The Cheesecake Factory Inc. reported Wednesday a 25-percent decline in net income for the fourth quarter ended Dec. 30, which the company attributed to higher costs.
Despite the drop, same-store sales climbed 1.4 percent during the quarter. The company did not report same-store sales for fiscal 2014.
Cheesecake Factory chairman and CEO David Overton said it was the casual-dining chain’s fifth consecutive year of positive quarterly same-store sales. Newer restaurants continue to outperform the company average.
“However, the operating environment was challenging, and the fourth quarter was another in which we were impacted by cost pressures,” Overton said in a statement. “As we look forward to this year and beyond, we believe our future is bright, with multiple opportunities for us to continue our leadership in casual dining and continue to grow our company with the best talent in the industry to successfully execute our strategy.”
During fiscal 2014, the company opened its first restaurant in Mexico, expanded in the Middle East, and struck a licensing agreement to grow in Asia. The Cheesecake Factory also opened 10 new restaurants in the US.
The Calabasas Hills, Calif.-based operator expects to open 11 restaurants in the U.S. in 2015, and as many as four more locations in the Middle East and Mexico.
The company ended the quarter with 177 The Cheesecake Factory units, 11 Grand Lux Café locations and one RockSugar Pan Asian Kitchen restaurant, along with eight licensed international units.
4Q NET INCOME
Result: $24.5 million, or 48 cents per share% Decrease: 25% (from $33 million, or 62 cents per share)
4Q REVENUE
Result: $499.7 million% Increase: 5% (from $475.1 million)
4Q SAME-STORE SALES
% Increase systemwide: 1.4%Source: Company report
FULL YEAR NET INCOME
Result: $101.3 million, or $1.96 per share% Decrease: 11% (from $114.4 million, or $2.10 per share)
FULL YEAR REVENUE
Result: $1.98 billion% Increase: 5% (from $1.9 billion)
Source: Company report
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