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Thursday, October 22, 2009
Cheesecake Factory posts 38 pct gain in 3Q profit
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Restaurant operator The Cheesecake Factory Inc. said Thursday its third-quarter profit rose 38 percent as it cut $8 million in costs and rolled out expanded menu offerings.

Quarterly profit rose to $16.3 million, or 27 cents per share, from $11.8 million, or 19 cents per share, last year. Excluding certain interest costs on a revolving credit line, net income totaled 29 cents per share in the latest period.

Revenue slipped 1 percent to $400.6 million from $405.1 million last year, while sales in stores open at least one year fell 2.8 percent.

On average, analysts polled by Thomson Reuters expected a profit of 24 cents per share on slightly highe rrevenue of $405.3 million.

During the quarter, the company expanded its small plates & snacks and kid's menus and introduced a new cheesecake it called one of its most successful in company history. It has also slashed the balance on its revolving credit facility to $125 million.

Shares rose 26 cents to end at $18.14, and jumped 45 cents, or 2.5 percent, to $18.59 in aftermarket trading.

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