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The Cheesecake Factory Reports Results for Second Quarter of Fiscal 2024

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The Cheesecake Factory (NASDAQ: CAKE) reported strong financial results for Q2 2024. Total revenues reached $904.0 million, up from $866.2 million in Q2 2023. Net income was $52.4 million, with diluted EPS of $1.08. Adjusted net income and EPS were $53.2 million and $1.09, respectively. Comparable restaurant sales at The Cheesecake Factory restaurants increased 1.4% year-over-year.

The company opened five new restaurants in Q2, including one Cheesecake Factory, one North Italia, two Flower Child locations, and one Culinary Dropout. They aim to open up to 22 new restaurants in fiscal 2024. The company's liquidity stood at $277.2 million, with $40.7 million in cash and $236.5 million available on its revolving credit facility. A quarterly dividend of $0.27 per share was declared.

The Cheesecake Factory (NASDAQ: CAKE) ha riportato risultati finanziari solidi per il secondo trimestre del 2024. I ricavi totali hanno raggiunto i 904,0 milioni di dollari, in aumento rispetto agli 866,2 milioni di dollari del secondo trimestre del 2023. Il reddito netto è stato di 52,4 milioni di dollari, con un utile per azione diluito di 1,08 dollari. Il reddito netto rettificato e l'EPS erano rispettivamente di 53,2 milioni di dollari e 1,09 dollari. Le vendite nei ristoranti comparabili delle ristoranti The Cheesecake Factory sono aumentate del 1,4% su base annua.

L'azienda ha aperto cinque nuovi ristoranti nel secondo trimestre, tra cui un Cheesecake Factory, un North Italia, due Flower Child e un Culinary Dropout. Puntano ad aprire fino a 22 nuovi ristoranti nell'esercizio fiscale 2024. La liquidità dell'azienda era di 277,2 milioni di dollari, con 40,7 milioni in contanti e 236,5 milioni disponibili sul suo credito rotativo. È stato dichiarato un dividendo trimestrale di 0,27 dollari per azione.

The Cheesecake Factory (NASDAQ: CAKE) informó resultados financieros sólidos para el segundo trimestre de 2024. Los ingresos totales alcanzaron los 904,0 millones de dólares, un aumento desde los 866,2 millones de dólares en el segundo trimestre de 2023. El ingreso neto fue de 52,4 millones de dólares, con un EPS diluido de 1,08 dólares. El ingreso neto ajustado y el EPS fueron de 53,2 millones de dólares y 1,09 dólares, respectivamente. Las ventas en restaurantes comparables de The Cheesecake Factory aumentaron 1,4% interanual.

La empresa abrió cinco nuevos restaurantes en el segundo trimestre, incluyendo un Cheesecake Factory, un North Italia, dos Flower Child y un Culinary Dropout. Tienen como objetivo abrir hasta 22 nuevos restaurantes en el ejercicio fiscal 2024. La liquidez de la empresa se situó en 277,2 millones de dólares, con 40,7 millones en efectivo y 236,5 millones disponibles en su línea de crédito rotativa. Se declaró un dividendo trimestral de 0,27 dólares por acción.

The Cheesecake Factory (NASDAQ: CAKE)는 2024년 2분기 강력한 재무 결과를 보고했습니다. 총 수익은 9억 4백만 달러로, 2023년 2분기의 8억 6천 6백 20만 달러에서 증가했습니다. 순이익은 5천 2백 40만 달러였고, 희석 주당 순이익(EPS)은 1.08달러였습니다. 조정된 순이익 및 EPS는 각각 5천 3백 20만 달러 및 1.09달러였습니다. The Cheesecake Factory 레스토랑의 동종 매출은 전년 대비 1.4% 증가했습니다.

회사는 2분기에 새로운 레스토랑 5곳을 열었으며, 여기에는 Cheesecake Factory 1곳, North Italia 1곳, Flower Child 2곳, Culinary Dropout 1곳이 포함됩니다. 그들은 2024 회계연도 동안 최대 22개의 새로운 레스토랑을 열 계획입니다. 회사의 유동성은 2억 7천 72만 달러로, 현금 4천 7백만 달러와 회전신용대출에서 2억 3천 65만 달러가 이용 가능합니다. 주당 0.27달러의 분기 배당금이 선언되었습니다.

The Cheesecake Factory (NASDAQ: CAKE) a annoncé de solides résultats financiers pour le deuxième trimestre de 2024. Les revenus totaux ont atteint 904,0 millions de dollars, en hausse par rapport à 866,2 millions de dollars au deuxième trimestre 2023. Le bénéfice net s'établit à 52,4 millions de dollars, avec un BPA dilué de 1,08 dollar. Le bénéfice net ajusté et le BPA étaient respectivement de 53,2 millions de dollars et 1,09 dollar. Les ventes dans les restaurants comparables des restaurants The Cheesecake Factory ont augmenté de 1,4 % d'une année sur l'autre.

L'entreprise a ouvert cinq nouveaux restaurants au deuxième trimestre, dont un Cheesecake Factory, un North Italia, deux sites Flower Child et un Culinary Dropout. Ils visent à ouvrir jusqu'à 22 nouveaux restaurants au cours de l'exercice 2024. La liquidité de l'entreprise était de 277,2 millions de dollars, avec 40,7 millions de dollars en espèces et 236,5 millions de dollars disponibles sur sa ligne de crédit renouvelable. Un dividende trimestriel de 0,27 dollar par action a été déclaré.

The Cheesecake Factory (NASDAQ: CAKE) meldete starke Finanzergebnisse für das zweite Quartal 2024. Der Gesamtumsatz betrug 904,0 Millionen Dollar, ein Anstieg von 866,2 Millionen Dollar im zweiten Quartal 2023. Der Nettogewinn betrug 52,4 Millionen Dollar, mit einem verwässerten EPS von 1,08 Dollar. Der bereinigte Nettogewinn und das EPS betrugen jeweils 53,2 Millionen Dollar und 1,09 Dollar. Die vergleichbaren Restaurantumsätze in den The Cheesecake Factory Restaurants stiegen um 1,4 % im Jahresvergleich.

Das Unternehmen eröffnete fünf neue Restaurants im zweiten Quartal, darunter ein Cheesecake Factory, ein North Italia, zwei Flower Child-Standorte und ein Culinary Dropout. Sie planen, bis zu 22 neue Restaurants im Geschäftsjahr 2024 zu eröffnen. Die Liquidität des Unternehmens betrug 277,2 Millionen Dollar, mit 40,7 Millionen Dollar in bar und 236,5 Millionen Dollar, die über die revolvierende Kreditfazilität verfügbar sind. Eine vierteljährliche Dividende von 0,27 Dollar pro Aktie wurde erklärt.

Positive
  • Total revenues increased to $904.0 million, up 4.4% year-over-year
  • Comparable restaurant sales at The Cheesecake Factory restaurants grew 1.4% year-over-year
  • Adjusted net income reached $53.2 million, with adjusted EPS of $1.09
  • Opened five new restaurants across various concepts in Q2 2024
  • Strong liquidity position with $277.2 million available
  • On track to meet development objective of opening up to 22 new restaurants in 2024
Negative
  • Recorded a pre-tax net expense of $1.0 million related to Fox Restaurant Concepts acquisition and impairment of assets
  • Total principal amount of debt outstanding was $475.0 million

Insights

The Cheesecake Factory's Q2 2024 results demonstrate solid performance and financial stability. Total revenues increased by 4.4% year-over-year to $904.0 million, indicating continued growth. The company's net income of $52.4 million and diluted EPS of $1.08 show strong profitability.

Notably, comparable restaurant sales at The Cheesecake Factory restaurants grew by 1.4%, outperforming the broader casual dining industry. This suggests the brand's resilience and consumer appeal in a competitive market.

The company's expansion strategy remains on track, with five new restaurants opened in Q2 and a total of 11 opened year-to-date. The target of opening up to 22 new restaurants in 2024 across various concepts demonstrates confidence in future growth prospects.

Financially, The Cheesecake Factory maintains a strong liquidity position with $277.2 million available, including $40.7 million in cash. The debt structure, including $345.0 million in convertible senior notes and $130.0 million drawn on the revolving credit facility, appears manageable given the company's cash flow generation.

The continuation of share repurchases and a quarterly dividend of $0.27 per share underscores management's confidence in the company's financial health and commitment to shareholder returns.

The Cheesecake Factory's Q2 2024 results reveal interesting consumer trends in the casual dining sector. The 1.4% increase in comparable restaurant sales suggests that despite economic pressures, consumers continue to value experiential dining options. This resilience in demand could be attributed to the brand's strong positioning and unique offerings in the market.

The company's multi-brand strategy, including concepts like North Italia, Flower Child and Culinary Dropout, appears to be resonating with diverse consumer preferences. The successful openings across these concepts indicate a well-calibrated approach to capturing different market segments.

Notably, the company's ability to drive year-over-year improvements in labor productivity and staff retention is significant in the current tight labor market. This could provide a competitive advantage in terms of service quality and operational efficiency.

The international expansion, with a new Cheesecake Factory opening in China under a licensing agreement, suggests the brand's global appeal and potential for further international growth. This could be a key area to watch for future market penetration and revenue diversification.

Overall, The Cheesecake Factory's performance indicates a positive consumer sentiment towards premium casual dining experiences, potentially signaling a broader trend in the restaurant industry as it continues to recover and evolve post-pandemic.

CALABASAS HILLS, Calif.--(BUSINESS WIRE)-- The Cheesecake Factory Incorporated (NASDAQ: CAKE) today reported financial results for the second quarter of fiscal 2024, which ended on July 2, 2024.

Total revenues were $904.0 million in the second quarter of fiscal 2024 compared to $866.2 million in the second quarter of fiscal 2023. Net income and diluted net income per share were $52.4 million and $1.08, respectively, in the second quarter of fiscal 2024.

The Company recorded a pre-tax net expense of $1.0 million related to Fox Restaurant Concepts (“FRC”) acquisition-related expenses and impairment of assets and lease termination income. Excluding the after-tax impact of these items, adjusted net income and adjusted net income per share for the second quarter of fiscal 2024 were $53.2 million and $1.09, respectively. Please see the Company’s reconciliation of non-GAAP financial measures at the end of this press release.

Comparable restaurant sales at The Cheesecake Factory restaurants increased 1.4% year-over-year in the second quarter of fiscal 2024.

“Building on our first quarter momentum, we delivered solid top- and bottom-line results in the second quarter contributing to a strong performance in the first half of the year,” said David Overton, Chairman and Chief Executive Officer. “Our second quarter revenue finished towards the higher end of our expectations, and we generated robust earnings growth with profit margins exceeding the high end of our expectations. Our second quarter results were led by the strength of The Cheesecake Factory restaurants. The resilient consumer demand for the distinct, high-quality dining experiences we provide our guests and brand affinity for our namesake concept has been pivotal in supporting our continued outperformance of the broader casual dining industry. Our operators drove solid operational execution within our restaurants to deliver year-over-year improvements in labor productivity and hourly staff and manager retention.”

“We opened five new restaurants across various concepts and markets during the second quarter. The strong demand and sales performance at our new restaurant openings underscores the broad appeal of our experiential concepts. With 11 restaurants opened as of today, we are well-positioned to meet our development objective to open as many as 22 new restaurants in 2024. Most importantly, following three consecutive quarters of stable topline revenue, strong operational execution and significant profitability growth, we generated the consistent results that The Cheesecake Factory has long been known for.”

Development

During the second quarter of fiscal 2024, the Company opened five new restaurants, including one Cheesecake Factory, one North Italia restaurant, two Flower Child locations and one Culinary Dropout. In addition, one Cheesecake Factory restaurant opened internationally under a licensing agreement in China. Subsequent to quarter-end, the Company opened one Blanco location.

The Company continues to expect to open as many as 22 new restaurants in fiscal 2024, including as many as three The Cheesecake Factory restaurants, six to seven North Italia restaurants, six to seven Flower Child locations, and seven to eight other Fox Restaurant Concept locations.

Liquidity and Capital Allocation

As of July 2, 2024, the Company had total available liquidity of $277.2 million, including a cash balance of $40.7 million and availability on its revolving credit facility of $236.5 million. Total principal amount of debt outstanding was $475.0 million, including $345.0 million in principal amount of 0.375% convertible senior notes due 2026 and $130.0 million in principal amount drawn on the Company’s revolving credit facility.

The Company repurchased approximately 111,400 shares of its stock at a cost of $3.9 million in the second quarter of fiscal 2024. In addition, the Company’s Board of Directors has declared a quarterly dividend of $0.27 per share to be paid on August 27, 2024 to shareholders of record at the close of business on August 14, 2024.

Conference Call and Webcast

The Company will hold a conference call to review its results for the second quarter of fiscal 2024 today at 2:00 p.m. Pacific Time. The conference call will be webcast live on the Company’s website at investors.thecheesecakefactory.com and a replay of the webcast will be available through August 30, 2024.

About The Cheesecake Factory Incorporated

The Cheesecake Factory Incorporated is a leader in experiential dining. We are culinary forward and relentlessly focused on hospitality. Delicious, memorable experiences created by passionate people – this defines who we are and where we are going. We currently own and operate 340 restaurants throughout the United States and Canada under brands including The Cheesecake Factory®, North Italia®, Flower Child® and a collection of other FRC brands. Internationally, 34 The Cheesecake Factory® restaurants operate under licensing agreements. Our bakery division operates two facilities that produce quality cheesecakes and other baked products for our restaurants, international licensees and third-party bakery customers. In 2024, we were named to the FORTUNE Magazine “100 Best Companies to Work For®” list for the eleventh consecutive year. To learn more, visit www.thecheesecakefactory.com, www.northitalia.com, www.iamaflowerchild.com and www.foxrc.com.

From Fortune. ©2024 Fortune Media IP Limited. All rights reserved. Used under license. Fortune® and Fortune 100 Best Companies to Work For® are registered trademarks of Fortune Media IP Limited and are used under license. Fortune and Fortune Media IP Limited are not affiliated with, and do not endorse products or services of, The Cheesecake Factory Incorporated.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as codified in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, without limitation, statements regarding consumer demand and restaurant development. Such forward-looking statements include all other statements that are not historical facts, as well as statements that are preceded by, followed by or that include words or phrases such as “believe,” “plan,” “will likely result,” “expect,” “intend,” “will continue,” “is anticipated,” “estimate,” “project,” “may,” “could,” “would,” “should” and similar expressions. These statements are based on current expectations and involve risks and uncertainties which may cause results to differ materially from those set forth in such 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. These forward-looking statements may be affected by various factors including: economic, public health and political conditions that impact consumer confidence and spending, including increased interest rates, periods of heightened inflation and market instability, and armed conflicts; supply chain disruptions; demonstrations, political unrest, potential damage to or closure of the Company’s restaurants and potential reputational damage to the Company or any of its brands; pandemics and related containment measures, including the potential for quarantines or restriction on in-person dining; acceptance and success of The Cheesecake Factory in international markets; acceptance and success of North Italia, Flower Child and Other Fox Restaurant Concepts restaurants; the risks of doing business abroad through Company-owned restaurants and/or licensees; foreign exchange rates, tariffs and cross border taxation; changes in unemployment rates; increases in minimum wages and benefit costs; the economic health of the Company’s landlords and other tenants in retail centers in which its restaurants are located, and the Company’s ability to successfully manage its lease arrangements with landlords; the economic health of suppliers, licensees, vendors and other third parties providing goods or services to the Company; the timing of new unit development and related permitting; compliance with debt covenants; strategic capital allocation decisions including with respect to share repurchases or dividends; the ability to achieve projected financial results; the resolution of uncertain tax positions with the Internal Revenue Service and the impact of tax reform legislation; changes in laws impacting the Company’s business; adverse weather conditions in regions in which the Company’s restaurants are located; factors that are under the control of government agencies, landlords and other third parties; the risks, costs and uncertainties associated with opening new restaurants; and other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission (“SEC”). Forward-looking statements speak only as of the dates on which they are made, and 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 law. Investors are referred to the full discussion of risks and uncertainties associated with forward-looking statements and the discussion of risk factors contained in the Company’s latest Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K as filed with the SEC, which are available at www.sec.gov.

The Cheesecake Factory Incorporated
Condensed Consolidated Financial Statements
(unaudited; in thousands, except per share and statistical data)
 

13 Weeks Ended

 

13 Weeks Ended

 

26 Weeks Ended

 

26 Weeks Ended

Consolidated Statements of Income

July 2, 2024

 

July 4, 2023

 

July 2, 2024

 

July 4, 2023

Amount

Percent of
Revenues

 

Amount

Percent of
Revenues

 

Amount

Percent of
Revenues

 

Amount

Percent of
Revenues

 

 

 

Revenues

$

904,042

 

100.0

%

$

866,170

 

100.0

%

$

1,795,265

 

100.0

%

$

1,732,284

 

100.0

%

Costs and expenses:
Food and beverage costs

 

201,694

 

22.3

%

 

201,094

 

23.2

%

 

404,947

 

22.6

%

 

407,318

 

23.5

%

Labor expenses

 

317,282

 

35.1

%

 

306,149

 

35.3

%

 

638,212

 

35.5

%

 

617,677

 

35.7

%

Other operating costs and expenses

 

239,097

 

26.4

%

 

226,996

 

26.2

%

 

472,638

 

26.3

%

 

457,925

 

26.4

%

General and administrative expenses

 

54,384

 

6.0

%

 

54,488

 

6.4

%

 

114,750

 

6.4

%

 

108,557

 

6.3

%

Depreciation and amortization expenses

 

24,960

 

2.8

%

 

23,332

 

2.7

%

 

49,716

 

2.8

%

 

46,287

 

2.7

%

Impairment of assets and lease termination (income)/expenses

 

(188

)

0.0

%

 

(653

)

-0.1

%

 

1,895

 

0.1

%

 

1,589

 

0.1

%

Acquisition-related contingent consideration, compensation
and amortization expenses

 

1,146

 

0.1

%

 

1,287

 

0.1

%

 

2,267

 

0.1

%

 

2,476

 

0.1

%

Preopening costs

 

6,975

 

0.8

%

 

6,006

 

0.7

%

 

12,855

 

0.7

%

 

9,058

 

0.5

%

Total costs and expenses

 

845,350

 

93.5

%

 

818,699

 

94.5

%

 

1,697,280

 

94.5

%

 

1,650,887

 

95.3

%

Income from operations

 

58,692

 

6.5

%

 

47,471

 

5.5

%

 

97,985

 

5.5

%

 

81,397

 

4.7

%

Interest and other expense, net

 

(2,348

)

(0.3

)%

 

(2,162

)

(0.3

)%

 

(4,109

)

(0.3

)%

 

(4,042

)

(0.2

)%

Income before income taxes

 

56,344

 

6.2

%

 

45,309

 

5.2

%

 

93,876

 

5.2

%

 

77,355

 

4.5

%

Income tax provision

 

3,900

 

0.4

%

 

2,634

 

0.3

%

 

8,241

 

0.4

%

 

6,630

 

0.4

%

Net income

$

52,444

 

5.8

%

$

42,675

 

4.9

%

$

85,635

 

4.8

%

$

70,725

 

4.1

%

 
Basic net income per share

$

1.10

 

$

0.88

 

$

1.79

 

$

1.46

 

Basic weighted average shares outstanding

 

47,702

 

 

48,492

 

 

47,726

 

 

48,593

 

 
Diluted net income per share

$

1.08

 

$

0.87

 

$

1.76

 

$

1.43

 

Diluted weighted average shares outstanding

 

48,775

 

 

49,085

 

 

48,685

 

 

49,296

 

13 Weeks Ended 13 Weeks Ended 26 Weeks Ended 26 Weeks Ended
Selected Segment Information July 2, 2024 July 4, 2023 July 2, 2024 July 4, 2023
Revenues:
The Cheesecake Factory restaurants

$

676,697

 

$

652,481

 

$

1,344,491

 

$

1,308,481

 

North Italia

 

75,514

 

 

65,934

 

 

146,388

 

 

129,237

 

Other FRC

 

73,637

 

 

65,728

 

 

147,866

 

 

134,368

 

Other

 

78,194

 

 

82,027

 

 

156,520

 

 

160,198

 

Total

$

904,042

 

$

866,170

 

$

1,795,265

 

$

1,732,284

 

 
Income/(loss) from operations:
The Cheesecake Factory restaurants

$

101,035

 

$

85,677

 

$

187,106

 

$

164,073

 

North Italia

 

5,507

 

 

6,627

 

 

8,677

 

 

11,233

 

Other FRC

 

3,590

 

 

6,079

 

 

9,882

 

 

14,790

 

Other

 

(51,440

)

 

(50,912

)

 

(107,680

)

 

(108,699

)

Total

$

58,692

 

$

47,471

 

$

97,985

 

$

81,397

 

 
Depreciation and amortization expenses:
The Cheesecake Factory restaurants

$

16,257

 

$

16,235

 

$

33,100

 

$

32,244

 

North Italia

 

2,322

 

 

1,668

 

 

4,293

 

 

3,135

 

Other FRC

 

2,790

 

 

1,809

 

 

5,215

 

 

3,736

 

Other

 

3,591

 

 

3,620

 

 

7,108

 

 

7,172

 

Total

$

24,960

 

$

23,332

 

$

49,716

 

$

46,287

 

 
Impairment of assets and lease termination (income)/expenses:
The Cheesecake Factory restaurants

$

267

 

$

38

 

$

2,126

 

 

131

 

North Italia

 

-

 

 

-

 

 

-

 

 

-

 

Other FRC

 

-

 

 

-

 

 

-

 

 

55

 

Other

 

(455

)

 

(691

)

 

(231

)

 

1,403

 

Total

$

(188

)

$

(653

)

$

1,895

 

$

1,589

 

 
Preopening costs:
The Cheesecake Factory restaurants

$

2,374

 

$

3,091

 

$

4,132

 

$

4,539

 

North Italia

 

1,412

 

 

618

 

 

3,414

 

 

1,064

 

Other FRC

 

2,186

 

 

1,999

 

 

3,910

 

 

2,720

 

Other

 

1,003

 

 

298

 

 

1,399

 

 

735

 

Total

$

6,975

 

$

6,006

 

$

12,855

 

$

9,058

 

 
13 Weeks Ended 13 Weeks Ended 26 Weeks Ended 26 Weeks Ended
The Cheesecake Factory restaurants operating information: July 2, 2024 July 4, 2023 July 2, 2024 July 4, 2023
Comparable restaurant sales vs. prior year

 

1.4

%

 

1.5

%

 

0.4

%

 

3.6

%

Restaurants opened during period

 

1

 

 

1

 

 

1

 

 

1

 

Restaurants open at period-end

 

217

 

 

211

 

 

217

 

 

211

 

Restaurant operating weeks

 

2,808

 

 

2,734

 

 

5,615

 

 

5,471

 

 
North Italia operating information:
Comparable restaurant sales vs. prior year

 

2

%

 

8

%

 

3

%

 

8

%

Restaurants opened during period

 

1

 

 

-

 

 

3

 

 

-

 

Restaurants open at period-end

 

39

 

 

33

 

 

39

 

 

33

 

Restaurant operating weeks

 

499

 

 

429

 

 

979

 

 

858

 

 
Other Fox Restaurant Concepts (FRC) operating information:(1)
Restaurants opened during period

 

1

 

 

2

 

 

3

 

 

3

 

Restaurants open at period-end

 

43

 

 

37

 

 

43

 

 

37

 

Restaurant operating weeks

 

549

 

 

462

 

 

1,079

 

 

913

 

 
Other operating information:(2)
Restaurants opened during period

 

2

 

 

-

 

 

3

 

 

1

 

Restaurants open at period-end

 

41

 

 

40

 

 

41

 

 

40

 

Restaurant operating weeks

 

520

 

 

520

 

 

1,036

 

 

1,035

 

 
Number of company-owned restaurants:
The Cheesecake Factory

 

217

 

North Italia

 

39

 

Other FRC

 

43

 

Other

 

41

 

Total

 

340

 

 
Number of international-licensed restaurants:
The Cheesecake Factory

 

34

 

 
(1) The Other FRC segment includes all FRC brands except Flower Child.
(2) The Other segment includes the Flower Child, Grand Lux Cafe and Social Monk Asian Kitchen concepts, as well as the Company's third-party bakery, international and consumer packaged goods businesses, unallocated corporate expenses and gift card costs.
 
Selected Consolidated Balance Sheet Information July 2, 2024 January 2, 2024
Cash and cash equivalents

$

40,654

$

56,290

Long-term debt, net of issuance costs (1)

 

471,054

 

470,047

(1) Includes $341.1 million net balance of 0.375% convertible senior notes due 2026 (principal amount of $345 million less $3.9 million in unamortized issuance costs) and $130 million drawn on the Company's revolving credit facility. The unamortized issuance costs were recorded as a contra-liability and netted with long-term debt on the Condensed Consolidated Balance Sheet and are being amortized as interest expense.

Reconciliation of Non-GAAP Results to GAAP Results

In addition to the results provided in accordance with accounting principles generally accepted in the United States of America (“GAAP”) in this press release, the Company is providing non-GAAP measurements which present net income and net income per share excluding the impact of certain items. The non-GAAP measurements are intended to supplement the presentation of the Company’s financial results in accordance with GAAP. These non-GAAP measures are calculated by eliminating from net income and diluted net income per share the impact of items the Company does not consider indicative of its ongoing operations. The Company uses these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons.

The Cheesecake Factory Incorporated
Reconciliation of Non-GAAP Financial Measures
(unaudited; in thousands, except per share data)
 
13 Weeks Ended 13 Weeks Ended 26 Weeks Ended 26 Weeks Ended
July 2, 2024 July 4, 2023 July 2, 2024 July 4, 2023
 
Net income (GAAP)

$

52,444

 

$

42,675

 

$

85,635

 

$

70,725

 

Impairment of assets and lease termination (income)/expenses(1)

 

(188

)

 

(653

)

 

1,895

 

 

1,589

 

Acquisition-related contingent consideration,
compensation and amortization expenses(2)

 

1,146

 

 

1,287

 

 

2,267

 

 

2,476

 

Tax effect of adjustments(3)

 

(249

)

 

(165

)

 

(1,082

)

 

(1,057

)

Adjusted net income (non-GAAP)

$

53,153

 

$

43,144

 

$

88,715

 

$

73,733

 

 
Diluted net income per share (GAAP)

$

1.08

 

$

0.87

 

$

1.76

 

$

1.43

 

Impairment of assets and lease termination (income)/expenses

 

(0.00

)

 

(0.01

)

 

0.04

 

 

0.03

 

Acquisition-related contingent consideration,
compensation and amortization expenses

 

0.02

 

 

0.03

 

 

0.05

 

 

0.05

 

Tax effect of adjustments

 

(0.01

)

 

(0.00

)

 

(0.02

)

 

(0.02

)

Adjusted net income per share (non-GAAP)(4)

$

1.09

 

$

0.88

 

$

1.82

 

$

1.50

 

(1) A detailed breakdown of impairment of assets and lease termination (income)/expenses recorded in the thirteen and twenty-six weeks ended July 2, 2024 and July 4, 2023 can be found in the Selected Segment Information table.
(2) Represents changes in the fair value of the deferred consideration and contingent consideration and compensation liabilities related to the North Italia and FRC acquisition, as well as amortization of acquired definite-lived licensing agreements.
(3) Based on the federal statutory rate and an estimated blended state tax rate, the tax effect on all adjustments assumes a 26% tax rate for the fiscal 2024 and 2023 periods.
(4) Adjusted net income per share may not add due to rounding.

 

Etienne Marcus

(818) 871-3000

investorrelations@thecheesecakefactory.com

Source: The Cheesecake Factory Incorporated

FAQ

What were The Cheesecake Factory's (CAKE) Q2 2024 revenue and earnings?

The Cheesecake Factory reported total revenues of $904.0 million and net income of $52.4 million in Q2 2024. Diluted earnings per share were $1.08, while adjusted EPS was $1.09.

How many new restaurants did The Cheesecake Factory (CAKE) open in Q2 2024?

The Cheesecake Factory opened five new restaurants in Q2 2024, including one Cheesecake Factory, one North Italia, two Flower Child locations, and one Culinary Dropout.

What was The Cheesecake Factory's (CAKE) comparable restaurant sales growth in Q2 2024?

Comparable restaurant sales at The Cheesecake Factory restaurants increased 1.4% year-over-year in Q2 2024.

What is The Cheesecake Factory's (CAKE) restaurant opening target for fiscal 2024?

The Cheesecake Factory aims to open up to 22 new restaurants in fiscal 2024, including up to three Cheesecake Factory restaurants, six to seven North Italia restaurants, six to seven Flower Child locations, and seven to eight other Fox Restaurant Concept locations.

Cheesecake Factory (The)

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