Cheesecake Factory Inc (CAKE) Reports Q3 2023 Earnings: Revenues Rise to $830.2 Million
Cheesecake Factory Inc (NASDAQ:CAKE) reports Q3 2023 revenues of $830.2 million, up from $784.0 million in Q3 2022.
Net income for Q3 2023 stands at $17.9 million, a stark contrast to the net loss of $2.4 million in the same period last year.
Comparable restaurant sales at The Cheesecake Factory restaurants increased by 2.4% year-over-year.
The company opened two new Cheesecake Factory restaurants during the quarter.
On November 1, 2023, Cheesecake Factory Inc (NASDAQ:CAKE) released its financial results for the third quarter of fiscal 2023, which ended on October 3, 2023. The company reported total revenues of $830.2 million, a significant increase from $784.0 million in the third quarter of fiscal 2022. Net income and diluted net income per share were $17.9 million and $0.37, respectively.
Financial Performance
The company recorded a pre-tax net expense of $1.5 million primarily related to Fox Restaurant Concepts (FRC) acquisition-related expenses. Excluding the after-tax impact of this item, adjusted net income and adjusted net income per share for the third quarter of fiscal 2023 were $19.0 million and $0.39, respectively.
Comparable restaurant sales at The Cheesecake Factory restaurants increased 2.4% year-over-year in the third quarter of fiscal 2023 and increased 12.6% relative to the third quarter of fiscal 2019, on an operating week basis.
Company Commentary
Our third quarter results reflect positive sales trends, as we continued to outperform the broader casual dining industry led by solid comparable sales growth at The Cheesecake Factory restaurants, said David Overton, Chairman and Chief Executive Officer. Our performance amidst the softening sales environment is a testament to the resilient consumer demand for the distinct, high-quality dining experiences we provide our guests. Our tenured operators continued to do an excellent job effectively managing their restaurants and consistently delivering exceptional food quality, service and hospitality to drive sales.
Development and Expansion
During the third quarter of fiscal 2023, the company opened two Cheesecake Factory restaurants, one in Birkdale, NC and the other in Estero, FL. Despite experiencing substantial permitting delays, the company is strategically shifting some restaurant openings into the first quarter of fiscal 2024. As a result, the company now expects to open as many as 16 new restaurants in fiscal 2023 and as many as four to six new restaurants in the first quarter of fiscal 2024.
Liquidity and Capital Allocation
As of October 3, 2023, the company had total available liquidity of $300.5 million, including a cash balance of $64.0 million and availability on its revolving credit facility of $236.5 million. Total principal amount of debt outstanding was $475 million.
The company repurchased approximately 453,400 shares of its stock at a cost of $14.6 million in the third quarter of fiscal 2023. In addition, the companys Board of Directors has declared a quarterly dividend of $0.27 per share to be paid on November 28, 2023 to shareholders of record at the close of business on November 15, 2023.
Explore the complete 8-K earnings release (here) from Cheesecake Factory Inc for further details.
This article first appeared on GuruFocus.
