Cheesecake Factory Back in Compliance

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The Cheesecake Factory Inc. said that it has formally notified the Nasdaq that the company is now in compliance with the exchange’s requirements for continued listing on the stock market.


The Calabasas-based casual dining restaurant chain said that it had corrected all of the errors found in previous financial statements after an investigation into its stock-options granting practices. It added the errors were due to how it accounted for gift cards, recorded expenses for bonuses and amortized the cost of liquor licenses.


The corrections subsequently increased net income by $400,000 for the 2005 fiscal year, reduced net income by $1.2 million in 2004 and reduced net income by $1.6 million in fiscal year 2003.


Shares in Cheesecake Factory closed down 30 cents to $24.85 Wednesday.

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