:. Food Industry News

Categories: Corporate Results

Cheesecake Factory Profit Down

Source: Reuters
25/04/2008

Los Angeles, Apr. 24 - The Cheesecake Factory Inc posted lower quarterly results Thursday as bad weather worsened a decline in sales at established restaurants.

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The Calabasas Hills, California-based company had first-quarter net income of $14.3 million, or 21 cents per share, matching the average of analysts' estimates compiled by Reuters Estimates. Year-earlier net income was $18.4 million, or 24 cents per share.

Revenue rose 10 percent to $393.8 million from $356.6 million a year ago.

Sales at restaurants open at least 18 months fell 1.8 percent in the quarter, as inclement weather lowered results by about $1.6 million. Excluding the impact of bad weather, the company said comparable restaurant sales would been down about 1.2 percent.

Cheesecake Factory and other restaurant operators have been hurt by high costs for foodstuffs like bread, meat and dairy products and a weak economy that has consumers cutting back on extras such as eating out.

The company, which bought back about 2.2 million shares of common stock during the quarter, said it continues to expect to open between seven and nine new restaurants in fiscal 2008 -- including six to eight new Cheesecake Factory restaurants and the initial unit of its newest restaurant concept, RockSugar Pan Asian Kitchen.

Cheesecake Factory shares rose 13 cents to $21.70 in extended trade, after closing down nine cents at $21.57 on Nasdaq.



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