The Cheesecake Factory‘s net income surged in the fiscal third quarter on the back of higher sales amid new restaurant openings.
The cheesecake and desserts place booked net income of $30 million in the three months ended October 1, soaring 67.1 per cent from the year-ago period.
Revenue grew 4.2 per cent to $865.5 million, with The Cheesecake Factory restaurants achieving revenue of $647.8 million, up 3.1 per cent.
The company’s North Italia brand increased sales by 15.2 per cent to $71.9 million, and its Fox Restaurant Concepts stores, excluding Flower Child, by 14.2 per cent to $67 million.
Sales in the company’s ‘other’ segment – including the Flower Child, Grand Lux Cafe and Social Monk Asian Kitchen concepts and third-party bakery, international and consumer packaged goods businesses, unallocated corporate expenses and gift card costs – declined 2.7 per cent to $78.9 million.
“We opened four new restaurants during the third quarter and, subsequent to quarter-end, opened three additional restaurants across various concepts for a total of 17 new openings year-to-date,” said David Overton, The Cheesecake Factory chairman and CEO.
“Our ability to execute against our pipeline and successfully expand our restaurant footprint reinforces our confidence in our ability to achieve our near-term and longer-term development objectives.”
The company expects to open as many as 22 restaurants during the fiscal year, consisting of three The Cheesecake Factory restaurants, six North Italia restaurants, six to seven Flower Child locations, and eight FRC restaurants.
