The Cheesecake Factory Reports Results for Second Quarter of Fiscal 2024
Total revenues were
The Company recorded a pre-tax net expense of
Comparable restaurant sales at
“Building on our first quarter momentum, we delivered solid top- and bottom-line results in the second quarter contributing to a strong performance in the first half of the year,” said
“We opened five new restaurants across various concepts and markets during the second quarter. The strong demand and sales performance at our new restaurant openings underscores the broad appeal of our experiential concepts. With 11 restaurants opened as of today, we are well-positioned to meet our development objective to open as many as 22 new restaurants in 2024. Most importantly, following three consecutive quarters of stable topline revenue, strong operational execution and significant profitability growth, we generated the consistent results that
Development
During the second quarter of fiscal 2024, the Company opened five new restaurants, including one
The Company continues to expect to open as many as 22 new restaurants in fiscal 2024, including as many as three
Liquidity and Capital Allocation
As of
The Company repurchased approximately 111,400 shares of its stock at a cost of
Conference Call and Webcast
The Company will hold a conference call to review its results for the second quarter of fiscal 2024 today at
About
From Fortune. ©2024
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as codified in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, without limitation, statements regarding consumer demand and restaurant development. Such forward-looking statements include all other statements that are not historical facts, as well as statements that are preceded by, followed by or that include words or phrases such as “believe,” “plan,” “will likely result,” “expect,” “intend,” “will continue,” “is anticipated,” “estimate,” “project,” “may,” “could,” “would,” “should” and similar expressions. These statements are based on current expectations and involve risks and uncertainties which may cause results to differ materially from those set forth in such statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and that undue reliance should not be placed on such statements. These forward-looking statements may be affected by various factors including: economic, public health and political conditions that impact consumer confidence and spending, including increased interest rates, periods of heightened inflation and market instability, and armed conflicts; supply chain disruptions; demonstrations, political unrest, potential damage to or closure of the Company’s restaurants and potential reputational damage to the Company or any of its brands; pandemics and related containment measures, including the potential for quarantines or restriction on in-person dining; acceptance and success of
|
||||||||||||||||||||||||
Condensed 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 Income |
|
|
|
|
|
|
|
|||||||||||||||||
Amount |
Percent of
|
|
Amount |
Percent of
|
|
Amount |
Percent of
|
|
Amount |
Percent of
|
||||||||||||||
|
|
|
||||||||||||||||||||||
Revenues |
$ |
904,042 |
|
100.0 |
% |
$ |
866,170 |
|
100.0 |
% |
$ |
1,795,265 |
|
100.0 |
% |
$ |
1,732,284 |
|
100.0 |
% |
||||
Costs and expenses: | ||||||||||||||||||||||||
Food and beverage costs |
|
201,694 |
|
22.3 |
% |
|
201,094 |
|
23.2 |
% |
|
404,947 |
|
22.6 |
% |
|
407,318 |
|
23.5 |
% |
||||
Labor expenses |
|
317,282 |
|
35.1 |
% |
|
306,149 |
|
35.3 |
% |
|
638,212 |
|
35.5 |
% |
|
617,677 |
|
35.7 |
% |
||||
Other operating costs and expenses |
|
239,097 |
|
26.4 |
% |
|
226,996 |
|
26.2 |
% |
|
472,638 |
|
26.3 |
% |
|
457,925 |
|
26.4 |
% |
||||
General and administrative expenses |
|
54,384 |
|
6.0 |
% |
|
54,488 |
|
6.4 |
% |
|
114,750 |
|
6.4 |
% |
|
108,557 |
|
6.3 |
% |
||||
Depreciation and amortization expenses |
|
24,960 |
|
2.8 |
% |
|
23,332 |
|
2.7 |
% |
|
49,716 |
|
2.8 |
% |
|
46,287 |
|
2.7 |
% |
||||
Impairment of assets and lease termination (income)/expenses |
|
(188 |
) |
0.0 |
% |
|
(653 |
) |
-0.1 |
% |
|
1,895 |
|
0.1 |
% |
|
1,589 |
|
0.1 |
% |
||||
Acquisition-related contingent consideration, compensation and amortization expenses |
|
1,146 |
|
0.1 |
% |
|
1,287 |
|
0.1 |
% |
|
2,267 |
|
0.1 |
% |
|
2,476 |
|
0.1 |
% |
||||
Preopening costs |
|
6,975 |
|
0.8 |
% |
|
6,006 |
|
0.7 |
% |
|
12,855 |
|
0.7 |
% |
|
9,058 |
|
0.5 |
% |
||||
Total costs and expenses |
|
845,350 |
|
93.5 |
% |
|
818,699 |
|
94.5 |
% |
|
1,697,280 |
|
94.5 |
% |
|
1,650,887 |
|
95.3 |
% |
||||
Income from operations |
|
58,692 |
|
6.5 |
% |
|
47,471 |
|
5.5 |
% |
|
97,985 |
|
5.5 |
% |
|
81,397 |
|
4.7 |
% |
||||
Interest and other expense, net |
|
(2,348 |
) |
(0.3 |
)% |
|
(2,162 |
) |
(0.3 |
)% |
|
(4,109 |
) |
(0.3 |
)% |
|
(4,042 |
) |
(0.2 |
)% |
||||
Income before income taxes |
|
56,344 |
|
6.2 |
% |
|
45,309 |
|
5.2 |
% |
|
93,876 |
|
5.2 |
% |
|
77,355 |
|
4.5 |
% |
||||
Income tax provision |
|
3,900 |
|
0.4 |
% |
|
2,634 |
|
0.3 |
% |
|
8,241 |
|
0.4 |
% |
|
6,630 |
|
0.4 |
% |
||||
Net income |
$ |
52,444 |
|
5.8 |
% |
$ |
42,675 |
|
4.9 |
% |
$ |
85,635 |
|
4.8 |
% |
$ |
70,725 |
|
4.1 |
% |
||||
Basic net income per share |
$ |
1.10 |
|
$ |
0.88 |
|
$ |
1.79 |
|
$ |
1.46 |
|
||||||||||||
Basic weighted average shares outstanding |
|
47,702 |
|
|
48,492 |
|
|
47,726 |
|
|
48,593 |
|
||||||||||||
Diluted net income per share |
$ |
1.08 |
|
$ |
0.87 |
|
$ |
1.76 |
|
$ |
1.43 |
|
||||||||||||
Diluted weighted average shares outstanding |
|
48,775 |
|
|
49,085 |
|
|
48,685 |
|
|
49,296 |
|
13 Weeks Ended | 13 Weeks Ended | 26 Weeks Ended | 26 Weeks Ended | |||||||||||||||||||
Selected Segment Information |
|
|
|
|
||||||||||||||||||
Revenues: | ||||||||||||||||||||||
|
$ |
676,697 |
|
$ |
652,481 |
|
$ |
1,344,491 |
|
$ |
1,308,481 |
|
||||||||||
North Italia |
|
75,514 |
|
|
65,934 |
|
|
146,388 |
|
|
129,237 |
|
||||||||||
Other FRC |
|
73,637 |
|
|
65,728 |
|
|
147,866 |
|
|
134,368 |
|
||||||||||
Other |
|
78,194 |
|
|
82,027 |
|
|
156,520 |
|
|
160,198 |
|
||||||||||
Total |
$ |
904,042 |
|
$ |
866,170 |
|
$ |
1,795,265 |
|
$ |
1,732,284 |
|
||||||||||
Income/(loss) from operations: | ||||||||||||||||||||||
|
$ |
101,035 |
|
$ |
85,677 |
|
$ |
187,106 |
|
$ |
164,073 |
|
||||||||||
North Italia |
|
5,507 |
|
|
6,627 |
|
|
8,677 |
|
|
11,233 |
|
||||||||||
Other FRC |
|
3,590 |
|
|
6,079 |
|
|
9,882 |
|
|
14,790 |
|
||||||||||
Other |
|
(51,440 |
) |
|
(50,912 |
) |
|
(107,680 |
) |
|
(108,699 |
) |
||||||||||
Total |
$ |
58,692 |
|
$ |
47,471 |
|
$ |
97,985 |
|
$ |
81,397 |
|
||||||||||
Depreciation and amortization expenses: | ||||||||||||||||||||||
|
$ |
16,257 |
|
$ |
16,235 |
|
$ |
33,100 |
|
$ |
32,244 |
|
||||||||||
North Italia |
|
2,322 |
|
|
1,668 |
|
|
4,293 |
|
|
3,135 |
|
||||||||||
Other FRC |
|
2,790 |
|
|
1,809 |
|
|
5,215 |
|
|
3,736 |
|
||||||||||
Other |
|
3,591 |
|
|
3,620 |
|
|
7,108 |
|
|
7,172 |
|
||||||||||
Total |
$ |
24,960 |
|
$ |
23,332 |
|
$ |
49,716 |
|
$ |
46,287 |
|
||||||||||
Impairment of assets and lease termination (income)/expenses: | ||||||||||||||||||||||
|
$ |
267 |
|
$ |
38 |
|
$ |
2,126 |
|
|
131 |
|
||||||||||
North Italia |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
||||||||||
Other FRC |
|
- |
|
|
- |
|
|
- |
|
|
55 |
|
||||||||||
Other |
|
(455 |
) |
|
(691 |
) |
|
(231 |
) |
|
1,403 |
|
||||||||||
Total |
$ |
(188 |
) |
$ |
(653 |
) |
$ |
1,895 |
|
$ |
1,589 |
|
||||||||||
Preopening costs: | ||||||||||||||||||||||
|
$ |
2,374 |
|
$ |
3,091 |
|
$ |
4,132 |
|
$ |
4,539 |
|
||||||||||
North Italia |
|
1,412 |
|
|
618 |
|
|
3,414 |
|
|
1,064 |
|
||||||||||
Other FRC |
|
2,186 |
|
|
1,999 |
|
|
3,910 |
|
|
2,720 |
|
||||||||||
Other |
|
1,003 |
|
|
298 |
|
|
1,399 |
|
|
735 |
|
||||||||||
Total |
$ |
6,975 |
|
$ |
6,006 |
|
$ |
12,855 |
|
$ |
9,058 |
|
||||||||||
13 Weeks Ended | 13 Weeks Ended | 26 Weeks Ended | 26 Weeks Ended | |||||||||||||||||||
|
|
|
|
|
||||||||||||||||||
Comparable restaurant sales vs. prior year |
|
1.4 |
% |
|
1.5 |
% |
|
0.4 |
% |
|
3.6 |
% |
||||||||||
Restaurants opened during period |
|
1 |
|
|
1 |
|
|
1 |
|
|
1 |
|
||||||||||
Restaurants open at period-end |
|
217 |
|
|
211 |
|
|
217 |
|
|
211 |
|
||||||||||
Restaurant operating weeks |
|
2,808 |
|
|
2,734 |
|
|
5,615 |
|
|
5,471 |
|
||||||||||
North Italia operating information: | ||||||||||||||||||||||
Comparable restaurant sales vs. prior year |
|
2 |
% |
|
8 |
% |
|
3 |
% |
|
8 |
% |
||||||||||
Restaurants opened during period |
|
1 |
|
|
- |
|
|
3 |
|
|
- |
|
||||||||||
Restaurants open at period-end |
|
39 |
|
|
33 |
|
|
39 |
|
|
33 |
|
||||||||||
Restaurant operating weeks |
|
499 |
|
|
429 |
|
|
979 |
|
|
858 |
|
||||||||||
Other |
||||||||||||||||||||||
Restaurants opened during period |
|
1 |
|
|
2 |
|
|
3 |
|
|
3 |
|
||||||||||
Restaurants open at period-end |
|
43 |
|
|
37 |
|
|
43 |
|
|
37 |
|
||||||||||
Restaurant operating weeks |
|
549 |
|
|
462 |
|
|
1,079 |
|
|
913 |
|
||||||||||
Other operating information:(2) | ||||||||||||||||||||||
Restaurants opened during period |
|
2 |
|
|
- |
|
|
3 |
|
|
1 |
|
||||||||||
Restaurants open at period-end |
|
41 |
|
|
40 |
|
|
41 |
|
|
40 |
|
||||||||||
Restaurant operating weeks |
|
520 |
|
|
520 |
|
|
1,036 |
|
|
1,035 |
|
||||||||||
Number of company-owned restaurants: | ||||||||||||||||||||||
|
|
217 |
|
|||||||||||||||||||
North Italia |
|
39 |
|
|||||||||||||||||||
Other FRC |
|
43 |
|
|||||||||||||||||||
Other |
|
41 |
|
|||||||||||||||||||
Total |
|
340 |
|
|||||||||||||||||||
Number of international-licensed restaurants: | ||||||||||||||||||||||
|
|
34 |
|
|||||||||||||||||||
(1) The Other FRC segment includes all FRC brands except |
||||||||||||||||||||||
(2) The Other segment includes the Flower Child, |
||||||||||||||||||||||
Selected Consolidated Balance Sheet Information |
|
|
||||||||||||||||||||
Cash and cash equivalents |
$ |
40,654 |
$ |
56,290 |
||||||||||||||||||
Long-term debt, net of issuance costs (1) |
|
471,054 |
|
470,047 |
(1) Includes |
Reconciliation of Non-GAAP Results to GAAP Results
In addition to the results provided in accordance with accounting principles generally accepted in
|
||||||||||||||||||||
Reconciliation of Non-GAAP Financial Measures | ||||||||||||||||||||
(unaudited; in thousands, except per share data) | ||||||||||||||||||||
13 Weeks Ended | 13 Weeks Ended | 26 Weeks Ended | 26 Weeks Ended | |||||||||||||||||
|
|
|
|
|||||||||||||||||
Net income (GAAP) |
$ |
52,444 |
|
$ |
42,675 |
|
$ |
85,635 |
|
$ |
70,725 |
|
||||||||
Impairment of assets and lease termination (income)/expenses(1) |
|
(188 |
) |
|
(653 |
) |
|
1,895 |
|
|
1,589 |
|
||||||||
Acquisition-related contingent consideration, compensation and amortization expenses(2) |
|
1,146 |
|
|
1,287 |
|
|
2,267 |
|
|
2,476 |
|
||||||||
Tax effect of adjustments(3) |
|
(249 |
) |
|
(165 |
) |
|
(1,082 |
) |
|
(1,057 |
) |
||||||||
Adjusted net income (non-GAAP) |
$ |
53,153 |
|
$ |
43,144 |
|
$ |
88,715 |
|
$ |
73,733 |
|
||||||||
Diluted net income per share (GAAP) |
$ |
1.08 |
|
$ |
0.87 |
|
$ |
1.76 |
|
$ |
1.43 |
|
||||||||
Impairment of assets and lease termination (income)/expenses |
|
(0.00 |
) |
|
(0.01 |
) |
|
0.04 |
|
|
0.03 |
|
||||||||
Acquisition-related contingent consideration, compensation and amortization expenses |
|
0.02 |
|
|
0.03 |
|
|
0.05 |
|
|
0.05 |
|
||||||||
Tax effect of adjustments |
|
(0.01 |
) |
|
(0.00 |
) |
|
(0.02 |
) |
|
(0.02 |
) |
||||||||
Adjusted net income per share (non-GAAP)(4) |
$ |
1.09 |
|
$ |
0.88 |
|
$ |
1.82 |
|
$ |
1.50 |
|
(1) A detailed breakdown of impairment of assets and lease termination (income)/expenses recorded in the thirteen and twenty-six weeks ended |
||||||||||||
(2) Represents changes in the fair value of the deferred consideration and contingent consideration and compensation liabilities related to the North Italia and FRC acquisition, as well as amortization of acquired definite-lived licensing agreements. | ||||||||||||
(3) Based on the federal statutory rate and an estimated blended state tax rate, the tax effect on all adjustments assumes a 26% tax rate for the fiscal 2024 and 2023 periods. | ||||||||||||
(4) Adjusted net income per share may not add due to rounding. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240731651443/en/
(818) 871-3000
investorrelations@thecheesecakefactory.com
Source: