Cheesecake Factory's (NASDAQ:CAKE) announcement that it opened its 94th restaurant may seem a bit strange at first glance. You don't see these kinds of press releases from a stalwart such as Applebee's (NASDAQ:APPB). Of course, with 1,722 units under its belt, perhaps a single restaurant opening is not such a big deal for Applebee's.
But if that were the case, then we should expect to find like announcements from smaller fast-growers such as P.F. Chang's (Nasdaq: PFCB) or Motley Fool Hidden Gems selection Buffalo Wild Wings (NASDAQ:BWLD), right? Nope, no such releases from them, either.
The reason it's a big deal when Cheesecake Factory opens a new restaurant, and why shareholders should throw a fiesta for every additional unit, is that no one in the business squeezes more from each location than this company. With the company's industry-leading $10.8 million in average annual sales per location, you can begin to see why the latest opening in Westlake, Ohio, is deserving of its own press release.
And each new restaurant opening means sweet quarterly results will continue to be served up. I hope you haven't grown weary of eating double-digit growth, because that's exactly what Cheesecake Factory keeps dishing out. Earnings for its second quarter grew by 32% over the same period last year to $23.3 million, bringing its earnings per share through six months to $0.53.
Revenue growth remains healthy, with an increase of 23% for the period to $288.3 million. Comparable same-store sales from Cheesecake Factory units were up 1.7%, while comps for its Grand Lux Cafes were higher by 3.6%.
The company continues to maintain a clean balance sheet with no long-term debt, cash and equivalents of $24.4 million, and marketable securities of $150.1 million. With nine additional Cheesecake Factory units planned for opening in the third and fourth quarters of this fiscal year, it's a good bet that its cash position will be put to good use.
And this is good news for shareholders. With the number of Cheesecake "cash" Factories set to expand by 10% just over the next several months, you have to like the prospects for more record results in the quarters ahead.
Read on for more Foolishness:
- Cheesecake Factory's comps continue to deliver.
- Its earnings have been sweet, too.
- Cheesecake Factory is even winning over the critics.
Fool contributor Jeremy MacNealy does not own shares in any of the companies mentioned.
