Exhibit 99.1
The Cheesecake Factory Reports Record Financial Results
for the Fourth Quarter of Fiscal 2004
CALABASAS HILLS, Calif.--(BUSINESS WIRE)--Feb. 8, 2005--The
Cheesecake Factory Incorporated (Nasdaq:CAKE) today reported record
financial results for the fourth quarter of fiscal 2004 that ended on
December 28, 2004. Highlights for the fourth quarter, compared to the
same quarter last year, are as follows:
-- Total revenues up 24% to $266.1 million
-- Comparable restaurant sales up 3.0%
-- Net income up 32% to $20.5 million
-- Diluted net income per share up 30% to $0.26
Net income for the quarter benefited $2.0 million or $0.02 per
diluted share from receipt of a property insurance settlement (net of
associated legal fees) related to bakery product losses incurred by
the Company's central bakery production facility during fiscal 2002.
Before the benefit of this settlement, net income per diluted share
would have been $0.24, composed of the $0.26 per share less the $0.02
per share related to the settlement.
"We were very pleased with our record financial results for the
fourth quarter," said David Overton, Chairman and CEO. "Sales for our
comparable restaurants were up a solid 3.0%, thanks to the sustained
popularity of our concepts and great operational execution. We also
managed to achieve record net income by leveraging our strong sales to
help offset a very challenging cost environment, particularly in those
commodities impacted by the hurricanes during the third quarter."
For the first five weeks of fiscal 2005, comparable restaurant
sales were up approximately 3.9% in spite of the severe weather across
much of the country, including the heavy rains in California. The
winter storms in the Midwest and Northeast have resulted in
approximately 20 lost operating days. "Our positive comparable store
sales through January, in the face of some very poor weather in
several parts of the country, speaks to the continued strength of our
concepts and the geographic diversity of our growing brands,"
commented Overton.
Four new restaurants were opened during the fourth quarter,
including a Grand Lux Cafe in Houston, Texas. "We successfully
achieved our goal to open 16 new restaurants during fiscal 2004,
including two new Grand Lux Cafes, and set a new growth record for our
Company on that measure," said Overton. "Initial sales volumes for
substantially all of our 2004 openings have continued stronger than
initially expected. We are also very proud of our Honolulu location,
which opened in December 2003, and set a new Cheesecake Factory record
for first-year sales of $18.9 million."
During fiscal 2005, the Company's goal is to open as many as 18
new restaurants, including as many as three Grand Lux Cafes. Signed
leases or letters of intent are in hand for nearly all potential
locations for 2005. "As in prior years, we expect and plan for the
majority of our openings to occur in the second half of the year.
However, it is difficult for us to predict the timing of our new
restaurant openings by quarter, due to the nature of our leased
restaurant locations and our highly customized layouts," commented
Overton. "We currently plan to open five Cheesecake Factory
restaurants during the first quarter of 2005." The Company will
provide additional information and updates as to the expected number
and timing of restaurant openings during fiscal 2005 on its quarterly
investor conference calls.
Sales at the Company's Grand Lux Cafe locations continue to build
with both the Los Angeles and Chicago locations recording comparable
sales increases for the fourth quarter of approximately 10%. "Grand
Lux Cafe has already proven to be a huge success with our guests as
the three locations open for the full year delivered over $46 million
in sales," commented Overton. "We believe that we are well on our way
to achieving our return on investment targets and we are very pleased
with the initial results from our two newest Grand Lux Cafe locations
in Dallas and Houston."
Bakery sales to other foodservice operators, retailers and
distributors increased 28% to $19.0 million during the fourth quarter,
compared to the same quarter last year. Sales to warehouse clubs and
sales of The Dream Factory(R) product line continued to be very
strong.
The Company plans to release its quarterly results and hold
investor conference calls for the next three quarters on the following
dates:
Quarter Ending Release Date and Time Conference Call Date and
Time
- -------------- -------------------------- ----------------------------
March 29, 2005 April 19, 2005 - 4:15 PM April 19, 2005 - 5:00 PM
Eastern Eastern
June 28, 2005 July 19, 2005 - 4:15 PM July 19, 2005 - 5:00 PM
Eastern Eastern
Sept. 27, 2005 Oct. 18, 2005 - 4:15 PM Oct. 18, 2005 - 5:00 PM
Eastern Eastern
The Cheesecake Factory Incorporated operates 87 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 $16.60. 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 five upscale casual dining
restaurants under the Grand Lux Cafe(R) name; 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 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 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
pending litigation and the potential costs associated with that
litigation are subject to a number of risks and uncertainties,
including interpretations or clarifications of existing laws made by
governmental or judicial bodies. 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 December 28, December 30,
Operations 2004 2003
- ---------------------------------------------------- ----------------
Revenues: Amounts Percents Amounts Percents
----------------------------------
Restaurant sales $247,081 92.9% $199,626 93.1%
Bakery sales to other foodservice
operators, retailers and
distributors 19,017 7.1% 14,897 6.9%
---------------- ----------------
Total revenues 266,098 100.0% 214,523 100.0%
---------------- ----------------
Costs and expenses:
Restaurant cost of sales (1) 62,083 23.3% 48,533 22.6%
Bakery cost of sales (2) 9,084 3.4% 6,948 3.2%
Labor expenses 80,868 30.4% 64,829 30.2%
Other operating expenses 59,525 22.4% 51,005 23.8%
General and administrative
expenses 10,973 4.2% 8,958 4.2%
Depreciation and amortization
expenses 9,860 3.7% 7,719 3.6%
Preopening costs 3,525 1.3% 4,491 2.1%
---------------- ----------------
Total costs and expenses 235,918 88.7% 192,483 89.7%
---------------- ----------------
Income from operations 30,180 11.3% 22,040 10.3%
Interest income, net 827 0.3% 557 0.3%
Other income, net 145 0.1% 798 0.3%
---------------- ----------------
Income before income taxes 31,152 11.7% 23,395 10.9%
Income tax provision 10,639 4.0% 7,826 3.6%
---------------- ----------------
Net income $20,513 7.7% $15,569 7.3%
================ ================
Basic net income per share (3) $0.26 $0.20
========= =========
Basic weighted average shares
outstanding (3) 77,866 76,314
========= =========
Diluted net income per share (3) $0.26 $0.20
========= =========
Diluted weighted average shares
outstanding (3) 79,636 78,600
========= =========
52 Weeks Ended 52 Weeks Ended
Consolidated Statements of December 28, December 30,
Operations 2004 2003
- ---------------------------------------------------- -----------------
Revenues: Amounts Percents Amounts Percents
----------------------------------
Restaurant sales $916,375 94.5% $731,273 94.5%
Bakery sales to other foodservice
operators, retailers and
distributors 52,857 5.5% 42,562 5.5%
---------------- -----------------
Total revenues 969,232 100.0% 773,835 100.0%
---------------- -----------------
Costs and expenses:
Restaurant cost of sales (1) 230,854 23.8% 175,654 22.7%
Bakery cost of sales (2) 26,222 2.7% 19,716 2.6%
Labor expenses 298,387 30.8% 239,386 30.9%
Other operating expenses 223,068 23.0% 180,725 23.4%
General and administrative
expenses 40,639 4.2% 35,817 4.6%
Depreciation and amortization
expenses 35,338 3.7% 27,960 3.6%
Preopening costs 14,461 1.5% 11,859 1.5%
---------------- -----------------
Total costs and expenses 868,969 89.7% 691,117 89.3%
---------------- -----------------
Income from operations 100,263 10.3% 82,718 10.7%
Interest income, net 2,726 0.3% 3,466 0.4%
Other income, net 966 0.1% 2,944 0.4%
---------------- -----------------
Income before income taxes 103,955 10.7% 89,128 11.5%
Income tax provision 36,195 3.7% 31,292 4.0%
---------------- -----------------
Net income $67,760 7.0% $57,836 7.5%
================ =================
Basic net income per share (3) $0.87 $0.77
========= =========
Basic weighted average shares
outstanding (3) 77,613 75,633
========= =========
Diluted net income per share (3) $0.85 $0.74
========= =========
Diluted weighted average shares
outstanding (3) 79,395 77,772
========= =========
Notes:
- ------
(1) Consists of restaurant food, beverage and dessert costs.
(2) Consists of bakery ingredient, packaging and supply costs.
(3) Reflects a 3-for-2 stock split effective December 8, 2004.
Selected Consolidated Balance Sheet Information December December
28, 30,
2004 2003
- ------------------------------------------------ -------- --------
Cash and cash equivalents $14,041 $15,167
Investments and marketable securities 137,471 121,840
Total assets 713,253 584,808
Total liabilities 168,001 126,906
Stockholders' equity 545,252 457,902
13 Weeks 13 Weeks 52 Weeks 52 Weeks
Ended Ended Ended Ended
Supplemental Information December December December December
28, 30, 28, 30,
2004 2003 2004 2003
- ------------------------------------------- -------- -------- --------
Comparable restaurant sales % change 3.0% 2.5% 3.9% 0.7%
Restaurant cost of sales % of
restaurant sales 25.1% 24.3% 25.2% 24.0%
Bakery cost of sales % of bakery
sales 47.8% 46.6% 49.6% 46.3%
Restaurants opened during period 4 7 16 14
Restaurants open at period-end 93 77 93 77
Restaurant operating weeks 1,185 961 4,314 3,531
CONTACT: The Cheesecake Factory Incorporated
Jane Vallaire, 818-871-3000