Exhibit 99.1
The Cheesecake Factory Reports Record Financial Results
for the Fiscal Quarter Ended April 1, 2003
CALABASAS HILLS, Calif.--(BUSINESS WIRE)--April 21, 2003--The
Cheesecake Factory Incorporated (Nasdaq: CAKE) today reported record
net income and diluted net income per share for the fiscal quarter
ended April 1, 2003. Compared to the same quarter last year, net
income and diluted net income per share increased 20% and 19%,
respectively, to $12.6 million and $0.25.
"For the first quarter of fiscal 2003, our Company achieved strong
increases in net income and diluted net income per share in spite of
severe winter weather that affected the majority of our restaurants
during February and March," said David Overton, Chairman and CEO. "We
experienced the President's Day blizzard on the East Coast; ice storms
in Texas; heavy rains in California; and the unexpected blizzard in
Colorado. We estimate that total restaurant sales were impacted by
$2.5 - $2.9 million during the quarter due to weather, coupled with
the shift in Easter and associated spring break schedules from the
first quarter last year to the second quarter this year. As a direct
result, our comparable restaurant sales decreased by approximately 2%
during the quarter. Had we not experienced the sales impact from these
factors, our comparable restaurant sales would have been up slightly
for the quarter. It is important to remember that, unlike most
national restaurant chains, we do not rely on media advertising or
discounting to drive short-term sales increases for our upscale casual
dining concepts. Instead, we rely on our 25-year reputation with
consumers for excellence in food, service, ambiance and value to
sustain our industry-leading sales productivity metrics. We believe
this is the best long-term competitive strategy for our concepts.
"We reiterate our goal to open as many as 14 new Cheesecake
Factory restaurants during fiscal 2003," said Overton. Two restaurants
were opened during the first quarter (Edison, NJ and Littleton, CO).
During the second quarter, two more restaurants are planned to open
(Nyack, NY in mid-May and Overland Park, KS in late June). Five
restaurants are planned for openings during the latter half of the
third quarter, and five restaurants are planned for openings during
the first half of the fourth quarter. "Due to the nature of the leased
spaces that we select for our upscale restaurants and their highly
customized layouts, it is not easy to predict, by quarter, the exact
timing of our restaurant openings and their associated preopening
costs," commented Overton. "Having said that, we remain committed to
achieving our full-year restaurant growth plan for 2003."
During the first quarter, sales continued to build at all three of
the Company's Grand Lux Cafe restaurants. "Sales averaged over
$400,000 per week during the quarter for our Grand Lux Cafe located at
the Venetian in Las Vegas," said Overton. "Average weekly sales for
our second Grand Lux Cafe in Los Angeles were up 10% during the
quarter, and sales for our third Grand Lux Cafe in downtown Chicago
are now annualizing over $10 million. We are continuing to fine-tune
our menu and operating systems to prepare the concept for future
expansion."
Bakery sales to other foodservice operators, retailers and
distributors were $7.7 million for the quarter ended April 1, 2003
compared to a record-setting $12.6 million reported for the same
quarter last year which, in turn, was up 54% compared to the first
quarter of fiscal 2001. "We previously commented that bakery sales for
the first half of fiscal 2003 were expected to be less than the same
period last year due to a very difficult comparison," said Overton.
During the first quarter last year, bakery sales were unusually high
as a result of the initial inventory pipeline fills for new
relationships with the largest warehouse club operator and a national
retailer. "So far this year, shipments to our large bakery customers
have been tracking less than we originally expected," commented
Overton. "However, we currently expect our absolute bakery sales to
sequentially increase to the $10 million range for the upcoming second
quarter, primarily driven by our expanded relationship with SYSCO
Corporation that we announced in February this year. Initial sales of
The Dream Factory(R) and SYSCO Supreme(R) products to SYSCO are in
line with our expectations. We expect sales to SYSCO to gradually
increase during the remainder of the year."
For planning purposes and to allow additional time for the Company
to comply with the new reporting and disclosure regulations for public
companies, the Company currently plans to release its quarterly
results and hold its investor conference calls for the next two
quarters on the following dates:
Quarter Ending Release Date & Time Conference Call
Date & Time
- ----------------------------------------------------------------------
July 1, 2003 July 22, 2003 - 4:15 PM Eastern July 22, 2003 -
5:00 PM Eastern
Sept. 30, 2003 Oct. 21, 2003 - 4:15 PM Eastern Oct. 21, 2003 -
5:00 PM Eastern
The investor conference calls will be broadcast live over the
Internet at www.thecheesecakefactory.com. Listeners should select the
"Audio Webcasts" option under the "Investor" section of the Company's
website. An archived webcast will also be available.
The Cheesecake Factory Incorporated operates 61 upscale, casual
dining restaurants under The Cheesecake Factory(R) name that offer an
extensive menu of more than 200 items with an average check of
approximately $15.78. The Company also operates a bakery production
facility that produces over 50 varieties of quality cheesecakes and
other baked products for the Company's restaurants and for other
leading foodservice operators, retailers and distributors.
Additionally, the Company operates three upscale casual dining
restaurants under the Grand Lux Cafe(R) name in Los Angeles, Chicago
and Las Vegas; one self-service, limited menu "express" foodservice
operation under The Cheesecake Factory Express(R) mark inside the
DisneyQuest(R) family entertainment center in Orlando, Florida; and
licenses three bakery cafe outlets to another foodservice operator
under The Cheesecake Factory Bakery Cafe(R) name.
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause the actual results,
performance or achievements of the Company to be materially different
from any future results, performance or achievements expressed or
implied by forward-looking statements. Investors are cautioned that
forward-looking statements are not guarantees of future performance
and that undue reliance should not be placed on such statements. In
particular, forward-looking statements regarding the Company's
restaurant sales trends are subject to risks and uncertainties due to
national and regional economic and public safety conditions that
impact consumer confidence and spending, as well as weather and other
factors outside of the Company's control. Forward-looking statements
regarding the number and timing of the Company's planned new
restaurant openings are subject to risks and uncertainties due to
factors outside of the Company's control, including factors that are
under the control of government agencies, landlords and others.
Forward-looking statements regarding bakery sales are subject to a
number of risks and uncertainties, including (but not limited to) the
purchasing plans of the Company's large-account bakery customers and
the Company's ability to obtain and retain such customers.
Forward-looking statements speak only as of the dates on which they
were made. The Company undertakes no obligation to publicly update or
revise any forward-looking statements or to make any other
forward-looking statements, whether as a result of new information,
future events or otherwise unless required to do so by the securities
laws. Investors are referred to the full discussion of risks and
uncertainties associated with forward-looking statements contained in
the Company's filings with the Securities and Exchange Commission.
The Cheesecake Factory Incorporated and Subsidiaries
Consolidated Financial Statements
(unaudited; in thousands, except per share and statistical data)
13 Weeks Ended 13 Weeks Ended
Consolidated Statements of April 1, 2003 April 2, 2002
Operations
- -------------------------------- ------------------ ------------------
Revenues: Amounts Percents Amounts Percents
--------- -------- --------- --------
Restaurant sales $165,176 95.6% $137,637 91.6%
Bakery sales to other
foodservice
operators, retailers and
distributors 7,684 4.4% 12,597 8.4%
--------- -------- --------- --------
Total revenues 172,860 100.0% 150,234 100.0%
--------- -------- --------- --------
Costs and expenses:
Restaurant cost of sales (1) 38,845 22.5% 33,420 22.3%
Bakery cost of sales (2) 3,638 2.1% 6,081 4.1%
Labor expenses 55,844 32.3% 46,262 30.8%
Other operating expenses 39,777 23.0% 34,025 22.6%
General and administrative
expenses 8,686 5.0% 7,559 5.0%
Depreciation and amortization
expenses 6,546 3.8% 5,179 3.4%
Preopening costs 1,518 0.9% 2,686 1.8%
--------- -------- --------- --------
Total costs and expenses 154,854 89.6% 135,212 90.0%
--------- -------- --------- --------
Income from operations 18,006 10.4% 15,022 10.0%
Interest income, net 857 0.5% 996 0.6%
Other income, net 794 0.5% 411 0.3%
--------- -------- --------- --------
Income before income taxes 19,657 11.4% 16,429 10.9%
Income tax provision 7,018 4.1% 5,865 3.9%
--------- -------- --------- --------
Net income $12,639 7.3% $10,564 7.0%
========= ======== ========= ========
Basic net income per share $0.25 $0.22
========= =========
Basic weighted average shares
outstanding 50,032 48,249
========= =========
Diluted net income per share $0.25 $0.21
========= =========
Diluted weighted average shares
outstanding 51,412 50,699
========= =========
Notes:
- -------------------------------
(1) Consists of restaurant food, beverage and dessert costs.
(2) Consists of ingredient, packaging and supply costs.
Selected Consolidated Balance April 1, 2003 December 31, 2002
Sheet Information
- -------------------------------- ------------------ ------------------
Cash and cash equivalents $7,297 $11,033
Investments and marketable
securities 117,006 103,453
Total assets 481,122 463,842
Total liabilities 87,858 84,278
Stockholders' equity 393,264 379,564
13 Weeks Ended 13 Weeks Ended
Supplemental Statistics April 1, 2003 April 2, 2002
- -------------------------------- ------------------ ------------------
Comparable restaurant sales %
change -2.0% 2.1%
Restaurant cost of sales % of
restaurant sales 23.5% 24.3%
Bakery cost of sales % of bakery
sales 47.3% 48.3%
Restaurants opened during period 2 3
Restaurants open at period-end 65 54
Restaurant operating weeks 835 677
CONTACT: The Cheesecake Factory Incorporated, Calabasas Hills
Jane Vallaire, 818/871-3000