 2012
CALABASAS HILLS, Calif.--(BUSINESS WIRE)--Feb. 20, 2013-- The Cheesecake Factory Incorporated (NASDAQ: CAKE) today reported financial results for the fourth quarter of fiscal 2012, which ended on January 1, 2013.
Total revenues were $464.7 million in the fourth quarter of fiscal 2012 as compared to $477.7 million in the prior year fourth quarter (13 weeks vs. 14 weeks). Net income and diluted net income per share were $22.1 million and $0.40, respectively, in the fourth quarter of fiscal 2012.
The Company recorded a pre-tax charge of $9.5 million related to discontinuing operations of three Grand Lux Cafe restaurants and impairing one The Cheesecake Factory restaurant during the fourth quarter of fiscal 2012. These items decreased diluted net income per share by approximately $0.11. Excluding these items, net income was $27.9 million and diluted net income per share was $0.51.
Operating Results
Comparable restaurant sales at The Cheesecake Factory and Grand Lux Cafe increased 0.9% in the fourth quarter of fiscal 2012, but were negatively impacted by approximately 0.6% due to Hurricane Sandy. Excluding this weather impact, comparable restaurant sales increased 1.5%.
By concept, comparable restaurant sales grew 1.3% at The Cheesecake Factory and declined 3.2% at Grand Lux Cafe.
“The fourth quarter marks the twelfth consecutive quarter in which we delivered positive comparable restaurant sales. Our sales were competitively quite strong and within our expected range, absent the hurricane. Our operators did a great job of maintaining high guest satisfaction scores while managing their cost structures to deliver higher year-over-year restaurant-level margins. Our fourth quarter results are the culmination of strong performance this year, including a solid increase in comparable restaurant sales, a significant step forward in returning to peak operating margins and execution of our longer-term earnings per share growth goal,” said David Overton, Chairman and Chief Executive Officer.
“We expect 2013 to be another year of growth, through the expansion of our restaurants, both domestically and internationally. Strategically, we will continue to focus on food quality and service as key differentiators and business drivers, contributing to our expectation for higher comparable restaurant sales, higher earnings per share and increasing shareholder value,” concluded Overton.
Development
The Company opened four new restaurants in the fourth quarter of fiscal 2012, executing on its objective to open eight new restaurants for the full year.
Internationally, two new The Cheesecake Factory restaurants opened in the Middle East in the fourth quarter of fiscal 2012, for a total of three new international locations opened during the year under a licensing agreement.
In fiscal 2013, the Company continues to expect it will open as many as eight to ten new restaurants. Internationally, the Company expects as many as three new restaurants to open under a licensing agreement.
Capital Allocation
The Company’s Board of Directors declared a quarterly cash dividend of $0.12 per share on the Company’s common stock. The dividend is payable on March 19, 2013 to shareholders of record at the close of business on March 6, 2013.
During the fourth quarter of fiscal 2012, the Company repurchased 787,995 shares of its common stock at a cost of $26.4 million. For the full year of fiscal 2012, the Company repurchased 3,218,094 shares at a cost of $101.4 million. Including dividends, the Company returned $114.3 million in cash to shareholders in fiscal 2012, exceeding its plan for the year.
The Company expects that it will return the majority of its free cash flow to shareholders in fiscal 2013 in the form of dividends and share repurchases.