Business
The Cheesecake Factory Reports Results for Second Quarter of Fiscal 2019
Announces definitive agreements to acquire Fox Restaurant Concepts and remaining interest in North Italia; Reinforces leadership position in experiential
About this update from The Cheesecake Factory Incorporated
[{"type":"text","content":"\nAnnounces definitive agreements to acquire Fox Restaurant Concepts and remaining interest in North Italia; Reinforces leadership position in experiential dining\n\n CALABASAS HILLS, Calif.--(BUSINESS WIRE)--\nThe Cheesecake Factory Incorporated (NASDAQ: CAKE) today reported financial results for the second quarter of fiscal 2019, which ended on July 2, 2019. \n\n\nTotal revenues were $602.6 million in the second quarter of fiscal 2019 compared to $587.3 million in the second quarter of fiscal 2018. Net income and diluted net income per share were $35.5 million and $0.79, respectively, in the second quarter of fiscal 2019.\n\n\nExcluding the after-tax impact of the $1.2 million loss on the Company’s minority investments, net income and diluted net income per share for the second quarter of fiscal 2019 would have been $36.7 million and $0.82, respectively. Please see the Company’s reconciliation of non-GAAP financial measures at the end of this release.\n\n\nComparable restaurant sales at The Cheesecake Factory restaurants increased 1.0% in the second quarter of fiscal 2019.\n\n\nIn a separate press release issued this afternoon, the Company also announced that it has entered into definitive agreements to acquire Fox Restaurant Concepts (“FRC”) and the remaining interest in North Italia, reinforcing its leadership position in experiential dining. Each of the North Italia and FRC transactions is subject to the expiration of the applicable Hart-Scott-Rodino Act waiting period and other customary closing conditions, and is expected to close around the end of the third quarter of fiscal 2019.\n\n\n“Adjusted earnings per share was within our expectations, supported by solid operational execution during the quarter,” said David Overton, Chairman and Chief Executive Officer. “This performance was in spite of a soft restaurant industry sales environment in which we continued to outperform.”\n\n\nOverton continued, “Our strong cash flow profile enables us to continue to execute a balanced capital allocation strategy that we believe will generate the best returns for our shareholders. We increased our dividend for the seventh consecutive year, continued to execute on our share repurchase program and are positioned to drive long-term profitable growth with today’s announcement of our plans to bring together North Italia and Fox Restaurant ...