91.1 F
San Fernando
Thursday, Mar 28, 2024

Cheesecake President Quits; Firm Logged Tough Year

The president and chief operating office of Calabasas-based The Cheesecake Factory Inc. will step down next month. Peter J. D’Amelio announced Jan. 16 that he would resign Feb. 2, citing personal reasons. “He wanted to move back east to be with his family and his wife’s family,” said Howard Gordon, the company’s senior vice president of business development and marketing. D’Amelio, whose total annual compensation was listed at $517,472, was named to the position in April 2004. He joined the company in 1990 as a restaurant manager, later becoming president and chief operating officer of Cheesecake’s Grand Lux Caf & #233; operations. A search for D’Amelio’s replacement is under way, Gordon said. The four regional vice presidents who reported to D’Amelio will now fall under CEO David Overton. The D’Amelio resignation comes as the 123-restaurant chain known for its liberal portions recovers from a dreary year of financial returns. Third quarter net income dropped 16 percent to $18.1 million from the year previous, which the company credited to slower sales at restaurants open a year. Its stock option practices last year also came under fire from Nasdaq, which threatened to de-list the company. (Cheesecake eventually restated a handful of financial reports and was deemed in compliance.) Fiscal 2006 returns also leveled out towards the end of the cycle, with revenues increasing about 10 percent in the fourth quarter of the year. Comparable restaurant sales also jumped 8 percent for the same period. Gordon denied that D’Amelio’s departure reflects any turmoil within the company. “He was here 17 years (and) did a fantastic job,” Gordon said. “It’s a personal decision and we respect that.” In a note to investors, Friedman, Billings, Ramsey and Co. analyst Ashley R. Woodruff said the resignation is expected to have no significant impact on the company, which has seen its growth largely fueled by Overton, who has been at the post since 1992. Briefly The apartment complex owner AvalonBay Communities, which has a significant foothold in the Valley, raised $594 million by selling 4.6 million shares of common stock in a public stock offering. The company, which joined the S & P; 500 Index at the start of the year, said it plans to use the cash for general corporate purposes. Tix Corp., a Studio City seller of Las Vegas show tickets, reported its same day ticket division Tix4Tonight saw a 137 percent increase in sales for the three months ending Dec. 31 compared to the year ago period. Gross ticket sales totaled $7.3 million, a $4.3 million boost. Glendale-based family restaurant operator IHOP Corp. reported its fourth quarter same-store sales saw a small increase .4 percent. The same-store increase, an important gauge in the restaurant business, reflected limited-time officers and gift card sales, the company said. Staff Reporter Chris Coates can be reached at (818) 316-3124 or [email protected] .

Featured Articles

Related Articles