Cheesecake Factory's Traffic Problems: Fool by Numbers

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On Nov. 30, The Cheesecake Factory (Nasdaq: CAKE) released third-quarter earnings for the period ended Oct 3.

• Comparable restaurant sales decreased 1.6%. The company blamed "macro trends" for slow traffic.
  
  
• Net income decreased 16.5% to $18.1 million, following an overall increase in costs and expenses.
  
  
• Year to date, the company has opened 15 new Cheesecake Factory restaurants and one Grand Lux Cafe.
  
  
• Cheesecake Factory has a three-star rating in Motley Fool CAPS.

(Figures in millions, except per-share data)

Income Statement Highlights

	Q3 2006	Q3 2005	Change
Sales	$325.3	$293.9	10.7%
Net Profit	$18.1	$21.7	(16.5%)
EPS	$0.23	$0.27	(14.8%)
Diluted Shares	78.7	80.2	(1.9%)

Get back to basics with a look at the income statement.

Margin Checkup

	Q3 2006	Q3 2005	Change*
Gross Margin	75%	74.6%	0.4
Operating Margin	7.6%	10.9%	(3.3)
Net Margin	5.6%	7.4%	(1.8)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets	Q3 2006	Q3 2005	Change
Cash + ST Invest.	$19.6	$21.1	(7.4%)
Accounts Rec.	No Data	No Data	No Data
Inventory	No Data	No Data	No Data

Liabilities	Q3 2006	Q3 2005	Change
Accounts Payable	No Data	No Data	No Data
Long-Term Debt	No Data	No Data	No Data

Learn the ways of the balance sheet.

Cash Flow Highlights
For a company known for generous portions, Cheesecake Factory was surprisingly stingy with its cash flow data.

Find out why Fools always follow the money.

Related Companies:

• Jack in the Box (NYSE: JBX)
• OSI Restaurant Partners (NYSE: OSI)
• Triarc Companies (NYSE: TRY)
• Darden Restaurants (NYSE: DRI)

Related Foolishness:

• Cheesecake Factory's Stale Sales
• Eat Cheesecake, Lose Weight

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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.