The Cheesecake Factory Updates Second Quarter Fiscal 2017 Comparable Sales Outlook
June 13 2017 - 8:00AM
Business Wire
The Cheesecake Factory Incorporated (NASDAQ: CAKE) today updated
its outlook for second quarter fiscal 2017 comparable sales ahead
of two conference presentations this week. The Company now expects
comparable sales at The Cheesecake Factory restaurants for the
second quarter of fiscal 2017 to be down approximately 1%. The
Company expects this to impact second quarter margins and earnings
per share.
“We have continued to outperform the casual dining industry
quarter to date, with over half of our regions posting positive
comparable sales for the period, including key markets of
California, Texas and Florida,” said David Overton, Chairman and
Chief Executive Officer. “More broadly however, we have seen
heightened volatility in week to week sales trends, indicative of
uncertainty on the part of many consumers. Specifically, we have
seen pockets of softness as we moved through the quarter, notably
in the East and Midwest where we also faced unfavorable weather
that reduced patio usage.”
Overton continued, “We believe The Cheesecake Factory brand is
as strong as ever and our underlying operating metrics remain
solid. We are managing the business for the long term, continuing
to provide delicious and memorable dining experiences for our
guests, while executing on our diversified growth drivers and
effectively allocating our strong cash flow to position the Company
to generate sustained shareholder returns.”
The Company will present at the William Blair 37th Annual Growth
Stock Conference in Chicago today at 8:50 a.m. Central Time and the
Piper Jaffray 37th Annual Consumer Conference in New York City
tomorrow at 9:05 a.m. Eastern Time. The presentations will be
webcast on the Company’s website at
investors.thecheesecakefactory.com. A replay of the webcasts
will be available following the live presentations.
About The Cheesecake Factory Incorporated
The Cheesecake Factory Incorporated created the upscale casual
dining segment in 1978 with the introduction of its namesake
concept. The Company, through its subsidiaries, owns and operates
207 full-service, casual dining restaurants throughout the U.S.A.
and Puerto Rico, including 193 restaurants under The Cheesecake
Factory® mark; 13 restaurants under the Grand Lux Cafe® mark; and
one restaurant under the Rock Sugar Pan Asian Kitchen® mark.
Internationally, 16 The Cheesecake Factory® restaurants operate
under licensing agreements. The Company’s bakery division operates
two bakery production facilities, in Calabasas Hills, CA and Rocky
Mount, NC, that produce quality cheesecakes and other baked
products for its restaurants, international licensees and
third-party bakery customers. In 2017, the Company was named to the
FORTUNE Magazine “100 Best Companies to Work For®” list for the
fourth consecutive year. To learn more about the Company, visit
www.thecheesecakefactory.com.
FORTUNE and FORTUNE 100 Best Companies to Work For® are
registered trademarks of Time Inc. and are used under license. From
FORTUNE Magazine, March 15, 2017 ©2017 Time Inc. Used under
license. FORTUNE and Time Inc. 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. These 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, including
uncertainties related to the Company’s ability to: deliver
consistent and dependable comparable sales results over a sustained
period of time; deliver increases in guest traffic; provide a
differentiated experience to guests; outperform the casual dining
industry and increase its market share; leverage sales increases
and manage flow through; increase margins; grow earnings; remain
relevant to consumers; attract and retain qualified management and
other staff; increase shareholder value; profitably expand its
concepts domestically and in Canada, and work with its licensees to
expand its concept internationally; support the growth of North
Italia and Flower Child restaurants; develop a fast casual concept;
utilize its capital effectively and continue to repurchase its
shares; and factors outside of the Company’s control including:
economic and political conditions that impact consumer confidence
and spending; acceptance and success of The Cheesecake Factory in
international markets; the risks of doing business abroad through
Company-owned restaurants and/or licensees; foreign exchange rates
and potential changes in NAFTA and cross border taxation; changes
in unemployment rates; the economic health of the Company’s
landlords and other tenants in retail centers in which its
restaurants are located; the economic health of suppliers,
licensees, vendors and other third parties providing goods or
services to the Company; 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; and other risks and uncertainties detailed from time to
time in the Company’s filings with the Securities and Exchange
Commission (“SEC”). Investors are cautioned that forward-looking
statements are not guarantees of future performance and that undue
reliance should not be placed on such statements. 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 securities laws.
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.
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version on businesswire.com: http://www.businesswire.com/news/home/20170613005501/en/
The Cheesecake FactoryStacy Feit,
818-871-3000investorrelations@thecheesecakefactory.com
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