Cheesecake Factory Misses Quarterly ForecastsWednesday, July 24, 2013
Cheesecake Factory Inc. on Wednesday reported results that narrowly missed analysts’ expectations for its fiscal second quarter.
The Calabasas operator of casual dining restaurants reported net income of $28.6 million (54 cents a share) for the quarter ended July 2, compared to $28.4 million (53 cents) in the same period a year earlier. Revenue rose 3.5 percent to $470 million.
The company missed analysts’ earnings forecasts of 57 cents a share on revenue of $473 million, according to Thomson Financial.
Overall, comparable restaurant sales at Cheesecake Factory and Grand Lux Cafe outlets rose 0.8 percent.
“We delivered our 14th consecutive quarter of positive comparable sales in the second quarter, and we continued to outperform the industry,” said Chief Executive David Overton, in a prepared statement.
In its earnings report, the company also announced a 17 percent increase to its quarterly dividend to 14 cents a share and plans to allocate $125 million toward share repurchases in the second half of the year.
Cheesecake shares earlier closed down 65 cents, or 1.5 percent, to $41.89 on the Nasdaq, then dropped 5.7 percent in after-market trading.