Cheesecake Factory Net Income Drops 47 Percent in Q4

The Cheesecake Factory Inc. has released its financial results for the fourth quarter of fiscal 2008, which ended Dec. 30. The Calabasas Hills-based company reported net income of $7.1 million, or $0.12 per diluted share, on revenues of $400.4 million. That is a 47 percent drop from the net income of $13.3 million, or $0.19 per diluted share, on revenues of $406.3 million during the same period in 2007. Comparable restaurant sales decreased 7.1 percent in the fourth quarter of fiscal 2008 from the fourth quarter of 2007. “Our financial performance was as expected for the quarter and inline with our guidance,” stated David Overton, Cheesecake Factory’s Chairman and CEO. “We wrote down the value of three Cheesecake Factory restaurants this quarter, but the restaurants will remain open as we work to improve their productivity.” On a positive note, Cheesecake Factory generated approximately $84 million in free cash flow in fiscal 2008, which contributed to a year-end cash balance the company will use to reduce its debt in 2009. Nadra Kareem