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Cheesecake Factory Profit Down

But sales increase about 10% in the fourth quarter.

Shares of

The Cheesecake Factory

(CAKE) - Get Cheesecake Factory Incorporated Report

stumbled in after-hours trading Tuesday after the casual dining restaurant operator reported a dip in fourth-quarter earnings.

The Calabasas Hills, Calif.-based company reported net income of $20.4 million, or 26 cents a share, down from $22.6 million, or 28 cents a share, a year ago. Revenue increased about 10% from a year ago to $360.7 million. The quarter was 13 weeks this year.

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Analysts polled by Thomson Financial were expecting the company to earn 24 cents a share on revenue of $359.6 million.

Comparable restaurant sales, or sales at restaurants open at least a year, increased 0.8%. By concept, comparable sales increased 0.4% at The Cheesecake Factory and increased 7.8% at Grand Lux Cafe.

"We were very pleased with the positive sales trend in the fourth quarter," David Overton, chairman and CEO, said in a statement. "We experienced reduced volatility in guest traffic, strong gift card sales, a solid sales contribution from our new restaurants and robust third party bakery sales in the fourth quarter."

The company said it plans to open up to 21 new restaurants in fiscal 2007, including five to six Grand Lux Cafes. The majority of the new restaurants will be opened during the second half of the year.

Shares were down $1.16, or 4.2%, to $26.60 in recent after-hours trading.