Cheesecake Factory Net Surges, Same Store Sales Flat

The Cheesecake Factory Inc. reported net income climbed 32 percent to $23.3 million or $0.29 per share for the second quarter of 2005 on revenues of $288.3 million. The Calabasas Hills-based restaurant operator said that same store sales for the period increased 1.7 percent compared to the second quarter of 2004 when Easter holiday sales helped to boost revenues. This year, Easter holiday sales were attributable to the first quarter. “We estimate comparable sales would have increased approximately 2.2 percent without the impact of the holiday shift, or approximately equal to our effective menu price increase,” said David Overton, chairman and CEO of Cheesecake Factory in a press release announcing the financial results. In the second quarter of 2004 Cheesecake earned $17.6 million or $0.22 per share on revenues of $234.9 million. For the first half of 2005 ended June 28, Cheesecake Factory earned $43.2 million or $0.53 per diluted share on revenues of $556.6 million. That compares with net income of $34.2 million or $0.43 per share on revenues of $455.5 million for the comparable period a year ago. Shares in Cheesecake Factory closed down 63 cents to $35.35 following the announcement.