Calabas Hills / CA. (cf) The Cheesecake Factory Inc. reported financial results for the second quarter of fiscal 2016, which ended on June 28, 2016. Total revenues were 558.9 million USD in the second quarter of fiscal 2016 as compared to 529.1 million USD in the second quarter of fiscal 2015. Net income and diluted net income per share were 38.6 million USD and 0.78 USD, respectively, in the second quarter of fiscal 2016.
Comparable restaurant sales at The Cheesecake Factory restaurants increased 0.3 percent in the second quarter of fiscal 2016.
«We again outperformed the casual dining industry, delivering our 26th consecutive quarter of positive comparable sales», said David Overton, Chairman and Chief Executive Officer. «Capturing operational efficiencies, coupled with a benign commodity cost environment, enabled us to offset industry wage inflation and drive strong margins and earnings growth during the quarter. In addition, we achieved a significant milestone in our international expansion with the opening of the first The Cheesecake Factory restaurant in China, at Disneytown in the Shanghai Disney Resort, under a licensing agreement».
Overton concluded, «Underscoring our confidence in our industry-leading position and future prospects, we are both expanding our share repurchase authorization and meaningfully increasing our quarterly dividend. We will have doubled the amount of our dividend since first initiating one in fiscal 2012, with this increase. We remain committed to investing in returns-focused growth and returning capital to achieve our targeted returns and increase shareholder value».
Development
The Company continues to expect to open as many as eight Company-owned restaurants domestically in fiscal 2016, the second of which opened in Greenville, South Carolina in the second quarter. Internationally, the Company continues to expect as many as four to five restaurants to open under licensing agreements in fiscal 2016, including the first The Cheesecake Factory restaurant that opened in China in June 2016.
Capital Allocation
The Company’s Board of Directors declared a quarterly cash dividend of 0.24 USD per share on the Company’s common stock, representing a 20 percent increase. The dividend is payable on August 23, 2016 to shareholders of record at the close of business on August 10, 2016. During the second quarter of fiscal 2016, the Company repurchased 0.5 million shares of its common stock at a cost of 26.6 million USD. Year-to-date, the Company repurchased 1.6 million shares of its common stock at a cost of 76.6 million USD. In addition, the Company’s Board of Directors increased its share repurchase authorization by 7.5 million shares to 56.0 million shares. The Company continues to expect that it will return its free cash flow to shareholders in fiscal 2016 in the form of dividends and share repurchases.
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