Cheesecake Factory Inc. announced it will acquire Phoenix-based Fox Restaurant Concepts and the remaining interest in FBC’s North Italia and Flower Child franchises, which it made minority investments into in 2016. Fox currently operates 45 restaurants across seven states.
The acquisitions will cost the Calabasas restaurateur $308 million at closing, plus an additional $45 million over the next four years. The acquisition is expected to close at the end of the third quarter.
“With the power of the Cheesecake Factory brand, infrastructure and growth potential, complemented by an additional growth vehicle in the North Italia concept and an incubation engine to develop concepts of the future, we believe we will be even better positioned to provide our guests with exceptional dining experiences,” Cheesecake Chief Executive David Overton said in a statement.
In a separate announcement, the company reported mixed earnings and revenue results for the second quarter.
Cheesecake reported net income of $35.5 million (82 cents a share) on revenue of $603 million for the quarter ending July 2. Zacks Consensus Estimate predicted earnings of 81 cents per share and revenue of $610 million.
The second-quarter results were well up from the same quarter last year, when the company reported net income of $28.4 million (62 cents per share) on revenue of $587 million.
“Adjusted earnings per share was within our expectations, supported by solid operational execution during the quarter,” Overton said in a statement. “This performance was in spite of a soft restaurant industry sales environment in which we continued to outperform.”
Shares of Cheesecake Factory (CAKE) closed Thursday up $1.16, or 2.7 percent, to $44.24 on the Nasdaq.
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