Cheesecake Probe to Cost $5 Million

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Cheesecake Factory Inc. said Monday in a statement that the stock options probe it is conducting will cost the company $5.5 million after taxes.


The company said in a statement that the probe found that it used an incorrect date for certain stock-option grants made to executive officers, non-executive officers, employees and outside directors.


The investigation also forced the Calabasas-based causal dining chain operator to delay filing its financial statements for the second and third quarters until the end of this month.


Cheesecake Factory said Aug. 3 it received an informal inquiry from the Securities and Exchange Commission on its options practices. The audit committee of the company’s board said in July it was working with outside attorneys to review the grants. Cheesecake Factory is among more than 180 companies that have disclosed internal or federal investigations into options practices.


Shares of the company were up 32 cents to $28.52 in early trading Monday.

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