Shares of Cheesecake Factory Inc. fell more than 7 percent Tuesday after the casual dining chain previewed fourth-quarter results that fell short of Wall Street expectations.
The Calabasas company, noting that bad weather late in the quarter hurt sales, announced preliminary revenue of $417 million, compared with $401 million a year earlier. The analyst consensus was for more than $418 million.
Comparable restaurant sales at the Cheesecake Factory and Grand Lux Cafe were up 0.9 percent for the quarter, but the company said growth would have been up 2 percent if not for winter storms on both coasts and major holidays falling on weekends.
Cheesecake Factory plans to report earnings on Feb. 10. “As we begin the New Year, we remain comfortable with our expectations for 2011, the planned expansion of our brands and our ability to continue to grow shareholder value in 2011 and beyond,” Chief Executive David Overton said in a statement.
Shares closed down $2.36, or 7.6 percent, to $28.90 on the Nasdaq.