Q2 2024 Cheesecake Factory Inc Earnings Call Transcript
Key Points
- Cheesecake Factory Inc (CAKE) reported a 24% year-over-year growth in adjusted earnings per share for the third consecutive quarter.
- Comparable sales at The Cheesecake Factory restaurants increased by 1.4%, outperforming the casual dining industry.
- The company opened five new restaurants in the second quarter, including one Cheesecake Factory, one North Italia, one FRC restaurant, and two Flower Child locations, all of which opened to impressive demand.
- Operational performance within the restaurants was excellent, with a focus on improving efficiencies, labor productivity, and wage management, leading to enhanced restaurant-level profitability.
- The Cheesecake Factory's four-wall margin reached 17.7% for the quarter, the highest level in the past six years.
- Total revenues for the full year 2024 are now projected to be slightly lower at $3.58 billion, down from the previous guidance of $3.6 billion.
- External bakery sales decreased by 12% from the prior year, totaling $13.6 million.
- Two Cheesecake Factory restaurant closures are expected, one related to a lease exit and the other due to the conversion of a center location.
- North Italia's comparable sales increased by only 2% from the prior year, indicating slower growth compared to other segments.
- The company noted some softness in the retail segment, which contributed to the slight adjustment in the full-year revenue outlook.
Good afternoon. My name is Brianna, and I will be your conference operator today. At this time, I would like to welcome everyone to The Cheesecake Factory Incorporated second quarter 2024 earnings conference call. Please note that this call is being recorded. (Operator Instructions)
Thank you. I'll now turn the call over to Etienne Marcus, Vice President of Finance and Investor Relations. You may begin your conference.
Good afternoon, and welcome to our second quarter fiscal 2024 earnings call. On the call with me today are David Overton, our Chairman and Chief Executive Officer; David Gordon, our President; and Matt Clark, our Executive Vice President and Chief Financial Officer.
Before we begin, let me quickly remind you that during this call, items will be discussed that are not based on historical fact and are considered forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could be materially different from those
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