Midday Market Minute: Cheesecake Factory Results Weaker Than Expected

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NEW YORK (AP) - Cheesecake Factory (CAKE) shares may be under pressure Thursday following the restaurant chain's weaker-than-expected fiscal fourth-quarter performance.

The company said late Wednesday that it earned $22.1 million, or 40 cents per share, for the period ended Jan. 1. That's down from $29.9 million, or 54 cents per share, a year earlier.

Excluding charges totaling 11 cents per share, earnings were 51 cents per share. Analysts surveyed by FactSet expected 52 cents per share.

Cheesecake FactoryRevenue fell 3 percent to $464.7 million from $477.7 million. There was one less week in the current quarter. Analysts expected higher revenue of $468.7 million.

Shares of Cheesecake Factory dropped in after-hours trading Wednesday.

The company also announced that it entered an exclusive licensing deal with restaurant operator Alsea SAB de CV to build and run some Cheesecake Factory restaurants in Latin America. Terms were not disclosed.

The agreement includes the development of at least 12 restaurants over an eight-year period in Mexico and Chile. There is the possibility to expand the deal to include Argentina, Brazil, Colombia and Peru.

The first restaurant is expected to open in Mexico City by early fiscal 2014.

The move is part of Cheesecake Factory's plan to expand globally. The company opened some of its restaurants in the Middle East last year.

Cheesecake Factory Inc. runs 177 casual dining restaurants in the U.S., including 162 restaurants under The Cheesecake Factory name; 14 restaurants under the Grand Lux Cafe name and one restaurant under the RockSugar Pan Asian Kitchen name. It has three The Cheesecake Factory restaurants operating under a licensing agreement. The company also runs two bakery production facilities in Calabasas Hills, Calif. and Rocky Mount, N.C.


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79 Comments

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dohc73

Welcome to Cheesecake Factory, how can we make your belly fat grow today? Awwe, your kids are so cute, and their screaming voices echo nicely in our overbuilt restaurant space. Would they like a pint-sized sugary soda to make them more annoying??

February 22 2013 at 6:47 PM Report abuse rate up rate down Reply
dtoigo

Too expensive to eat at a coffee shop. Their food is not worth it,

February 22 2013 at 1:44 PM Report abuse rate up rate down Reply
Brian

I like Cheesecake Factory food. I hope to go to the Pasadena branch one day and meet Penny from the Big Bang Theory there!

February 22 2013 at 1:03 PM Report abuse rate up rate down Reply
kbprime2

Cheesecake Factory was a B+ at one time and the one close to us is always busy but I'm not sure why? It has declined to a "C". The era of the $30.00 dollor burger has been here for quite some time, i.e. Five Guys, Smash Burger, Jinky's and they're all way overpriced. We may as well drink our highest priced commodity, GASOLINE. It isn't the ingredients, or the size of a menu, it's trucking it there...

February 22 2013 at 12:26 PM Report abuse rate up rate down Reply
Herb

ITS A LITTLE PRICY AND SERVICE HAS DROPPED, WITH THE ECO LEVELS RIGHT NOW THEY NEED TO HAVE A DIFFERENT MENU WITH LOWER PRICES AND CALORIES OF COURSE THE SIZE OF PORTIONS.JUST SLIM DOWN A LITTLE AND WATCH YOUR OPERATING COST.

February 22 2013 at 12:15 PM Report abuse rate up rate down Reply
Kat

Their menu is too big, which means you have to have all those ingredients on hand. I stopped buying cheesecake when they cut the portion size! If I'm going to pay 8.00 for a slice of cheesecake, I better get two servings worth!!!

February 22 2013 at 12:12 PM Report abuse rate up rate down Reply
arenadood

One thing they are doing right is them being the meeting place where the Characters eat and work. You cannot get better advertising then on a long running TV hit show, The Big Bang Theory.

February 22 2013 at 11:10 AM Report abuse rate up rate down Reply
andromeda2mly

this place is just too expensive, it should be called '' HOME OF THE $20 HAMBURGER !''

February 22 2013 at 11:06 AM Report abuse rate up rate down Reply
1 reply to andromeda2mly's comment
mmwwil

The food is lousy. People who think the food is good are really funny, They do not have a clue aboiut good food.

February 22 2013 at 1:33 PM Report abuse rate up rate down Reply
Henry

Maybe the people commenting here haven't been to the Grocery Store lately. Hey folks! Thanks to Global Climate Change, everything is going up. In case you forgot, we had the worst drought on record in the food producing states last year and that pushes the price of ALL food up! Meanwhile Wall Street and the Commodities markets continue to SUCK YOUR POCKETS DRY! The Cheesecake Factory will just be another business down the drain to the Vulture 1%ers who will just make more money off its demise, meanwhile all the employees are out of work which pushes the econonmy further down. Demand that the President pick a DIFFERENT nominee to the DOE than the Fracker he is considering. Demand your Congressional Representatives support http://www.bernie.org/wp-content/uploads/2013/02/Sanders_Boxer-Climate-Legislation.pdf

February 22 2013 at 10:57 AM Report abuse rate up rate down Reply
Pootski

The only Cheesecake Factory by us is always packed. Always - doesn't matter what day or time. People are waiting outside to get in. We've gone once, waited an hr and a half to get in, thinking we were in for a great meal. It wasn't very good. And it was way too expensive. I doubt if we'll ever go back. I don't see what all those other people like about it.

February 22 2013 at 10:51 AM Report abuse rate up rate down Reply