The Cheesecake Factory Reports Record Financial Results For the Quarter Ended April 3, 2001

Apr 19, 2001, 01:00 ET from The Cheesecake Factory Incorporated

    CALABASAS HILLS, Calif., April 19 /PRNewswire/ -- The Cheesecake Factory
 Incorporated (Nasdaq:   CAKE) today reported record financial results for the
 first quarter of fiscal 2001.
 
     Highlights for the quarter ended April 3, 2001:
 
     -- Total revenues up 25% to $120.5 million
     -- Net income up 40% to $8.4 million
     -- Diluted net income per share up 32% to $0.25
     -- Comparable restaurant sales up 2.4%
     -- Average sales per restaurant operating week up 4.8% to $197,800
 
     "We were very pleased with our excellent financial performance for the
 first quarter of fiscal 2001," said David Overton, Chairman and CEO.  "Our
 2.4% increase in comparable restaurant sales for the quarter represented our
 35th consecutive quarter of positive comparisons on that measure.  This
 increase was achieved in spite of colder, wetter weather conditions compared
 to the same quarter last year in many of the Company's markets, including our
 core Southern California market where 25% of our restaurant seats are located
 on outdoor patios.  Our impressive 4.8% increase in average sales per
 restaurant operating week for the quarter reflects the continuing strong sales
 volumes of successful new restaurants opened during the past 12 months in
 addition to our solid base of existing restaurants."
     The Company successfully opened two restaurants during the first quarter
 of fiscal 2001 with strong initial sales volumes -- Schaumburg, Illinois
 (Woodfield Mall) and Phoenix, Arizona (Biltmore Fashion Park).  Current plans
 call for the opening of a restaurant in Winter Park, Florida in May 2001 and
 two additional restaurants (Seattle, Washington and Sherman Oaks, California)
 either late in the second quarter or early in the third quarter of fiscal
 2001, depending on the progress of construction.  The Company's primary growth
 objective for fiscal 2001 is to increase total restaurant operating weeks by
 24% to 25%, or as many as 10 to 11 restaurant openings for the year.
 
     The Company's quarterly investor conference call will be available to the
 public live through the Internet at 2:00 PM Pacific Time on Thursday, April
 19, 2001.  To access, select the "webcast" option under the "financials"
 section of the Company's website located at www.thecheesecakefactory.com at
 least 15 minutes prior to the start of the call to register and download any
 necessary audio software.  A replay of the call will be available at the
 Company's website until May 4, 2001.
 
     This press release contains forward-looking statements within the meaning
 of the Private Securities Litigation Reform Act of 1995.  Forward-looking
 statements involve known and unknown risks, uncertainties and other factors
 that may cause the actual results, performance or achievements of the Company
 to be materially different from any future results, performance or
 achievements expressed or implied by forward-looking statements.  Investors
 are cautioned that forward-looking statements are not guarantees of future
 performance and that undue reliance should not be placed on such statements.
 Forward-looking statements speak only as of the dates on which they were made.
 The Company undertakes no obligation to publicly update or revise any forward-
 looking statements or to make any other forward-looking statements, whether as
 a result of new information, future events or otherwise unless required to do
 so by the securities laws.  Investors are referred to the full discussion of
 risks and uncertainties associated with forward-looking statements contained
 in the Company's filings with the Securities and Exchange Commission.
 
     The Cheesecake Factory Incorporated operates 42 upscale, casual dining
 restaurants under The Cheesecake Factory(R) mark that offer an extensive menu
 of more than 200 items with an average check of approximately $15.40.  The
 Company also operates a bakery production facility that produces over
 50 varieties of quality cheesecakes and other baked products for the Company's
 restaurants and for third-party foodservice operators and distributors.  Grand
 Lux Cafe(R), the Company's upscale casual dining restaurant created for the
 Venetian Resort-Hotel-Casino in Las Vegas, Nevada, was opened in May 1999.
 The Company operates two self-service, limited menu foodservice operations
 under The Cheesecake Factory Express(R) mark inside the DisneyQuest(R) family
 entertainment concepts in Orlando, Florida and Chicago, Illinois.
 Additionally, the Company licenses three bakery cafe outlets to another
 foodservice operator under The Cheesecake Factory Bakery Cafe(R) mark.
 
 
              The Cheesecake Factory Incorporated and Subsidiaries
                       Consolidated Financial Statements
        (unaudited; in thousands, except per share and statistical data)
 
     Consolidated Statements           13 Weeks Ended        13 Weeks Ended
      of Operations                     April 3, 2001        March 28, 2000
                                     Amounts   Percents     Amounts  Percents
     Revenues:
      Restaurant sales               $112,359     93.2%    $89,465     93.1%
      Bakery sales to other
       foodservice operators,
       retailers and distributors       8,162      6.8%      6,646      6.9%
         Total revenues               120,521    100.0%     96,111    100.0%
     Costs and expenses:
      Restaurant cost of sales (1)     28,766     23.9%     22,560     23.5%
      Bakery cost of sales (2)          3,927      3.3%      2,787      2.9%
      Labor                            37,297     30.9%     29,694     30.9%
      Other operating expenses         27,635     22.9%     21,444     22.3%
      General and administrative        6,327      5.3%      6,810      7.1%
      Depreciation and amortization     3,881      3.2%      3,103      3.2%
      Preopening costs                  1,428      1.2%      1,105      1.1%
         Total costs and expenses     109,261     90.7%     87,503     91.0%
     Income from operations            11,260      9.3%      8,608      9.0%
     Interest income, net               1,348      1.1%        910      0.9%
     Other income, net                    471      0.4%         68      0.1%
     Income before income taxes        13,079     10.8%      9,586     10.0%
     Income tax provision               4,708      3.9%      3,619      3.8%
     Net income                        $8,371      6.9%     $5,967      6.2%
 
     Basic net income per share (3)     $0.27                $0.20
     Basic weighted average
      shares outstanding (3)           31,514               30,276
 
     Diluted net income per share (3)   $0.25                $0.19
     Diluted weighted average
      shares outstanding (3)           33,160               32,220
 
      Notes:
      (1) Consists of restaurant food, beverage and dessert costs.
      (2) Consists of ingredient, packaging and supply costs.
      (3) Reflects a 3-for-2 stock split effective June 8, 2000.
 
 
     Selected Consolidated Balance
      Sheet Information                        April 3, 2001  January 2, 2001
 
     Cash and marketable securities               $78,242        $85,314
     Total assets                                 297,032        288,392
     Total liabilities                             47,667         47,556
     Stockholders' equity                         249,365        240,836
 
 
                                              13 Weeks Ended  13 Weeks Ended
     Supplemental Information                  April 3, 2001  March 28, 2000
 
     Comparable restaurant sales % change            2.4%           4.8%
     Avg. sales per restaurant
      operating week % change                        4.8%           1.9%
     Restaurant cost of sales
      % of restaurant sales                         25.6%          25.2%
     Bakery cost of sales % of
      bakery sales                                  48.1%          41.9%
     Operating income margin
      before preopening costs                       10.5%          10.1%
     Restaurants opened during period                   2              1
     Restaurants open at period-end                    45             37
     Restaurant operating weeks                       568            474
 
 

SOURCE The Cheesecake Factory Incorporated
    CALABASAS HILLS, Calif., April 19 /PRNewswire/ -- The Cheesecake Factory
 Incorporated (Nasdaq:   CAKE) today reported record financial results for the
 first quarter of fiscal 2001.
 
     Highlights for the quarter ended April 3, 2001:
 
     -- Total revenues up 25% to $120.5 million
     -- Net income up 40% to $8.4 million
     -- Diluted net income per share up 32% to $0.25
     -- Comparable restaurant sales up 2.4%
     -- Average sales per restaurant operating week up 4.8% to $197,800
 
     "We were very pleased with our excellent financial performance for the
 first quarter of fiscal 2001," said David Overton, Chairman and CEO.  "Our
 2.4% increase in comparable restaurant sales for the quarter represented our
 35th consecutive quarter of positive comparisons on that measure.  This
 increase was achieved in spite of colder, wetter weather conditions compared
 to the same quarter last year in many of the Company's markets, including our
 core Southern California market where 25% of our restaurant seats are located
 on outdoor patios.  Our impressive 4.8% increase in average sales per
 restaurant operating week for the quarter reflects the continuing strong sales
 volumes of successful new restaurants opened during the past 12 months in
 addition to our solid base of existing restaurants."
     The Company successfully opened two restaurants during the first quarter
 of fiscal 2001 with strong initial sales volumes -- Schaumburg, Illinois
 (Woodfield Mall) and Phoenix, Arizona (Biltmore Fashion Park).  Current plans
 call for the opening of a restaurant in Winter Park, Florida in May 2001 and
 two additional restaurants (Seattle, Washington and Sherman Oaks, California)
 either late in the second quarter or early in the third quarter of fiscal
 2001, depending on the progress of construction.  The Company's primary growth
 objective for fiscal 2001 is to increase total restaurant operating weeks by
 24% to 25%, or as many as 10 to 11 restaurant openings for the year.
 
     The Company's quarterly investor conference call will be available to the
 public live through the Internet at 2:00 PM Pacific Time on Thursday, April
 19, 2001.  To access, select the "webcast" option under the "financials"
 section of the Company's website located at www.thecheesecakefactory.com at
 least 15 minutes prior to the start of the call to register and download any
 necessary audio software.  A replay of the call will be available at the
 Company's website until May 4, 2001.
 
     This press release contains forward-looking statements within the meaning
 of the Private Securities Litigation Reform Act of 1995.  Forward-looking
 statements involve known and unknown risks, uncertainties and other factors
 that may cause the actual results, performance or achievements of the Company
 to be materially different from any future results, performance or
 achievements expressed or implied by forward-looking statements.  Investors
 are cautioned that forward-looking statements are not guarantees of future
 performance and that undue reliance should not be placed on such statements.
 Forward-looking statements speak only as of the dates on which they were made.
 The Company undertakes no obligation to publicly update or revise any forward-
 looking statements or to make any other forward-looking statements, whether as
 a result of new information, future events or otherwise unless required to do
 so by the securities laws.  Investors are referred to the full discussion of
 risks and uncertainties associated with forward-looking statements contained
 in the Company's filings with the Securities and Exchange Commission.
 
     The Cheesecake Factory Incorporated operates 42 upscale, casual dining
 restaurants under The Cheesecake Factory(R) mark that offer an extensive menu
 of more than 200 items with an average check of approximately $15.40.  The
 Company also operates a bakery production facility that produces over
 50 varieties of quality cheesecakes and other baked products for the Company's
 restaurants and for third-party foodservice operators and distributors.  Grand
 Lux Cafe(R), the Company's upscale casual dining restaurant created for the
 Venetian Resort-Hotel-Casino in Las Vegas, Nevada, was opened in May 1999.
 The Company operates two self-service, limited menu foodservice operations
 under The Cheesecake Factory Express(R) mark inside the DisneyQuest(R) family
 entertainment concepts in Orlando, Florida and Chicago, Illinois.
 Additionally, the Company licenses three bakery cafe outlets to another
 foodservice operator under The Cheesecake Factory Bakery Cafe(R) mark.
 
 
              The Cheesecake Factory Incorporated and Subsidiaries
                       Consolidated Financial Statements
        (unaudited; in thousands, except per share and statistical data)
 
     Consolidated Statements           13 Weeks Ended        13 Weeks Ended
      of Operations                     April 3, 2001        March 28, 2000
                                     Amounts   Percents     Amounts  Percents
     Revenues:
      Restaurant sales               $112,359     93.2%    $89,465     93.1%
      Bakery sales to other
       foodservice operators,
       retailers and distributors       8,162      6.8%      6,646      6.9%
         Total revenues               120,521    100.0%     96,111    100.0%
     Costs and expenses:
      Restaurant cost of sales (1)     28,766     23.9%     22,560     23.5%
      Bakery cost of sales (2)          3,927      3.3%      2,787      2.9%
      Labor                            37,297     30.9%     29,694     30.9%
      Other operating expenses         27,635     22.9%     21,444     22.3%
      General and administrative        6,327      5.3%      6,810      7.1%
      Depreciation and amortization     3,881      3.2%      3,103      3.2%
      Preopening costs                  1,428      1.2%      1,105      1.1%
         Total costs and expenses     109,261     90.7%     87,503     91.0%
     Income from operations            11,260      9.3%      8,608      9.0%
     Interest income, net               1,348      1.1%        910      0.9%
     Other income, net                    471      0.4%         68      0.1%
     Income before income taxes        13,079     10.8%      9,586     10.0%
     Income tax provision               4,708      3.9%      3,619      3.8%
     Net income                        $8,371      6.9%     $5,967      6.2%
 
     Basic net income per share (3)     $0.27                $0.20
     Basic weighted average
      shares outstanding (3)           31,514               30,276
 
     Diluted net income per share (3)   $0.25                $0.19
     Diluted weighted average
      shares outstanding (3)           33,160               32,220
 
      Notes:
      (1) Consists of restaurant food, beverage and dessert costs.
      (2) Consists of ingredient, packaging and supply costs.
      (3) Reflects a 3-for-2 stock split effective June 8, 2000.
 
 
     Selected Consolidated Balance
      Sheet Information                        April 3, 2001  January 2, 2001
 
     Cash and marketable securities               $78,242        $85,314
     Total assets                                 297,032        288,392
     Total liabilities                             47,667         47,556
     Stockholders' equity                         249,365        240,836
 
 
                                              13 Weeks Ended  13 Weeks Ended
     Supplemental Information                  April 3, 2001  March 28, 2000
 
     Comparable restaurant sales % change            2.4%           4.8%
     Avg. sales per restaurant
      operating week % change                        4.8%           1.9%
     Restaurant cost of sales
      % of restaurant sales                         25.6%          25.2%
     Bakery cost of sales % of
      bakery sales                                  48.1%          41.9%
     Operating income margin
      before preopening costs                       10.5%          10.1%
     Restaurants opened during period                   2              1
     Restaurants open at period-end                    45             37
     Restaurant operating weeks                       568            474
 
 SOURCE  The Cheesecake Factory Incorporated