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The Cheesecake Factory Reports Results for First Quarter of Fiscal 2016

CALABASAS HILLS, Calif., Apr 27, 2016 (BUSINESS WIRE) -- The Cheesecake Factory Incorporated CAKE, -0.33% today reported financial results for the first quarter of fiscal 2016, which ended on March 29, 2016.

Total revenues were $553.7 million in the first quarter of fiscal 2016 as compared to $518.0 million in the prior year first quarter. Net income and diluted net income per share were $34.0 million and $0.68, respectively, in the first quarter of fiscal 2016.

Operating Results

Comparable restaurant sales at The Cheesecake Factory restaurants increased 1.7% in the first quarter of fiscal 2016.

“We effectively kicked off 2016 with another quarter of positive comparable sales, our 25 [th] in a row. Consistent and predictable performance is a hallmark of The Cheesecake Factory and is representative of the highly differentiated guest experience our operations team delivers every day. Our share of wallet continues to increase as we delivered dependable competitive performance and again outpaced the casual dining industry,” said David Overton, Chairman and Chief Executive Officer.

“Operational excellence and the sustained demand for our brand, as illustrated by our recent recognition as the No. 1 casual dining concept in Nation’s Restaurant News’ Consumer Picks Survey, both contributed to our strong start to the year. With solid overall sales growth and effective management of our expenses throughout the income statement, we captured measurable gains in operating margins and earnings per share. Our returns-focused growth demonstrates our commitment to increase shareholder value,” concluded Overton.

Development

The Company continues to expect to open as many as eight Company-owned restaurants domestically in fiscal 2016. The first Company-owned restaurant opened in Albuquerque, New Mexico in February and the next location is expected to open in the second quarter of this year.

Internationally, the Company is still expecting as many as four to five restaurants to open under licensing agreements in fiscal 2016. This includes the first The Cheesecake Factory in China, which is scheduled to open mid year in Disneytown, part of the Shanghai Disney resort.

Capital Allocation

The Company’s Board of Directors declared a quarterly cash dividend of $0.20 per share on the Company’s common stock. The dividend is payable on May 24, 2016 to shareholders of record at the close of business on May 11, 2016.

During the first quarter of fiscal 2016, the Company repurchased 1.0 million shares of its common stock at a cost of $50.0 million. The Company continues to expect that it will return its free cash flow to shareholders in fiscal 2016 in the form of dividends and share repurchases.

Conference Call and Webcast

The Company will hold a conference call to review its results for the first quarter of fiscal 2016 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 May 26, 2016.

About The Cheesecake Factory Incorporated

The Cheesecake Factory Incorporated created the upscale casual dining...


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