Shares in casual dining chain Cheesecake Factory Inc. dipped nearly 8 percent early Wednesday after the company reported that fourth-quarter earnings fell, forcing the chain to scale back its planned restaurant openings for the year.

Cheesecake Factory reported that net income for the quarter slipped to $13.3 million (19 cents per share), down 35 percent from $20.4 million (26 cents) from the same period a year earlier. The company added that charges associated with legal issues, greater interest expense and lower interest income hurt quarterly profit.

Sales for the Calabasas chain rose 13 percent to $406 million but comparable restaurant sales slipped 0.4 percent, which the company attributed to lower-than-expected restaurant traffic and severe winter weather in some regions.

The company said it still plans to open between seven and nine restaurants in 2008 off last year’s pace of 21 restaurants and less than the 17 restaurants the company said it planned to open. The company also said it will implement a 1.5 percent menu price increase.

The poor earnings come as investors, namely Robert Olstein of Olstein Capital Management LP, have expressed discontent with Cheesecake Factory’s “profitless prosperity,” and have called for the company’s founder and chief executive, David Overton, to step down. Overton founded the chain in 1978 and has run it ever since.

Olstein holds a 2 percent stake in the company.

Shares in Cheesecake Factory were down 7.5 percent to $19.30 in afternoon trading Wednesday on the Nasdaq.