The Cheesecake Factory: Sandy stunts 4Q sales

Sandy, Nemo take toll

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For the 13 weeks ended Jan. 1, the company reported net income of $22.1 million, or 40 cents per share, compared with $29.9 million, or 54 cents per share, a year ago.

The results reflected a pre-tax charge of $9.5 million related to the planned closure of the Grand Lux units, as well as impairments tied to a Cheesecake Factory restaurant during the quarter, which together decreased earnings per share by about 11 cents. Excluding the charges, net income would have been $27.9 million, or 51 cents per share.

Revenue declined nearly 3 percent to $464.7 million in the fourth quarter, compared with $477.7 million the prior year, which included an extra week.

Same-store sales increased 0.9 percent systemwide — including an increase of 1.3 percent for The Cheesecake Factory and a 3.2-percent drop for Grand Lux. Traffic, however, declined 1 percent.

The company said Superstorm Sandy impacted those results by about 0.6 percent. If not for the weather, same-store sales would have risen 1.5 percent for the quarter systemwide, the company indicated.

For fiscal 2012, the company reported net income of $98.4 million, or $1.78 per share, compared with $95.7 million, or $1.64 per share, the prior year.

Revenue for the year totaled $1.81 billion, a 3-percent increase from $1.75 billion in fiscal 2011, which included an extra week.

For fiscal 2013, the The Cheesecake Factory expects to open eight to 10 new restaurants, and another three are scheduled to open overseas under licensing agreements.

In its outlook for 2013, the company expects same-store sales to be flat to an increase of 1 percent in the first quarter. The blizzard, dubbed Nemo, in the Northeast earlier this month is expected to have about a 1-cent impact on estimated earnings of 40 cents to 43 cents for the quarter.

For the full year, the company expects earnings to be $2.10 to $2.18 with a same-store sales increase of 1.5 percent to 2.5 percent.

In addition to the namesake brand and Grand Lux, The Cheesecake Factory Inc. also owns and operates the one-off concept RockSugar Pan Asian Kitchen in Los Angeles.

Contact Lisa Jennings at lisa.jennings@penton.com
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