Calabas Hills / CA. (cf) The Cheesecake Factory Incorporated reported financial results for the third quarter of fiscal 2018, which ended on October 02, 2018.
Total revenues were USD 580.9 million in the third quarter of fiscal 2018 compared to USD 555.4 million in the third quarter of fiscal 2017. Net income and diluted net income per share were USD 28.5 million and USD 0.61, respectively, in the third quarter of fiscal 2018.
The Company recorded a pre-tax charge of USD 0.3 million during the third quarter of fiscal 2018 related to the previously disclosed termination of a lease for one The Cheesecake Factory restaurant. Excluding the after-tax impact from this item, net income and diluted net income per share for the third quarter of fiscal 2018 would have been USD 28.7 million and USD 0.62, respectively. Please see the Company’s reconciliation of non-GAAP financial measures at the end of this release.
Comparable restaurant sales at The Cheesecake Factory restaurants increased 1.5 percent in the third quarter of fiscal 2018.
«Our operators executed on our objectives, wage inflation moderated from the second quarter and group medical insurance costs normalized,» said David Overton, Chairman and Chief Executive Officer. «These factors, coupled with comparable sales performance at The Cheesecake Factory restaurants within our expectations, drove solid profitability during the third quarter.»
Overton continued, «As 2018 comes to a close, we will open our 200th Cheesecake Factory restaurant next month. This milestone will cap our 40th year of delivering on our mission of absolute guest satisfaction. We look forward to continuing our culture of excellence by providing our guests with great dining experiences, offering growth opportunities for our staff members and maximizing long term value for our shareholders.»
Development
The Company now expects to open five restaurants in fiscal 2018. This includes The Cheesecake Factory in Lynnwood, Washington, a suburb of Seattle, and Grand Lux Cafe in Atlanta, which both opened during the third quarter of 2018. The Company expects to open three additional Cheesecake Factory restaurants during the fourth quarter of 2018. The first location of Social Monk Asian Kitchen, a fast casual concept under development, is now expected to open in the first quarter of 2019.
Given a shift in the mall opening date, the Company now expects The Cheesecake Factory licensed location in Monterrey, Mexico to open in the first quarter of 2019. As a result, the anticipated international development for fiscal 2018 is complete, with two restaurants opened internationally under licensing agreements this year.
Capital Allocation
The Company’s Board of Directors declared a quarterly cash dividend of USD 0.33 per share of the Company’s common stock. The dividend is payable on November 27, 2018 to shareholders of record at the close of business on November 14, 2018.
During the third quarter of fiscal 2018, the Company repurchased approximately 370,000 shares of its common stock at a cost of USD 18.9 million. Year to date, the Company has repurchased approximately 1.2 million shares of its common stock at a cost of USD 60.9 million.
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