Exhibit 99.1
The Cheesecake Factory Reports Record Financial Results
for the Fiscal Quarter Ended March 30, 2004
CALABASAS HILLS, Calif.--(BUSINESS WIRE)--April 20, 2004--The
Cheesecake Factory Incorporated (Nasdaq:CAKE) today reported record
financial results for the fiscal first quarter ended March 30, 2004.
Highlights for the first quarter, compared to the same quarter last
year, were as follows:
-- Total revenues up 28% to $220.5 million
-- Operating income up 36% to $24.5 million
-- Net income up 32% to $16.7 million
-- Diluted net income per share up 28% to $0.32
-- Comparable restaurant sales up 6.1%
-- Average sales per restaurant operating week up 5.1%
"We were very pleased with our record financial results for the
first quarter," said David Overton, Chairman, President and CEO. "The
more normal weather conditions compared to the prior year are
reflected in our 6.1% increase in comparable restaurant sales, our
largest quarterly increase in comparable restaurant sales since 1998.
In addition, we achieved record operating income results despite a
very difficult commodity cost environment. This is a strong testament
to our management team who did a commendable job in controlling costs
in other areas to help offset the food cost pressures.
"Our goal is to open as many as 16 restaurants in the current
year, including two Grand Lux Cafes," stated Overton. Two new
Cheesecake Factory restaurants were opened during the first quarter
(Birmingham, AL and Cincinnati, OH). Two additional Cheesecake Factory
restaurants are currently scheduled to open late in the second quarter
(Sacramento, CA and Alpharetta, GA). Seven restaurant openings are
currently planned for the second half of the third quarter and five
openings are currently scheduled for the fourth quarter. "As most of
our investors know, it is not easy to predict, by quarter, the exact
timing of our restaurant openings and their associated preopening
costs due to the nature of the leased spaces that we select for our
upscale restaurants and their highly customized layouts," commented
Overton. "Having said that, we remain confident in our ability to
achieve our full-year restaurant growth plan for 2004 based on those
factors within our control."
Sales for the Company's three Grand Lux Cafe locations in Las
Vegas, Los Angeles and Chicago were up 19% during the first quarter
compared to the same period last year. "We continue to be very excited
with the steady increase in Grand Lux Cafe sales and look forward to
opening Grand Lux Cafes in Dallas and Houston during fiscal 2004,"
commented Overton. "Our objective with Grand Lux Cafe is to have a
second growth vehicle ready when needed, with an excellent ROI
profile. We believe that we are well on our way to achieving this
objective."
Bakery sales to other foodservice operators, retailers and
distributors increased 21% to $9.3 million during the first quarter,
compared to the same quarter last year. Sales continue to steadily
build for The Dream Factory(R) and SYSCO Supreme(TM) product lines and
other premium dessert products with foodservice distributors and
retailers.
The Cheesecake Factory Incorporated operates 75 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 $16.09. 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, and the amount and timing of their associated
preopening costs, 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)
unforeseen changes in the purchasing plans of the Company's
large-account bakery customers and inherent difficulties in predicting
the timing of product orders and shipments. 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 March 30, 2004 April 1, 2003
Operations
- ---------------------------------- ----------------- -----------------
Revenues: Amounts Percents Amounts Percents
----------------- -----------------
Restaurant sales $211,216 95.8% $165,176 95.6%
Bakery sales to other
foodservice
operators, retailers and
distributors 9,318 4.2% 7,684 4.4%
----------------- -----------------
Total revenues 220,534 100.0% 172,860 100.0%
----------------- -----------------
Costs and expenses:
Restaurant cost of sales (1) 52,510 23.8% 38,845 22.5%
Bakery cost of sales (2) 4,556 2.1% 3,638 2.1%
Labor expenses 69,038 31.3% 55,844 32.3%
Other operating expenses 49,990 22.7% 39,777 23.0%
General and administrative
expenses 9,770 4.4% 8,686 5.0%
Depreciation and amortization
expenses 8,187 3.7% 6,546 3.8%
Preopening costs 2,021 0.9% 1,518 0.9%
----------------- -----------------
Total costs and expenses 196,072 88.9% 154,854 89.6%
----------------- -----------------
Income from operations 24,462 11.1% 18,006 10.4%
Interest income, net 620 0.3% 857 0.5%
Other income, net 581 0.3% 794 0.5%
----------------- -----------------
Income before income taxes 25,663 11.7% 19,657 11.4%
Income tax provision 9,008 4.1% 7,018 4.1%
----------------- -----------------
Net income $16,655 7.6% $12,639 7.3%
================= =================
Basic net income per share $0.32 $0.25
========= =========
Basic weighted average shares
outstanding 51,398 50,032
========= =========
Diluted net income per share $0.32 $0.25
========= =========
Diluted weighted average shares
outstanding 52,858 51,412
========= =========
Notes:
- ---------------------------------
(1) Consists of restaurant food, beverage and dessert costs.
(2) Consists of ingredient, packaging and supply costs.
Selected Consolidated Balance March 30, 2004 December 30, 2003
Sheet Information
- ---------------------------------- ----------------- -----------------
Cash and cash equivalents $63,641 $15,167
Investments and marketable
securities 94,233 121,840
Total assets 611,018 584,808
Total liabilities 116,700 126,906
Stockholders' equity 494,318 457,902
13 Weeks Ended 13 Weeks Ended
Supplemental Statistics March 30, 2004 April 1, 2003
- ---------------------------------- ----------------- -----------------
Comparable restaurant sales %
change 6.1% -2.0%
Restaurant cost of sales % of
restaurant sales 24.9% 23.5%
Bakery cost of sales % of bakery
sales 48.9% 47.3%
Restaurants opened during period 2 2
Restaurants open at period-end 79 65
Restaurant operating weeks 1,016 835
CONTACT: The Cheesecake Factory Incorporated
Jane Vallaire, (818) 871-3000