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Cheesecake’s 1-Q profits slip

CALABASAS HILLS Calif. The Cheesecake Factory Inc. reported Thursday a first-quarter profit decline from a year ago, as the weakened U.S. economy resulted in less guest traffic at its two casual-dining brands and higher operating costs pressured the bottom line.

For the quarter ended April 1, net income totaled $14.3 million, or 21 cents per share, down from earnings of $18.4 million, or 24 cents per share, a year ago. In the latest quarter, Cheesecake tallied average shares outstanding of 68.6 million, 12 percent less than a year ago, which helped boost its per-share earnings.

Total revenue for the operator of 139 Cheesecake units and 13 Grand Lux Cafe restaurants rose 10.4 percent to $393.8 million. The revenue surge was aided by sales from 20 additional restaurants in operation this year compared with last year. Same-store sales, however, decreased 1.9 percent at Cheesecake and fell 0.9 percent at Grand Lux, the company reported.

Total quarterly costs and expenses rose 11.8 percent in the latest quarter to $370.2 million, representing 94 percent of revenue.

TAGS: Finance News
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