Cheesecake Factory Misses Street’s Forecast, Blames Superstorm Sandy (CAKE)
Shares of casual dining chain, The Cheesecake Factory Inc. (NASDAQ: CAKE) fell almost 1.50% in aftermarket trading on Wednesday after it reported lower than expected fiscal fourth-quarter revenue, citing the damage caused by hurricane Sandy, which hit the North East cost in last week of October.
The Calabasas Hill, California-based company said that net income during the fiscal fourth quarter came at $22 million or 40 cents a share, compared with $29.9 million or54 cents a share, in the year earlier quarter.
Revenue during the period plunged almost 3% to $465 million. Stripping out onetime items, Cheesecake reported net income of 51 cents a share. Analysts polled by Thomson Reuters were expecting earnings of 52 cents a share on revenue of lower than $469 million.
Same-store-sales, a key gauge on restaurant chain’s performance since it excludes the sales impact from those stores that were shut or opened less than12 months ago, rose 0.9% at Cheesecake Factory and Grand Lux Café stores. The Company said that same-store-sales would have grown by 1.5% had there been no impact on business from superstorm Sandy.
During the recently ended quarter, Cheesecake opened four new restaurants in the U.S and two in the Middle East. In all, the Company opened 11 new restaurants in the fiscal 2012 while it shuttered three Grand Lux Café restaurants.
Speaking to analysts in a conference call, Cheesecake’s Chief Executive, David Overton said that the company intends to open same number of restaurants in the fiscal 2013.
“We expect 2013 to be another year of growth, through the expansion of our restaurants, both domestically and internationally. Strategically, we will continue to focus on food quality and service as key differentiators and business drivers, contributing to our expectation for higher comparable restaurant sales, higher earnings per share and increasing shareholder value”, added , Overton in a statement.