Cheesecake Factory Reports Adj. Preliminary Net Income In Q1

(RTTNews) - The Cheesecake Factory Incorporated (CAKE) reported adjusted preliminary net income and adjusted preliminary net income per share of $1.6 million and $0.04, for the first quarter. On average, 17 analysts polled by Thomson Reuters expected the company to report a loss per share of $0.34, for the quarter. Analysts' estimates typically exclude special items.

First quarter total revenues were $615.1 million compared to $599.5 million, prior year. Comparable restaurant sales at The Cheesecake Factory restaurants decreased 12.9% in the first quarter, reflecting the impact of COVID-19. Analysts expected revenue of $613.68 million for the quarter.

The Cheesecake Factory noted that the impact of COVID-19 on the company's business has resulted in the need to perform impairment assessments of long-lived assets, goodwill and other intangible assets and a revaluation of contingent consideration associated with the acquisition of FRC, which will delay the filing of the quarterly report on Form 10-Q. The preliminary financial results do not include these items and the corresponding tax effects.

As of March 31, 2020, cash and cash equivalents totaled $81.0 million and total debt was $380.0 million. The company's Board of Directors has suspended the quarterly dividend on its common stock, as well as share repurchases.