Cheesecake Factory: Reports Q3-2024 Financial Results

Calabas Hills / CA. (cf) The Cheesecake Factory Incorporated reported financial results for the third quarter of fiscal 2024, which ended on October 01, 2024.

Total revenues were USD 865.5 million in the third quarter of fiscal 2024 compared to USD 830.2 million in the third quarter of fiscal 2023. Net income and diluted net income per share were USD 30.0 million and USD 0.61, respectively, in the third quarter of fiscal 2024.

The Company recorded pre-tax net income of USD 2.5 million related to impairment of assets and lease termination income and Fox Restaurant Concepts (FRC) acquisition-related expenses. Excluding the after-tax impact of these items, adjusted net income and adjusted net income per share for the third quarter of fiscal 2024 were USD 28.2 million and USD 0.58, respectively. Please see the Company’s reconciliation of non-GAAP financial measures at the end of this press release.

Comparable restaurant sales at The Cheesecake Factory restaurants increased 1.6 percent year-over-year in the third quarter of fiscal 2024.

«The third quarter was our fourth consecutive quarter of year-over-year top- and bottom-line growth, reflecting our strong operational execution, the benefits of our scale, and the delicious, memorable experiences we offer across our restaurant concepts,» said David Overton, Chairman and Chief Executive Officer. «We are capturing market share as evidenced by the continued strong outperformance in comparable sales and traffic at The Cheesecake Factory restaurants versus the broader casual dining industry. Execution within our restaurants was exceptional with our operators delivering significant improvements in labor productivity, hourly staff and manager retention, and guest satisfaction scores.»

«We opened four new restaurants during the third quarter and, subsequent to quarter-end, opened three additional restaurants across various concepts for a total of 17 new openings year-to-date. Our ability to execute against our pipeline and successfully expand our restaurant footprint reinforces our confidence in our ability to achieve our near-term and longer-term development objectives. Looking ahead we remain focused on operational excellence, growing profitably and creating long-term, sustainable value into 2025 and beyond.»

Development

During the third quarter of fiscal 2024, the Company opened four new restaurants, including one Flower Child location and three FRC restaurants. Subsequent to quarter-end, the Company opened three new restaurants, including one North Italia, one Flower Child and one Blanco location.

The Company continues to expect to open as many as 22 new restaurants in fiscal 2024, including as many as three The Cheesecake Factory restaurants, six North Italia restaurants, six to seven Flower Child locations, and eight FRC restaurants.

Liquidity and Capital Allocation

As of October 01, 2024, the Company had total available liquidity of USD 288.7 million, including a cash balance of USD 52.2 million and availability on its revolving credit facility of USD 236.5 million. Total principal amount of debt outstanding was USD 475 million, including USD 345 million in principal amount of 0.375 percent convertible senior notes due 2026 and USD 130 million in principal amount drawn on the Company’s revolving credit facility.

The Company repurchased approximately 29,450 shares of its stock at a cost of USD 1.1 million in the third quarter of fiscal 2024. In addition, the Company’s Board of Directors has declared a quarterly dividend of USD 0.27 per share to be paid on November 26, 2024, to shareholders of record at the close of business on November 13, 2024.