The Cheesecake Factory Incorporated has reported financial results for the first quarter of fiscal 2011, which ended on March 29, 2011.
Total revenues were $418.8 million in the first quarter of fiscal 2011 as compared to $405.4 million in the prior year first quarter. Net income and diluted net income per share were $20.5 million and $0.34, respectively.
Operating Results
Comparable restaurant sales increased 1.6% at The Cheesecake Factory and Grand Lux Cafe in the first quarter of fiscal 2011 from the first quarter of the prior year. By concept, comparable restaurant sales increased 2.1% at The Cheesecake Factory and decreased 3.8% at the Grand Lux Cafe in the first quarter of fiscal 2011 from the first quarter of fiscal 2010.
“The strong sales trends that we experienced throughout last year continued into the first quarter. We delivered our fifth consecutive quarter of positive comparable sales and increases in guest counts,” said David Overton, Chairman and CEO. “Our leadership in menu innovation, and execution on both food and service, are competitive advantages and are clearly helping us to drive sales. In addition, improvement in our average ticket also contributed to our comparable sales performance this quarter, as beverage sales continue to stabilize.
“We expect to deliver annual, mid-teens earnings per share growth over the next five years. We are confident in our ability to achieve this objective, as we are continuing to attract higher levels of guest traffic and effectively managing our operations to leverage incremental sales,” concluded Overton.
Development
As planned, the Company opened one new The Cheesecake Factory restaurant in the first quarter of fiscal 2011 in Houston, Texas. The Company continues to believe it will open between six and nine new restaurants in fiscal 2011. The remaining units are expected to open during the second half of the year.
Share Repurchases
Consistent with its capital allocation plan targeting at least $100 million in share repurchases in fiscal 2011, the Company repurchased 1,749,120 shares of its common stock during the first quarter of fiscal 2011, returning $50.6 million to shareholders.
The Cheesecake Factory Incorporated created the upscale casual dining segment in 1978 with the introduction of its namesake concept. The Company operates 164 full-service, casual dining restaurants throughout the U.S., including 150 restaurants under The Cheesecake Factory mark; 13 restaurants under the Grand Lux Cafe mark; and one restaurant under the RockSugar Pan Asian Kitchen mark. The Company also operates two bakery production facilities in Calabasas Hills, CA and Rocky Mount, NC that produce over 70 varieties of quality cheesecakes and other baked products.