Cheesecake Factory Profit Falls 75%; Revenues Up 27%
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Cheesecake Factory Inc. posted a 75% drop in its fourth-quarter profit despite a 27% rise in revenues.
The Calabasas-based restaurant chain posted net income of $505,000 for the quarter that ended Dec. 29, compared with a profit of $2 million a year earlier. Revenues in the latest quarter were $43.5 million, up from $34.3 million in the same period a year ago.
The company attributed its profit slide to a previously announced charge of $1.32 million due in part to the write-off from part of its investment portfolio, the liquidation of some debt securities and the cost of settling an employment practices claim against the company.
For all of last year, the company’s net income fell 31% to $5.9 million, compared with an $8.6 million profit in 1995. Revenues last year climbed 37% to $160.3 million, versus $117.2 million a year earlier.
The company now operates 18 restaurants. Cheesecake Factory said its restaurant sales rose 5.1% last year.
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