The Cheesecake Factory: reports results for Q4/2009

Calabas Hills / CA. (cf) The Cheesecake Factory reported financial results for the fourth quarter of fiscal 2009, which ended on December 29, 2009. Total revenues were 400,6 million USD in the fourth quarter of fiscal 2009 as compared to 400,4 million USD in the prior year fourth quarter. Net income and diluted net income per share were impacted by certain charges recorded in the fourth quarter of fiscal 2009, resulting in a net loss and diluted net loss per share of 13’000 USD and 0,00 USD, respectively.

In accordance with accounting rules, the Company recorded pre-tax, non-cash charges of 26,5 million USD related to the impairment of four Grand Lux Cafe restaurants in the fourth quarter of fiscal 2009. All of the Grand Lux Cafe locations remain open. In addition, the Company made a 2,2 million USD, pre-tax payment to unwind an interest rate collar in conjunction with a 50 million USD repayment on its revolving credit facility. Collectively, these items reduced reported diluted net income per share by approximately 0,28 USD. Excluding these items, net income was 17,2 million USD and diluted net income per share was 0,28 USD.

Operating Results

Comparable restaurant sales decreased 0,9 percent in the fourth quarter of fiscal 2009 from the fourth quarter of the prior year. By concept, comparable restaurant sales decreased 0,7 percent and 3,9 percent at The Cheesecake Factory and Grand Lux Cafe, respectively, in the fourth quarter of fiscal 2009 from the fourth quarter of the previous year.

«We delivered measurable results against each of our objectives in 2009», said David Overton, Chairman and CEO. «Our menu innovation and unwavering focus on the guest experience contributed to a steady improvement in guest satisfaction scores throughout the year. This, in turn, played a key role in driving our four consecutive quarters of improving comparable restaurant sales, which reflected stronger performance than the casual dining industry as a whole. On the financial side, we exceeded all of our principal goals. We realized cost savings of 27 million USD during the year through cost management initiatives that carefully balanced operational efficiency with guest service. We also reduced our debt by 175 million USD and generated free cash flow of 160 million USD in 2009. Our team demonstrated tremendous focus during a very tough year and we exited the year stronger as a result of it», concluded Overton.

Debt Repayment

During the fourth quarter of fiscal 2009, the Company reduced the balance on its revolving credit facility by 50 million USD. The current outstanding balance on the Company´s revolving credit facility is 100 million USD.