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The Cheesecake Factory Incorporated (NASDAQ: CAKE) today reported financial results for the second quarter of fiscal 2012, which ended on July 3, 2012.
Total revenues were $454.7 million in the second quarter of fiscal 2012 as compared to $430.7 million in the prior year second quarter. Net income and diluted net income per share were $28.4 million and $0.52, respectively.
In the second quarter of fiscal 2012, the Company realized $0.4 million in proceeds from a variable life insurance contract, which the Company uses to support its non-qualified deferred compensation plan. This item is non-taxable and increased reported diluted net income per share by approximately $0.01. Excluding this item, net income and diluted net income per share were $28.0 million and $0.51, respectively.
Comparable restaurant sales at The Cheesecake Factory and Grand Lux Cafe increased 1.7% in the second quarter of fiscal 2012. By concept, comparable restaurant sales grew 2.1% at The Cheesecake Factory and declined 2.9% at Grand Lux Cafe.
“We continue to take market share and maintain our outperformance relative to the industry with respect to comparable restaurant sales, particularly growth in guest traffic. We have long said that our focus on menu innovation and quality, as well as high levels of hospitality, set us apart from others in casual dining and represent our biggest sales drivers. Once again, we demonstrated that we are focused on the right areas to drive sales, and we continue to hold a leadership position in these areas,” said David Overton, Chairman and CEO.
“Our financial performance was strong across our key metrics, including significantly higher restaurant-level margins, compared to last year. As a result, we delivered earnings per share growth of over 20 percent in the second quarter, solidly above our targeted range,” continued Overton.
The Company also announced today that its Board of Directors approved the initiation of a cash dividend to its shareholders. A quarterly dividend of $0.12 per share will be paid on August 21, 2012 to shareholders of record at the close of business on August 8, 2012. On an annualized basis, the Company’s dividend payment equates to a payout of approximately 25 percent of its full-year net income. Future dividends will be subject to Board approval.