Cheesecake Barely Beats Wall St. Expectations

Cheesecake Factory Inc. on Monday reported third-quarter earnings that slightly beat analysts’ expectations but missed on revenue forecasts. The Calabasas restaurant chain posted net income of $26.2 million (54 cents a share) in the quarter ended Sept. 30, compared to $24.2 million (49 cents) in the same period a year earlier. Revenue rose 5 percent to $526 million. Analysts on average expected net income of 56 cents on revenue of about $535 million, according to Thomson Financial Network. The company opened two The Cheesecake Factory restaurants and one Grand Lux Cafe restaurant during the quarter. It reported comparable restaurant sales increased by 2.2 percent, its fifth year or 23 consecutive quarters of positive same store sales, according to Chief Executive David Overton. “We experienced similar cost dynamics to the second quarter, with favorability in costs that affected our results last year helping to offset some of the wage inflation that many restaurants and retailers are experiencing,” Overton said in a statement. The company will continue with its plans to open as many as 11 corporate-owned domestic restaurants in fiscal 2015. By the close of the fourth quarter Cheesecake will open five restaurants, one of which is scheduled to open in the beginning of November. Internationally, the company still plans to open three additional restaurants in the Middle East and Mexico under licensing agreements. Shares closed up $1.28 cents, or roughly 2.5 percent, to $51.99 on the Nasdaq.