The Cheesecake Factory Reports Results for Fourth Quarter of Fiscal 2023
Total revenues were
The Company recorded a pre-tax net expense of
Comparable restaurant sales at
“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
“During the quarter we opened nine new restaurants to strong consumer demand, and on the international front two
Development
During the fourth quarter of fiscal 2023, the Company opened nine new restaurants, including three
Liquidity and Capital Allocation
As of
The Company repurchased approximately 318,400 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 fourth quarter of fiscal 2023 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 strength and resilience of the Company’s brand, ability to capture market share, operational execution to support profitability, customer demand, accelerating unit growth, achievement of development objectives, profitable growth and shareholder value. 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) | ||||||||||||||||||||||||||||
Consolidated Statements of Income/(Loss) |
13 Weeks Ended
|
14 Weeks Ended
|
52 Weeks Ended
|
53 Weeks Ended
|
||||||||||||||||||||||||
Amount |
Percent of
|
Amount |
Percent of
|
Amount |
Percent of
|
Amount |
Percent of
|
|||||||||||||||||||||
Revenues |
$ |
877,009 |
|
100.0 |
% |
$ |
892,802 |
|
100.0 |
% |
$ |
3,439,503 |
|
100.0 |
% |
$ |
3,303,156 |
|
100.0 |
% |
||||||||
Costs and expenses: | ||||||||||||||||||||||||||||
Food and beverage cost |
|
201,449 |
|
23.0 |
% |
|
220,469 |
|
24.7 |
% |
|
803,500 |
|
23.4 |
% |
|
810,926 |
|
24.6 |
% |
||||||||
Labor expenses |
|
308,555 |
|
35.2 |
% |
|
318,629 |
|
35.7 |
% |
|
1,227,895 |
|
35.7 |
% |
|
1,211,951 |
|
36.7 |
% |
||||||||
Other operating costs and expenses |
|
234,969 |
|
26.8 |
% |
|
237,783 |
|
26.6 |
% |
|
922,428 |
|
26.8 |
% |
|
881,627 |
|
26.7 |
% |
||||||||
General and administrative expenses |
|
54,683 |
|
6.2 |
% |
|
56,115 |
|
6.3 |
% |
|
217,449 |
|
6.3 |
% |
|
205,753 |
|
6.2 |
% |
||||||||
Depreciation and amortization expenses |
|
24,012 |
|
2.7 |
% |
|
25,616 |
|
2.9 |
% |
|
93,136 |
|
2.7 |
% |
|
92,380 |
|
2.8 |
% |
||||||||
Impairment of assets and lease termination expenses |
|
27,827 |
|
3.2 |
% |
|
31,074 |
|
3.5 |
% |
|
29,464 |
|
0.9 |
% |
|
31,387 |
|
1.0 |
% |
||||||||
Acquisition-related contingent consideration, compensation and amortization expenses |
|
7,796 |
|
0.9 |
% |
|
10,448 |
|
1.2 |
% |
|
11,686 |
|
0.3 |
% |
|
13,368 |
|
0.4 |
% |
||||||||
Preopening costs |
|
9,579 |
|
1.1 |
% |
|
7,791 |
|
0.8 |
% |
|
25,379 |
|
0.7 |
% |
|
16,829 |
|
0.4 |
% |
||||||||
Total costs and expenses |
|
868,870 |
|
99.1 |
% |
|
907,925 |
|
101.7 |
% |
|
3,330,937 |
|
96.8 |
% |
|
3,264,221 |
|
98.8 |
% |
||||||||
Income/(loss) from operations |
|
8,139 |
|
0.9 |
% |
|
(15,123 |
) |
(1.7 |
)% |
|
108,566 |
|
3.2 |
% |
|
38,935 |
|
1.2 |
% |
||||||||
Interest and other expense, net |
|
(2,483 |
) |
(0.3 |
)% |
|
(2,137 |
) |
(0.2 |
)% |
|
(8,552 |
) |
(0.3 |
)% |
|
(6,043 |
) |
(0.2 |
)% |
||||||||
Income/(loss) before income taxes |
|
5,656 |
|
0.6 |
% |
|
(17,260 |
) |
(1.9 |
)% |
|
100,014 |
|
2.9 |
% |
|
32,892 |
|
1.0 |
% |
||||||||
Income tax benefit |
|
(7,025 |
) |
(0.8 |
)% |
|
(13,962 |
) |
(1.5 |
)% |
|
(1,337 |
) |
(0.0 |
)% |
|
(10,231 |
) |
(0.3 |
)% |
||||||||
Net income/(loss) |
$ |
12,681 |
|
1.4 |
% |
$ |
(3,298 |
) |
(0.4 |
)% |
$ |
101,351 |
|
2.9 |
% |
$ |
43,123 |
|
1.3 |
% |
||||||||
Basic net income/(loss) per share |
$ |
0.27 |
|
$ |
(0.07 |
) |
$ |
2.10 |
|
$ |
0.87 |
|
||||||||||||||||
Basic weighted average shares outstanding |
|
47,828 |
|
|
48,951 |
|
|
48,324 |
|
|
49,815 |
|
||||||||||||||||
Diluted net income/(loss) per share |
$ |
0.26 |
|
$ |
(0.07 |
) |
$ |
2.07 |
|
$ |
0.86 |
|
||||||||||||||||
Diluted weighted average shares outstanding |
|
48,609 |
|
|
48,951 |
|
|
49,050 |
|
|
50,414 |
|
Selected Segment Information |
13 Weeks Ended |
14 Weeks Ended |
52 Weeks Ended |
53 Weeks Ended |
||||||||||||||
Revenues: | ||||||||||||||||||
|
$ |
658,445 |
|
$ |
674,467 |
|
$ |
2,595,066 |
|
$ |
2,528,043 |
|
||||||
North Italia |
|
67,224 |
|
|
65,514 |
|
|
258,878 |
|
|
228,622 |
|
||||||
Other FRC |
|
70,913 |
|
|
66,507 |
|
|
263,923 |
|
|
237,552 |
|
||||||
Other |
|
80,427 |
|
|
86,314 |
|
|
321,636 |
|
|
308,939 |
|
||||||
Total |
$ |
877,009 |
|
$ |
892,802 |
|
$ |
3,439,503 |
|
$ |
3,303,156 |
|
||||||
Income/(loss) from operations: | ||||||||||||||||||
|
$ |
65,363 |
|
$ |
50,872 |
|
$ |
297,063 |
|
$ |
220,765 |
|
||||||
North Italia |
|
3,201 |
|
|
3,553 |
|
|
18,515 |
|
|
13,934 |
|
||||||
Other FRC |
|
3,596 |
|
|
5,346 |
|
|
19,422 |
|
|
23,577 |
|
||||||
Other |
|
(64,021 |
) |
|
(74,894 |
) |
|
(226,434 |
) |
|
(219,341 |
) |
||||||
Total |
$ |
8,139 |
|
$ |
(15,123 |
) |
$ |
108,566 |
|
$ |
38,935 |
|
||||||
Depreciation and amortization expenses: | ||||||||||||||||||
|
$ |
16,251 |
|
$ |
18,803 |
|
$ |
64,206 |
|
$ |
66,539 |
|
||||||
North Italia |
|
1,694 |
|
|
1,638 |
|
|
6,407 |
|
|
5,714 |
|
||||||
Other FRC |
|
2,289 |
|
|
1,519 |
|
|
7,916 |
|
|
6,231 |
|
||||||
Other |
|
3,778 |
|
|
3,656 |
|
|
14,607 |
|
|
13,896 |
|
||||||
Total |
$ |
24,012 |
|
$ |
25,616 |
|
$ |
93,136 |
|
$ |
92,380 |
|
||||||
Impairment of assets and lease termination expenses: | ||||||||||||||||||
|
$ |
20,241 |
|
$ |
19,760 |
|
$ |
20,401 |
|
$ |
19,701 |
|
||||||
North Italia |
|
1,015 |
|
|
- |
|
|
1,015 |
|
|
- |
|
||||||
Other FRC |
|
2,527 |
|
|
3,909 |
|
|
2,582 |
|
|
3,909 |
|
||||||
Other |
|
4,044 |
|
|
7,405 |
|
|
5,466 |
|
|
7,777 |
|
||||||
Total |
$ |
27,827 |
|
$ |
31,074 |
|
$ |
29,464 |
|
$ |
31,387 |
|
||||||
Preopening costs: | ||||||||||||||||||
|
$ |
4,457 |
|
$ |
4,362 |
|
$ |
12,857 |
|
$ |
9,525 |
|
||||||
North Italia |
|
2,926 |
|
|
1,550 |
|
|
5,058 |
|
|
4,305 |
|
||||||
Other FRC |
|
1,998 |
|
|
1,004 |
|
|
6,482 |
|
|
1,361 |
|
||||||
Other |
|
198 |
|
|
875 |
|
|
982 |
|
|
1,638 |
|
||||||
Total |
$ |
9,579 |
|
$ |
7,791 |
|
$ |
25,379 |
|
$ |
16,829 |
|
||||||
|
13 Weeks Ended |
14 Weeks Ended |
52 Weeks Ended |
53 Weeks Ended |
||||||||||||||
Comparable restaurant sales vs. prior year |
|
2.5 |
% |
|
4.0 |
% |
|
3.0 |
% |
|
7.0 |
% |
||||||
Comparable restaurant sales vs. 2019 |
|
14.0 |
% |
|
11.4 |
% |
|
13.9 |
% |
|
10.5 |
% |
||||||
Restaurants opened during period |
|
3 |
|
|
2 |
|
|
6 |
|
|
3 |
|
||||||
Restaurants open at period-end |
|
216 |
|
|
211 |
|
|
216 |
|
|
211 |
|
||||||
Restaurant operating weeks |
|
2,783 |
|
|
2,939 |
|
|
11,010 |
|
|
11,052 |
|
||||||
North Italia operating information: | ||||||||||||||||||
Comparable restaurant sales vs. prior year |
|
7 |
% |
|
9 |
% |
|
8 |
% |
|
15 |
% |
||||||
Comparable restaurant sales vs. 2019 |
|
34 |
% |
|
26 |
% |
|
31 |
% |
|
22 |
% |
||||||
Restaurants opened during period |
|
3 |
|
|
2 |
|
|
3 |
|
|
4 |
|
||||||
Restaurants open at period-end |
|
36 |
|
|
33 |
|
|
36 |
|
|
33 |
|
||||||
Restaurant operating weeks |
|
442 |
|
|
454 |
|
|
1,729 |
|
|
1,604 |
|
||||||
Other |
||||||||||||||||||
Restaurants opened during period |
|
3 |
|
|
2 |
|
|
6 |
|
|
3 |
|
||||||
Restaurants open at period-end |
|
40 |
|
|
34 |
|
|
40 |
|
|
34 |
|
||||||
Restaurant operating weeks |
|
512 |
|
|
462 |
|
|
1,906 |
|
|
1,681 |
|
||||||
Other operating information:(2) | ||||||||||||||||||
Restaurants opened during period |
|
- |
|
|
2 |
|
|
1 |
|
|
3 |
|
||||||
Restaurants open at period-end |
|
39 |
|
|
40 |
|
|
39 |
|
|
40 |
|
||||||
Restaurant operating weeks |
|
519 |
|
|
558 |
|
|
2,074 |
|
|
2,072 |
|
||||||
Number of company-owned restaurants: | ||||||||||||||||||
|
|
216 |
|
|||||||||||||||
North Italia |
|
36 |
|
|||||||||||||||
Other FRC |
|
40 |
|
|||||||||||||||
Other |
|
39 |
|
|||||||||||||||
Total |
|
331 |
|
|||||||||||||||
Number of international-licensed restaurants: | ||||||||||||||||||
|
|
32 |
|
|||||||||||||||
(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 | $ |
|
56,290 |
|
$ |
|
114,777 |
|
||||||||||
Long-term debt, net of issuance costs (1) |
|
470,047 |
|
|
468,032 |
|
||||||||||||
(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 |
14 Weeks Ended |
52 Weeks Ended |
53 Weeks Ended |
|||||||||||||
Net income/(loss) (GAAP) |
$ |
12,681 |
|
$ |
(3,298 |
) |
$ |
101,351 |
|
$ |
43,123 |
|
||||
Impairment of assets and lease termination expenses(1) |
|
27,827 |
|
|
31,074 |
|
|
29,464 |
|
|
31,387 |
|
||||
Acquisition-related contingent consideration, compensation and amortization expenses(2) |
|
7,796 |
|
|
10,448 |
|
|
11,686 |
|
|
13,368 |
|
||||
Tax effect of adjustments(3) |
|
(9,262 |
) |
|
(10,795 |
) |
|
(10,699 |
) |
|
(11,637 |
) |
||||
Adjusted net income (non-GAAP) |
$ |
39,042 |
|
$ |
27,429 |
|
$ |
131,802 |
|
$ |
76,241 |
|
||||
Diluted net income/(loss) per share (GAAP) |
$ |
0.26 |
|
$ |
(0.07 |
) |
$ |
2.07 |
|
$ |
0.86 |
|
||||
Impairment of assets and lease termination expenses |
|
0.57 |
|
|
0.63 |
|
|
0.61 |
|
|
0.62 |
|
||||
Acquisition-related contingent consideration, compensation and amortization expenses |
|
0.16 |
|
|
0.21 |
|
|
0.24 |
|
|
0.27 |
|
||||
Tax effect of adjustments |
|
(0.19 |
) |
|
(0.22 |
) |
|
(0.22 |
) |
|
(0.23 |
) |
||||
Adjusted net income per share (non-GAAP)(4) |
$ |
0.80 |
|
$ |
0.56 |
|
$ |
2.69 |
|
$ |
1.51 |
|
||||
(1) A detailed breakdown of impairment of assets and lease termination expenses recorded in the thirteen and fifty-two 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 2023 and 2022 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/20240221813908/en/
(818) 871-3000
investorrelations@thecheesecakefactory.com
Source: