CALABASAS HILLS, Calif. - The Cheesecake Factory (NASDAQ:CAKE) Incorporated (NASDAQ: CAKE) disclosed its financial outcomes for the first quarter of fiscal 2024, ending April 2, with a slight decline in comparable restaurant sales but an uptick in revenue and adjusted earnings per share (EPS).
The company's adjusted EPS of $0.73 outpaced the analyst consensus of $0.63, while revenue increased to $891.2 million from $866.1 million in the same quarter last year, marginally surpassing the $890.49 million analyst estimate.
The Cheesecake Factory's stock price rose by 2%.
The company's comparable restaurant sales saw a minor decrease of 0.6% year-over-year (YoY), which contrasts with the industry's overall performance.
David Overton, Chairman and Chief Executive Officer, attributed the quarter's achievements to the company's operational efficiencies and the dedication of its staff. Overton highlighted the significant growth in profitability thanks to improvements in labor productivity, food efficiency, and staff retention. He also took pride in the company's recognition as a distinguished employer, having been named to Fortune magazine's '100 Best Companies to Work For' list for the 11th consecutive year.
The Cheesecake Factory's development strategy remains robust, with five new restaurants opened during the quarter, including international expansions under licensing agreements in Mexico and Asia. The company anticipates opening up to 22 new restaurants throughout fiscal 2024.
In terms of liquidity, The Cheesecake Factory reported $296.7 million in total available liquidity and continued its capital allocation strategy by repurchasing approximately 359,400 shares of its stock at a cost of $12.5 million. Moreover, the Board of Directors declared a quarterly dividend of $0.27 per share, payable on June 4, 2024.
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