Cheesecake Factory Reports 28th Consecutive Quarter of Positive Sales
The Cheesecake Factory Incorporated reported financial results for the fourth quarter of fiscal 2016, which ended on January 3, 2017.
Total revenues were $603.1 million in the fourth quarter of fiscal 2016 as compared to $526.8 million in the fourth quarter of fiscal 2015. The fourth quarter of fiscal 2016 included 14 weeks compared to 13 weeks in the fourth quarter of fiscal 2015; the additional week in fiscal 2016 contributed approximately $54.7 million of sales. Net income and diluted net income per share were $32.4 million and $0.66, respectively, in the fourth quarter of fiscal 2016.
The company recorded a pre-tax, non-cash charge of $0.1 million during the fourth quarter of fiscal 2016 related to the planned relocation of one The Cheesecake Factory restaurant. Excluding this item, net income and diluted net income per share were $32.4 million and $0.67, respectively.
Comparable restaurant sales at The Cheesecake Factory restaurants increased 1.1 percent in the fourth quarter of fiscal 2016 (14 weeks vs. 14 weeks).
“We delivered our 28th consecutive quarter of positive comparable sales, marking seven years of strong financial performance and meaningful shareholder value creation,” says David Overton, chairman and chief executive officer. “We significantly outperformed the casual dining industry again during the fourth quarter as we continued to take market share.
“We delivered on all of our objectives in 2016, including producing solid comparable sales performance, achieving our domestic unit growth goal, expanding our international presence to a total of 15 locations and increasing operating margins, all of which contributed to approximately 20 percent earnings per share growth. By maintaining our differentiated positioning and commitment to operational excellence, we believe we will uphold our leadership position in the casual dining industry in 2017 and beyond.”
The company opened five The Cheesecake Factory restaurants and one Grand Lux Cafe during the fourth quarter of fiscal 2016, meeting its objective to open as many as eight company-owned restaurants domestically in fiscal 2016.
Internationally, two The Cheesecake Factory restaurants opened in the fourth quarter of fiscal 2016, including the first location in Qatar and the third location in Mexico, for a total of four locations opened under licensing agreements during the year, as expected.