The Cheesecake Factory(CAKE) - 2025 Q1 - Quarterly Report

Revenue and Sales Performance - Revenues increased by 2.9% to $891.2 million for the fiscal quarter ended April 2, 2024, compared to$866.1 million for the same period in the prior year, primarily due to new restaurant openings[97] - The Cheesecake Factory sales rose by 1.8% to $667.8 million in the first quarter of fiscal 2024, while average sales per restaurant operating week decreased by 0.7$237,903[98] - Comparable sales for The Cheesecake Factory decreased by 0.6%, or $3.9 million, driven by a 1.5$70.9 million for Q1 fiscal 2024, compared to $63.3 million in Q1 fiscal 2023[99] - Flower Child sales rose 10.2$34.5 million for Q1 fiscal 2024, up from $31.3 million in Q1 fiscal 2023[101] - Other FRC sales increased 8.2$74.2 million for Q1 fiscal 2024, compared to $68.6 million in Q1 fiscal 2023[102] - Total revenue for fiscal 2024 is anticipated to be approximately$3.6 billion[115] Cost Management and Financial Metrics - The Cheesecake Factory's food and beverage costs decreased to 22.8% of revenues in the fiscal quarter ended April 2, 2024, down from 23.8% in the prior year[96] - Total costs and expenses were 95.6% of revenues for the fiscal quarter ended April 2, 2024, compared to 96.1% for the same period in the prior year[96] - The company is focused on managing expenses prudently at restaurants, bakery facilities, and corporate support centers to leverage purchasing power[85] - The effective income tax rate decreased to 11.6% in Q1 fiscal 2024 from 12.5% in Q1 fiscal 2023[110] - The company expects a net income margin of approximately 4.25% for fiscal 2024[115] Capital Expenditures and Growth Plans - The company plans to continue expanding The Cheesecake Factory and North Italia concepts, focusing on premier locations in both new and existing markets[85] - The company aims for a targeted annual unit growth of 7% across concepts, combined with margin expansion to support a long-term financial objective of 13% to 14% total return to shareholders[93] - The company plans to open up to 22 new restaurants in fiscal 2024, with capital expenditures estimated between $180 million to$200 million[116] - Capital expenditures for new restaurants were $25.0 million in Q1 fiscal 2024, compared to$24.3 million in Q1 fiscal 2023[121] Shareholder Returns and Stock Activity - Common stock dividends paid were $12.8 million in Q1 fiscal 2024, compared to$13.2 million in Q1 fiscal 2023[125] - The company has repurchased 56.9 million shares at a total cost of $1,824.2 million, with 0.4 million shares repurchased for$12.5 million in Q1 fiscal 2024[127] - The company has cumulative share repurchase authorization of up to 61.0 million shares, with no expiration date[128] Liquidity and Financial Stability - Cash provided by operating activities increased by $1.7 million in Q1 fiscal 2024, totaling$66.7 million[120] - The company believes its cash and cash equivalents, along with expected cash flows and available borrowings, will provide adequate liquidity for the next 12 months[129] - The company entered into a Fourth Amended and Restated Loan Agreement providing a $400 million Revolver Facility, with$236.5 million net availability for borrowings as of April 2, 2024[123] - The Revolver Facility includes financial covenants that limit equity distributions and restrict certain financial activities[124] Risk Management - A hypothetical 1% increase in food costs would have negatively impacted cost of sales by $2.0 million in Q1 fiscal 2024[136] - A hypothetical 1$1.3 million based on borrowings as of April 2, 2024[137] - The company has not experienced changes in internal control over financial reporting that materially affect its financial reporting[139] - The company has no hedging contracts in place as of April 2, 2024, to manage commodity price risks[135]