Cheesecake Factory recently reported a fourth-quarter profit, showcasing the resilience of demand at its restaurants despite challenging conditions.
In the 13 weeks ended Jan. 2, the Calabasas Hills-based chain experienced a notable turnaround, posting a profit of $12.7 million, equivalent to 26 cents per share. This positive shift contrasts with the prior year’s loss of $3.3 million or 7 cents per share.
Adjusting for specific one-time items, the adjusted earnings came in at 80 cents per share, exceeding the 73 cents predicted by analysts. The revenue for the quarter decreased slightly to $877 million from $892.8 million in the previous year, although it surpassed the $876.2 million anticipated by analysts. It’s important to note that the fourth quarter of fiscal 2023 had one less week compared to the prior-year period.
Strong Comparable Restaurant Sales Growth
Despite these factors, Cheesecake Factory managed to achieve a 2.5% increase in comparable restaurant sales from the same period the year before. The company faced challenges during this quarter, including a pre-tax expense of $35.6 million due to impairment of assets, lease termination expenses, and the acquisition of Fox Restaurant Concepts.
CEO’s Optimistic Remarks
Chief Executive David Overton expressed satisfaction with the results, highlighting that the company’s comparable sales and traffic surpassed those of the casual dining industry. This positive performance indicates the resilience and strength of the Cheesecake Factory brand.
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