Cheesecake Factory Inc. posted rising fourth quarter profit on Wednesday but said extreme winter weather cut into its same-store sales.
The Calabasas operator of casual dining restaurants reported net income of $33 million (62 cents a share) for the quarter ended Dec. 31, compared to $22 million (40 cents) in the same period a year earlier. Revenue rose 2 percent to $475 million.
The company reported a net $3.8 million pre-tax credit primarily related to the relocation of two Cheesecake Factory restaurants. The credit boosted diluted per-share net income by about 4 cents. Excluding this item, net income was 57 cents a share.
Analysts on average expected net income of 59 cents on revenue of about $484 million, according to Thomson Financial Network.
Overall, comparable restaurant sales at the company’s 169 Cheesecake Factory outlets rose about 1 percent, while sales at its 11 Grand Lux Cafes fell about 1 percent.
The company added that its overall same-store sales were reduced by 0.7 percent due to severe winter storms. Excluding this weather impact, comparable restaurant sales increased 1.6%.
The company expects to open as many as a dozen company-owned restaurants this year, including five restaurants in the Middle East and Mexico under licensing agreements.
“We continue to allocate capital effectively by investing in new restaurant development, maintaining our existing restaurants, and returning excess cash to shareholders,” said Chief Executive David Overton, in a prepared statement.
For the year, Cheesecake reported net income of $114 million ($2.10), compared to $98 million ($1.78) in 2012. Revenue rose about 3.5 percent to $1.88 billion.
Analysts on average expected earnings of $2.12 on revenue of $1.89 billion, according to Thomson Financial Network.
Shares closed down 25 cents, or about half a percent, to $45.34 on the Nasdaq.
Shares of ReachLocal Inc. dropped nearly 15 percent Wednesday following the announcement of widening losses in the fourth quarter.
The Woodland Hills company, which helps small and mid-sized businesses market online, reported a net loss $585, 000 (-2 cents a share) for the quarter, compared to a loss of $394,000 (-1 cent) in the same quarter a year earlier. Revenue grew 11 percent to $133 million.
Analysts on average expected earnings of 3 cents a share on revenue of $135 million, according to Thomson Financial Network.
The company said the surprise losses are driven by costs to reorganize its domestic staff as sales grow rapidly in international markets.
“In December 2013, we executed a complete realignment of our direct local sales force in North America,” said interim Chief Executive David Carlick. “While these changes negatively impacted our fourth-quarter revenue results and will require increased investment in 2014, we believe these initiatives mark the transition of ReachLocal to a product-focused technology company with a significantly expanded market opportunity.”
For the full year, the company reported a net loss of $2.5 million (-9 cents) compared to a loss of $232,000 (-1 cent) in 2012. Annual revenue increased 13 percent to $514 million.
Analysts on average expected earnings of 8 cents on revenue of $592 million, according to Thomson Financial Network.
Shares fell $1.88 to $10.80 on the Nasdaq.
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