Q1 2024 Cheesecake Factory Inc Earnings Call Transcript
Key Points
- Cheesecake Factory Inc reported revenues near the high end of the expected range, with a 20% year-over-year growth in adjusted earnings per share.
- The company successfully opened five new restaurants in the first quarter, keeping on track with its expansion plan to open up to 22 new restaurants in 2024.
- Cheesecake Factory Inc was named one of Fortune Magazine's 100 Best Companies to Work For for the 11th consecutive year, highlighting its strong company culture and ability to attract and retain talent.
- Comparable sales and traffic for Cheesecake Factory restaurants significantly outperformed the industry, demonstrating strong consumer demand and effective market share capture.
- Operational execution within the restaurants was excellent, with labor productivity, food efficiencies, and wage management exceeding expectations.
- Comparable sales at The Cheesecake Factory restaurants slightly declined by 0.6% year-over-year, primarily due to adverse weather conditions in January.
- The company recorded a net expense of $3.2 million related to impairment of assets, lease terminations, and acquisition-related expenses.
- General and administrative expenses increased by 60 basis points, driven by higher staffing and legal costs.
- Despite overall positive performance, the company noted that the consumer environment remains challenging, with other companies in the industry reporting softness.
- The company is taking a cautious approach with the Cheesecake Rewards program, not expecting a measurable impact on sales in its first year, indicating a slow start to this new initiative.
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 Inc first-quarter 2024 earnings conference call.
Please note that this call is being recorded and all lines have been placed on mute to prevent any background noise. (Operator Instructions)
I'd now like to turn the call over to Etienne Marcus, Vice President of Finance and Investor Relations. Please go ahead.
Yes, good afternoon, and welcome to our first-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.
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