CAKE - Earnings call transcript Q3 2017 | The Cheesecake Factory Incorporated

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Operator

Good day, ladies and gentlemen, and welcome to The Cheesecake Factory Third Quarter 2017 Earnings Conference Call. At this time, all participants are in listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time.

As a reminder, this conference is being recorded. I would like to introduce your host for today's conference, Stacy Feit, Senior Director of Investor Relations. proceed. Please

Stacy Feit

and third afternoon, earnings fiscal to call. welcome Good quarter our XXXX Thanks.

today our Clark, David Executive the Officer. are On call Overton, President Chief Gordon, President; Vice Officer; our Chairman and Executive Matt our and Financial David Chief and

as me are begin, you remind All Actual within on the those in undertakes meaning our detailed considered statements will any forward-looking let call call, based on this forward-looking Private that, a are Securities of Reform as XXXX. our today's discussed available investors.thecheesecakefactory.com statements update results forward-looking at that which statements. the in and Before materially not made in today's company on this is the Act Securities historical items the result different quickly only date or we stated during be website and of forward-looking speak no filings Commission. press of be fact of to Litigation and Exchange factors statements duty with release, could and the from implied

remarks. thoughts today's will initial be provide with addition, an terminations. earnings call, on begin Matt in this Overton we discussing well during XXXX. lease basis, full the will you the operating fourth and our detail and will our our results take which then through and quarter per adjusted share opening for excludes as In some impairment David outlook year on as XXXX, call

to Following that, I'll With that, turn the we'll the David. call over questions. open call to

David M. Overton

Stacy. you, Thank

significant culture management, could. challenging is Factory for field corporate of restaurants, values we to relief provide from our together safe coming not that even to want in the The times. wonderful quarter see Cheesecake so It significant the our members our storms. and hurricane teams are every and damage results any I third power in way activity, fortunate center by the did impacted restaurants sustain our are to support While staff were commend across we and

Excluding with weather impact the quarter, to in and line expectations. our our the sales were significant earnings results

As experience, is we trends. to underlying continuing we invest to believe our stabilization we sales the of guest look contributing are forward, in which

First wants items locations. and restaurants. from fresh that guest made daily in innovate our high-energy is menu service exactly premier performance with consumer our what provide and Today's a to providing as operators We same the our food and unique system-wide as all restaurant foremost, and increased with productivity on focused dining, that restaurants. year-over-year. the labor we couple great scratch ambience at time, we their hospitality efficiency in ever experiential with in continue At are our as

also retention continue our drive metrics remain hourly leading. to and manager industry strong retention staff We

delivery our locations. XX% in rollout Turning our national is delivery third-party of continues. via provider about available At to off-premise, present,

Just last our into month, provider. we second with an agreement entered

expect XX% this of year. our We XXXX. of believe to by of half about our delivery we the reach offer will restaurants And approximately first restaurants end by of XX% the we

pilot by to ordering our in the contributor this of to to will end which the further opportunity the business another augment to-go nice are our Based to Brunch, be saw we strong off-premise work a of with including on also could believe consumer online growth addition continuing We of capability, We on year. sales. Brunch. trends, support Sunday continued our Saturday be improvements

restaurants. menu weekend growing industry, for Cheesecake great this broader from at time been with breakfast a the we have was served to part The it, be for brunch day felt offering. XX:XX all to PM a that now guests AM will Our expand asking and Factory X:XX

a the excellent new recently Promoter methodology with top We addressed, Cheesecake works leading to Net be at staff insights need reinforcing with better current that for believe drive brands sales. what restaurants. across initiatives, measurement behaviors to positive understand satisfaction. Factory the provide We and with opportunities align better actionable a launched our occasions our we to memorable will while The known dining of platform more Finally, our this with number provider to partnered us satisfaction that leverages guest guest further promote

On second front, in Cheesecake we the Hawaii, of Kapolei, Factory Island opened in on development a the Oahu September.

Our highest system, guests saw all restaurant in the Honolulu the Kapolei location is our opening. XXX deep grossing and following week lines

additional Factory fourth to our We This the in will mid-October quarter. a bring eight to expect Minnetonka, five Cheesecake anticipated company-owned openings Minnesota, in opened also in XXXX. restaurants and open us during restaurant

agreements opened in in restaurants to year-end. second in Qatar, under past in first Sunday, that expected third location September, this opened the includes is by Cheesecake four This open Factory which Bahrain internationally location and to location the expect open to XXXX. continue that the licensing We Qatar in

believe continue Factory domestic We to there for potential XXX is Cheesecake locations.

ongoing generate that to intent in will decisions our sites capital rigorous to for we We look the always we great the long-term capital returns our our with shareholders. meet invest also and allocation balance – best standards,

four many to current open XXXX company-owned the given one forward as to Looking Cafe. six restaurants, dynamics, as to expect we including and industry Grand Lux

to to We I to under Matt With open four XXXX. many agreements licensing as five for review. now the our also that, turn internationally restaurants call will in financial expect as over

Matthew Clark

$X.X% Cheesecake the million. at an lost The significant the XXX third revenues Comparable Factory Thank including due from for impact XXXX during quarter $XXX.X hurricane you, activity the sales to were declined more of negative approximately operating restaurants, than X.X% days quarter. David. Total

the utilities quarter million third XX XXXX, About year. in basis XX.X% year, was up XX in XXX revenues, expected, Other majority of versus of points third basis line third hourly as openings Pre-opening fiscal same in third points increase million of hurricanes, and points declined marketing year. of in in wage third was approximately due quarter revenues, in driven last basis quarter with rates, the XXXX. was same primarily our the of about X.X%, sales $XX.X quarter the the of expense prior the XXXX in by in quarter. was the Excluding G&A to revenues to attributable the $X.X the last of repairs which have an External impact, higher well operating was the as had XX.X% versus the year. the period were was prior sales from expectations. costs increase of the with of X.X% from impacts period some this is not were $X as balance Labor opening while higher costs XX.X% of one line of quarter XXXX, We of deleverage. roughly year-over-year. in bakery revenues, did maintenance third last sales year. quarter expense, any and the comparable which weather from line Cost of was we million the same and

quarter. Our hurricane impact XX% and the this activity was during per from rate approximately quarter adjusted share of earnings negative which the tax was approximately $X.XX, $X.XX includes

Excluding the first impact the million XXXX results months $XX roughly third growth was business in cash cash capital used bottom for flow approximately and That the capital $XXX were quarter up free quarter. through of of expenditures for our financial of flow from operations our investments, million the Net with line we for million. generated storms, review in XXXX. wraps the line Cash third nine our from expectations. of and about $XX

XXXX, thoughts our the full for Now, the fourth well outlook quarter XXXX. few on as and on I'll year our spend a as initial minutes

the the best know weeks we as effect continue earnings on this everything most in comparable we in ranges done at factor includes associated to-date holidays time. for we've and of we any or current the sales and assumptions ahead weather. information quarter the estimate what per trends, to These happen today, will As of in we impacts which with based think have past, provide realistic share assumptions our cost

adjusted earnings and the full Factory year XXXX, improved to is on This per XX% at With comparable of to an XXXX, down hurricane quarter earnings assumed well of additional experience Rico we share fourth we're the restaurant our to of to approximately $X.XX in quarter continuing Puerto the rate the For expect trend in $X.XX from third and X% between of now impact restaurants includes share between $X.XX activity respect tax based we $X.XX. of sales Cheesecake XX%. and fourth per $X.XX. as flat an to between The quarter. and estimating estimating approximately as continue negative at impact diluted are approximately sales we the X% This the comparable are diluted decline

rate, now Regarding expect our we for it corporate XX% tax be XXXX. approximately to

$XXX accounting be anticipate between reminder, adoption the completing Together rules $XXX activity. regarding shareholders year drew in we this revolver return $XX rate million reflects plan lower quarter between repurchases million, between of our million and repurchase we of with XXXX. capital to third share million expect $XXX We to capital We million million our new expenditures and to stock-based year. $XXX and and compensation. to total $XXX now support now million a As on dividend, this $XXX tax the this in

we Turning The restaurants. to at $X.XX fiscal on up Cheesecake earnings share per to $X.XX assumed comparable diluted of sales estimating range currently an and are between based X% XXXX, flat Factory

trends range reflects stabilizing. this it importantly, reflects that While believe our we earning industry are sales the cost pressures,

currently across notably, cost poultry, seeing X% bread the market This seafood of most inflation basket. of for costs. just our XXXX higher we are food categories, side, On dairy, inflation and over most reflects

cost lock in and of are mitigate savings we optimization is at to the of product prices stages to seeing. They most help contracting However, some XXXX, our in initiatives possible. the evaluating areas the are team to for potential favorable diligently identify supply we're chain working also for pressure early

approximately with level wage also experienced of rate we Our have X% guidance consistent this assumes range in inflation year. XXXX, the

which defense member our discussed, labor David staff best As strong, in the the current is is environment. retention

more costs. market-based to to rising help where continuing move mitigate concentrated wage also forward are most We labor the is with pressure pricing

repairs it sales. in would have in G&A fluctuate while we target maintenance holding pressure XXXX. can operating As year-to-year. of continue we And in expense Overall, to to percent to approximately XXXX, see other other improvement percent costs OpEx also some sales a as seen and these relates expect expenses, some a flat we as in of

rate, corporate be our for expect it XX% tax to approximately XXXX. Regarding we

six Our our commitments. million total and expected growth many spending capital $XX and and CapEx openings investment to as including be investment four XXXX company-owned planned between to as million is $XXX in

of hurricane through quarter and our to to a industry In cash the all Our significant was continue restaurants closing, one dividend free XXXX. flow third generate headwinds. we program repurchase given shareholders in to cash our and and the substantial challenging return activity share a plan of amount

However, we of business believe the underlying our sales are fundamentals improving.

diversified the mid-teens incremental to current growth shareholders we set maintain additional position total long-term and to of accommodate focused our cost our generate take industry as as your a shareholders. return In profitability to questions one and environment, with With yourself are opportunities manage the Concurrently, ROIC. effectively possible, objective to allocation diligent well for corporate capital re-queue we'll management of mid-teens as as we to our company as many to support please to on to prudent through any order returns limit We the questions. execute Operator? said, achieve best continue questions. on question then level that

Operator

first our from John And from Stanley. Glass Morgan question comes

open. Your line is

Unknown Speaker

talk Chris how of This Hi. to for XQ exit you the flat? quarter to seeing down and of that you sales momentum about how trended were guide is on what and in (XX:XX) X% terms through relates John. the Could

Matthew Clark

see think that I an most and I in our guidance little indicative bit particularly at year, feel in guidance know we pretty in but I the trend (XX:XX) in think confident that for what think pretty least clarity Chris. the direction. Sure, we was today. that a start. the there for right we're had are as of QX feel that next and we think move And the is us we that starting Obviously, some providing we're to headwinds, gave, the there industry, communicating we're improving at volatile so to in people quarter, still you I But good business. the it

Unknown Speaker

the sneak them into you efforts consumer, there bring the highlighting I talked back you've more in and Last value-focused if if update to more. able to quarter, the on been about restaurant? any Thanks. value Okay. could one And

Matthew Clark

rates great that that. to than that we had of effectiveness I of menu with in normal seeing would think We've what rolled spring, change, the I from so out that adoption a we're think the higher incident speaks special we menu card much

see are we continue have we'll innovate the ways. price it continue with look be well. points and think we our so some reality And of but seems menu in guests we'll to to variety a using it many the how just I reinforce menu, the messaging the to for to guests, working the as and many, our of on menu,

David M. Overton

that to still we're card continuing today. And use

Unknown Speaker

you. Thank Great.

Operator

comes question from our Barclays. from And Bernstein Jeffrey next

is open. Your line

Jeffrey Bernstein

as you well. Two very questions much. Thank Great.

The XX I past was the mean, year, on to maybe the first was outlook. units like I one unit it which per X%. in is just feel growth equating XX to

like Now, it we're current XXXX the environment a into step digit. single the low taking in to down seems at more least like

Just for new forward. doesn't you outlook XXX as But about forward your seem room you like of malls how is think there's term. going degree mentioned to opening likely it there wondering that large any units long caliber going any especially

the rate malls So growth pace just the had mid. years, I'm of the as like but sites growth unit of whether one follow-up. the just infill be we the low I then we about or you versus about that digit should more next unit annual really become And wondering should number really prior how you and available, think single to existing thinking expect long-term over of

Matthew Clark

Sure, Jeff.

sort it algorithm – just our let's think I to talk unit piece relates of of the growth about earnings as it.

total other as Factory, four think to to think, growth in years, to investments. Cheesecake it continue what X% to The with that's been we over our Keep and a that the to forward mid-teens three really in takes unit communicating it is mind X% I move get past we've we for probably returns.

So, any bit given moved it up because sites. with are we selective has the down a in little year, and

making I I sure been So, redevelopment. returns mall continue think we're the think some we're (XX:XX) and making good has upon making our be from limited it years to sites decisions. hitting don't XX%, dependent some years it's we're capital sure that will allocation to it X%, and the been that also

downtown at format look very in and for to situations flexible. Cheesecake the very, continue We Factory The areas is

where the little this I a the out have with some environment the capability looking think year, to bit construction is you're what particularly the hurricane moved of an respect of costs really, of at some up pulling industry.

an that I a stock term growth little the will Factory. where to X% confident We're leaning for seeing you're on little repurchases, continue the think are bit have open a makes sense. sales unit We to that pressured. rate think the in that The we been, environment Cheesecake bit as good long in X%

David M. Overton

we're growth. going And new waiting to analyze construction select where we're mall not open in to our certainly for sites and

Jeffrey Bernstein

quarter, the guess Got follow-up I'm to like – know out the getting the seem other just the stabilizing of to past malls, there's whether traffic it's a continues you've presumably as think – foot that, in affluent harder going shrink are a years but I as a comp by right, stop-in thought with the – hurricane which impact, underlying But in was you. better. was if that mentioned And of beneficiary you you about comp as the or lower-end took was to you guidance. to the the or as yourself be – therefore exposure, do and traffic just do, couple in a some sales more then wondering, seemed was think any a it growth destination, is down to I question mall be bit ago? you the fact but mall more come credence on I the little just wondering and the I'm still X.X% line an of you mall, for the your the it

Matthew Clark

a research think couple on core When on our as were going points to the done are frequently of they as that. I our Well, actually guests, mall guests we've before.

focused have very might it, we we the When in put at the over guests that I to going basis Brunch long-term think transparent we think there see pressure, some back sales or might think I mall to us been when return XX we this of guests sell-side started about a that little can for the and time, more the be objectives. back to low of research and good that? thesis we're out back to some David where we I think some economically So, also I initiatives. traffic or, points the that has some been of bit, been introducing down. maybe XXX total pulling do other pressure suggests it's recover there's points where core point look Saturday And do bringing we basis either X% environment. more be down we need our X% year, our at to do we're as think from to that maybe mentioned, meet

than we least X%, will can points XX if pressure to think X% basis more be at that we the So, to of seeing. seem it basis I recapture XXX points to offset mall that

Jeffrey Bernstein

much. very you Thank Great.

Operator

Tarantino David And our question comes from Baird. from next

Your line is open.

David E. Tarantino

Hi, good afternoon.

on that assume season QX to for that any have the clarification a a I traffic? Does mall have the And follow-up. Just related guidance your will pressures point. then last holiday structural

Matthew Clark

what I David, right. think seen years, what we in assumes of Yeah. have is it sort historical

I think you any neutral. we've of season think out. little like a to it holiday we beginning the that's And between. bit it's how at and holiday and have modeled with a anything lower And little the bit in the or higher end peaks that, timing respect

that's kind modeling. our of So

David E. Tarantino

Got my pressures you have outlook maybe it. Understood. on heading your pricing thinking talk outlined. about power margin And know year. then you next about cost the I year? Can you some into are how focus to highlighting planning next for you prior of your type is question menu? earnings with a value about guess, bit the to on on little how does you range up marry pricing to I mentioned? deliver take you are more comments the that And, needing What

Matthew Clark

Sure.

labor be in in combined coupled the to that's and pricing of offset QX I help prepared obviously, remarks, got supply And about expect less manage we as year it. to chain mentioned the some improvements to for piece that finding with, be with X.X% sales cost here into that. than entering wouldn't the we're it So, to that next of

look as changes make the success is that step we to long-term our So, of it in function the taking managing price. restaurants execute and those costs brand always, because has or think don't in the model we blend We big how integrity. a of be in to the labor maintaining

So, from the can we'll an costs price this operating those pressures, line from of margin year we a around at that we point hold total end margin perspective where sort at perspective. think and

components, what that there's I for is bakery store business, value and sales X% grow to leverage international. the use we other comp around and And seen can and respect think guest total in G&A somewhere price where ensuring and the includes or we've the the we've the restaurants, that value of with had that I those points. can that think all right, always

a bit might And pretty mix emphasis, little be the but so more to stabilize there tends well.

sure question up, come we mix because just the will So, in a about our was I'm example that about X.X%. pricing, X.X% had QX, negative and for

are So incident menu on a guest the higher we much and about negative talked X.X%. mix for total card the than the yet, how is a us menu normal rates change, only

so, balanced don't We think out, introduce always items perspective we be And gross can from margin. full discount. and a margin I at that that

that and arsenal balancing about we dessert third have And sales things So it's see in balancing that act one so in up, out. well. continued our really the to of go the rate was, as we incident quarter, great

David E. Tarantino

very much. Thank you

Operator

question from comes our And from Bittner Brian next Oppenheimer.

is line open. Your

Brian Bittner

guys. Thanks,

you trends? is is seeing And lot that industry what is, Just sustained are to a right the else sustained in just of can but stabilization – you you positive in you said, now. for confidence to anything I October, be XXXX trends. confidence has that guidance assume backs the that talk that sales very the the very you the there type of gives you going that in question a guys us know business stabilization as certainly about do indicators a improved there

Matthew Clark

performance I'll the day of obviously deviation we note things and couple of standard look reference consistency clarity week the our an have the points. the just we external great From like of the on performance, restaurants, Sure. between a and internal part execution. internal perspective, and the restaurant day at

in the of post those the again and become which have that middle year. kind saw of of bit of kind the little we tighter slowdown it All saw, metrics industry most a everybody

we're years think, when performance, I So, recalibrate tight I think used given a what indicator. that's XX sort history to, of see really of of positive to we it

indicators I think, look point. the pretty consumer at high externally, macroeconomic confidence broad at a and you is

the been I pickup there's restaurant think in spending. for we've in in SpendingPulse, Mastercard they October that saw seen, example, a like

stabilization that And kinds least indicators to I so, of both to kind and support given those of up that internally back some seeing X%. externally, we're think flat of they at

saying see at it I it. to it's we until more think supports be back going But that on least that we'll hold that. I robust think

Brian Bittner

And just I And appreciate that. quick follow-up. a

year-over-year labor expecting look this kind same-store cost per as expect in similar or want basis of to they've cost you do trend on trend in cost, labor a far year. you or on however been in our be operating type line similar it, week As pretty of a models basis? that at quarter-after-quarter change Should we a XXXX per store type any

Matthew Clark

pretty for pressure. – I I again, X% and full fair. I volatility going probably if you it's your probably know, little pretty assessment indicator, the year skewed. But wage comes out that's QX, model bit out given be probably the the think model to if as I hurricanes, rate given use that look indicative – a at I where an necessarily that's wouldn't and you think

I that Brian, So, would be fair. think

Brian Bittner

Okay. Thank you.

Operator

Ivankoe And our from JPMorgan. question from comes next John

line is open. Your

John William Ivankoe

is years. are that on you've The cost of basically the for of new because pre-opening are question, XX maybe to but couple side, Hi. inefficiencies growth your of growth outside course, also I question as reflective that parts, the that same-store relates exist your quantitative to execution, always growth been the in of that are maintaining business. sales, your a growth but to G&A cost the think, of maintaining has in related The and, it that's P&L costs unit a company

fiscal development if like down growth lower of bottom more could to going opportunity sustain future look a think words, forward, unit the us if and just how can't perhaps of that really to see a a the this number company here? to of we the there So, of growth to cost you unit in that in of, is might of eases level the fall. for from really, color just other kind begin way business XXXX some do So, isn't P&L that be give about

Matthew Clark

Yeah.

I when us, think question, grow. XXXX, do for algorithm that's we our look for and but is fair John, a forward continuing look we then really to what to at the

So to that we continue and I have time. think and we in time. see sites support this in we're exercise something, as at we that's potential an could Grand don't that's point we Cafe, going the our but think through at And Flower Cheesecake Lux North and this partners and and the forward about, to for we Factory point look we grow I Child not to acquire guess, continue yet international

So that answer exercise. not you doing we're a because I that don't I for know good would have

John William Ivankoe

question a and David. – may I for if And

have the some real if number estate think lived late this the different XXXX, through obviously you wait get of even brand. in to do years? this or economic we a might work you to cycles to XXXX, capital you put sites similar investments lower continue many price this cycles, about When of opportunity You've with want to cycle at out business in the

David M. Overton

happen. will that think don't I No,

growing sites, that online. it's come think And, really in again, with new business as think only better. concepts I get Matt yeah, will said, terms it's picking to our I great as going probably of usual

opening the future we to our in as are and for good think international shape we're keep well partners. I as going on

John William Ivankoe

you. Okay. Thank

Operator

Guggenheim. And our next question from DiFrisco Matthew from comes

Your line open. is

Matthew DiFrisco

Thank you.

I the quarter? Did guys Just a the I had think I wanted missed, the to then question. traffic in give and a something – you but clarify had check I

Matthew Clark

happy We're mix was check X%. X.X%, it did. was a the positive Pricing, it negative average was to X.X%, so to We give you. the a

was So the difference traffic. then the

X.X% the And so, But hurricane, if we negative look adjusted from it a at negative from . X.X%. an

Matthew DiFrisco

can the Okay. sort seeing recovery – and of about improvement far from or And you're there or as a at you're quarter, there that anything talking outlier pickup hurricanes? fourth in economy or Are that there you in then the Texas is post look your larger the regionally? you're recovery that in the an seeing the the that Florida strength as

Matthew Clark

Matt, good a question. really that's

we to I a Frankly, that really the kind look seeing that region are still not there's anything. think or good across stable trend. trend we another is the like the strong, gauge things Northeast one kind carry at it's Mid-Atlantic of and actually whether of as seeing of if it's not we're it's But one country. that

seeing I board. a outlook across improvement think the we're just modest

Matthew DiFrisco

the of then store there and facelifts sort looked toured amount been you also, if my a especially question in East on when your comps of on the the know And last of your base, stores couple at Coast, I done Coast. heavy we've refurbishing a well in has West and actually Hackensack as

benefit in potential there going or BAND-AID through is retail meaningful maybe the mean, enough facelift you've there where Is a that and broader of that mall somewhat some the there of disruption through? is of taken environment the it – you So, off these maybe around is some with is the XXXX? optimism maybe a that of XXXX is construction lived some I of get – went the rejuvenated properties that you the

Matthew Clark

That that don't that – they're That front me dollars, – percentage years continue. and in. the I What in – what the going you've A got getting getting that reinvestment it's sort four don't getting the that. number of reinvestment. or two in locations good I of is know – now. or And But three we're been we're think for one, of have because happening we is malls there we're is happening around really really they're questions to

I XX these of year, know owners locations are or every XX that refurbishing. those don't mall if So, it's

a a to so expect one that going for generally and been positive us. think that's good a because and we that trend, is to in or positive definitely next it's So, is continue undercurrent properties be long-term, benefit stay a an the and negative. of I while same benefit But would those But thing. just certainly kind not in the it year a

Matthew DiFrisco

Excellent.

Appreciate Okay. Thank you so much. it.

Operator

comes our from question Slabaugh Inc. Stephens, from And next Will

open. Your line is

Will Slabaugh

meaningful at characterize guys. the and happened, reasons you how current do and Wonder same sort if, history would Thanks, versus Yeah. back had? your of the particular, analyze quarters softness fairly that of look historical time, you the you same the group, what given just for in given few sales consistencies as the think at improvement, is of consistency driving at you've and those And Cheesecake? slowdown last what's outperformance the

Matthew Clark

shift Will, in a point I at I this out was Well, think restaurants. proven think And spending just time. in definitely sort first consumer the in down in there that's question, been

not we're footprint, I that that completely from so, of with that's think part a and immune a it. And national

had mall that to it, XX points and We we've communication basis of as and the – well. might communicated XXX have as basis be points around presence, the

all really track we own So, closely of our metrics. operating

We guest based done measurements a our of the love we've ensuring is ever consistently have lot We we're us. that that core and satisfaction that relevance that high same. guests the as think research doing really the on around everything brand as

as shifts will that held changed guests, on fringe, don't we got impacted back from inside there's walls. we've I wallet four of as little fair X% The we've our the X% core our some mentioned. bit and So, so to no think our restaurants, toward much well. that to doubt key a consumer we spending has is share as of get this

we we we need know work great We little have to to if bit X% reviews. that recapture continue to But X%. and a harder, to anything, get

Saturday we'll industry couple think has day Brunch, past of the on been doing part for work only So like I the growing that having the years. things breakfast in

help that, we of of X% X% that to will can down. little that sort was bit so, us recover share that And of a if get

Will Slabaugh

there, what you're then If Mid-Atlantic Got one strong could and you're comment follow other season. possible assuming a versus out quantify made you on as up holiday of you. around know the and the areas. I the kind some I'm seeing a that quarter little of is being playing bit And I that hurricane throughout didn't Northeast quite as if not of to thinking this about how it was and rebound that

Matthew Clark

Yeah.

it's any to of the the probably, really too holiday I we yeah, to expect we've in been years. for With from think, to overall it. past couple hurricane early said, about as has there be how Northeast think think part season, don't of difference I the rebound regards us it a

have you'll robust there's and consumer spending. and shift. reports holiday real I calling valleys, lower seen we've guess, holiday a Then, think no for higher are I that peaks a couple that

So, and be think to bit were be all X% than be if I we'd were we happier to that a then X%, year. last were it to little true

Will Slabaugh

it. Got Thank you.

Operator

Francfort from Gregory next question our America. of comes Bank And from

Your line open. is

Gregory R. Francfort

you will guys. debt to something that something about move open Hey, you to debt of talk back it XXXX? guys And to little you the back XXXX Can decision a to add of, the stock? is the into that doing be to is and down look would just bit the maybe as buy balance or sheet more you pay

Matthew Clark

strategically, of so X% Greg, tenants. we key I returner we've average. One repurchase reduced several a we've is consistent communicated tremendously waste on think capital, the little program of been and we've so year a have a over way kind is our

also market into stock bit know going at to what bit faster the certainly our hit, of to of the I this shift the so said, has We consistently in contemplating we're low point this to we're structure lot little credo bit. a every little the be a time obviously, and sense. do permanent capital think, opportunistically, not more pretty that but try buying to and a is time, so, we in a pretty a a buy been when year. is being stock we makes good thought And But old lean little

on outlook it's not further year. the on is now, So that to this right program. But other than anything opportunistic indicate of give our updates complete repurchase our meant next ongoing to we'll time some

Gregory R. Francfort

if Got it. one in. I sneak And more maybe

any differently different kind to November of door holiday December? approach you to the holiday the the at this guess through terms customers spend on and of into what or in industry year given season, all approaching last season Just in are the I try went year marketing drive

Matthew Clark

and National spend. just digital increase to things It's on continue be brand, and continue innovative, think utilize think we'll things think meaningful our a It way about that. a obviously, will we I it to to more not do reach social creative be we can guests, that. will media like that be to going fun, which like Cheesecake to do in be Day platforms are can

that, I And more so for increase in look spending. would think I – a raw that Greg, than just

David M. Gordon

very And as has program which us. been Joy QX during well, holidays to a successful into we'll we continue program Slice do traffic with our for the Gift Card of program and move our that

Gregory R. Francfort

Thank Got it. you.

Operator

question from Vaccaro Raymond from And James. our next comes Brian

line Your is open.

Brian M. Vaccaro

thanks and questions. taking evening, Good for my

I Just following at Matt, it, the sorry, that on what of end was one, up debt balance but QX? the if missed last

Matthew Clark

million. $XX

Brian M. Vaccaro

labor Okay, but into you any more you some each and cost earlier great. success initiatives? the future savings food call on on incremental might And savings of maybe any quantify you also be in Could on provide future savings, buckets productivity those color some and considering initiatives. XXXX, the comment mentioned

Matthew Clark

order guidance, I continue Brian, to and in it's the of we cost think ongoing between margins and a balance of management. to pricing certain what a QX to said kind XXXX is, degree taking manage the

we're labor significant think be going And so, this find we those model the optimization four to the chain we for activities, I managed year, that implement looking like for very We really that. it's within something and not supply changes tightly the so and around But our on for have walls. step in processes business big some don't we look example, there. actually function can

it it's So, is, than balancing and that an say, ongoing of initiatives, it's act would pricing cost I between management. more strategy and specific

Brian M. Vaccaro

comps Okay. the were in Lux what quarter? And, Matt, Grand

Matthew Clark

even and and little I but hurricanes by in Houston was about believe, was X.X%, weighted, them. points it presence XXX from impacted given impact Florida bit for Lux, the negative was that basis a So, the Grand more

negative adjusted. a X.X% about So

Brian M. Vaccaro

All right. planned relocations this That's are at great. And outlook then any last point? XXXX, in the one, on there development

Matthew Clark

Not at this point. No.

Brian M. Vaccaro

Thank Great. Okay. you.

Operator

Maxim our from next Group. Anderson question comes from Stephen And

Your open. line is

Stephen Anderson

embedded any on we for should guidance, Monday want account quarter – okay, how I a Year this afternoon. also on New Christmas the and and year your occurring Monday? a fourth in good to Yes, ask calendar shifts with particularly

Matthew Clark

assessment, Stephen. we factoring a out, at not either obviously of any so that do try in nets impacts all we're way, When look it kind to and material day-by-day

will right. be that hopefully, So,

Stephen Anderson

Thanks. Okay.

Operator

at this time, questions. And am further I no showing

Stacy Feit

to all speaking joining Great. you Thank to for And call. next you on look the today. forward we

Operator

conference. gentlemen, ladies you participation and the today's Well, your concludes This thank for in program.

You may now disconnect. Everyone have a great day.

The Cheesecake Factory Incorporated (CAKE) 1 Nov 172017 Q3 Earnings call transcript