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Friday, Mar 29, 2024

Cheesecake’s Investor Update Highlights Restaurant Rebound

Cheesecake Factory Inc. provided a business update ahead of two upcoming investor conferences.This year’s second quarter-to-date sales, measured through May 31, increased about 196 percent year-over-year and 7 percent compared to the same period in fiscal 2019, according to the Calabasas-based restaurant company. Weekly sales quarter-to-date averaged $226,500 per unit, equating to an annualized average of $11.8 million per unit.Last year’s first quarter occasioned a cratering of Cheesecake’s business with the onset of the coronavirus pandemic. The impact included temporary furloughs for about 41,000 hourly restaurant employees, as well as cuts of 20 percent to executive salaries.In its update on Wednesday, the company said nearly all of its restaurants, across different brands, have reopened indoor dining rooms at limited capacity in accordance with local mandates, including 206 Cheesecake Factory restaurants.One Cheesecake Factory location is currently operating an off-premise only model with no indoor seating available and two additional locations are slated to reopen next week. A new Flower Child location opened in Atlanta last month.The company provided the update on Wednesday. Shares of Cheesecake Factory (CAKE) climbed briefly after the announcement on June 2 to a high of $59.17 before sliding more than 5 percent to close at $56.21 on Friday.

Katherine Tangalakis-Lippert
Katherine Tangalakis-Lippert
Katherine Tangalakis-Lippert is a Los Angeles-based reporter covering retail, hospitality and philanthropy for the San Fernando Valley Business Journal. In addition to her current beat, she is particularly interested in criminal justice topics, health and science stories and investigative journalism. She received her AA in Humanities from Moorpark College in 2016, her BA in Communication from Cal Lutheran University in 2019 and followed it up with a MA in Specialized Journalism from USC in the summer of 2020. Through her work, Katherine aspires to help strengthen the fragile trust between members of the media and the public.

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