Bad winter weather and the timing of the holidays put a damper on The Cheesecake Factory’s fourth quarter same-store sales, the company said Tuesday.
Calabasas Hills, Calif.-based The Cheesecake Factory Inc. said same-store sales rose a modest 0.9 percent for the quarter ended Dec. 28. If not for the weather and holiday shift, however, the company said same-store sales would have increased 2.1 percent for the quarter.
Revenue for the quarter totaled $417 million, up nearly 4 percent from a year ago but below analysts’ estimated target of around $418 million.
Cheesecake Factory's stock price fell on the weaker-than-expected sales, declining more than 7 percent to close at $28.90 on Tuesday.
By concept, the Cheesecake Factory chain saw same-store sales up 1.0 percent, while sister brand Grand Lux Café recorded a 0.4-percent decline in same-store sales for the quarter. The company operates 149 Cheesecake Factory restaurants and 13 Grand Lux Cafés.
David Overton, Cheesecake Factory Inc. chairman and chief executive, noted that guest traffic was up and same-store sales had been positive for four consecutive quarters. For the year, same-store sales were up 2.0 percent, he added.
“Our consistently strong performance throughout the year reflects our building market share and solid strategic and operational execution,” he said. “As we begin the New Year, we remain comfortable with our expectations for 2011, the planned expansion of our brands and our ability to continue to grow shareholder value in 2011 and beyond.”
The company expects to release full results for the fourth quarter and fiscal 2010 on Feb. 10.
Contact Lisa Jennings at [email protected].
