Cheesecake Factory swings to a loss as coronavirus weighs on earnings

A Cheesecake Factory restaurant in Louisville, Kentucky.

Andy Lyons | Getty Images

The Cheesecake Factory swung to a loss in its fiscal first quarter as the coronavirus pandemic forced the company to close its dining rooms and furlough thousands of its workers.

Shares of the company rose 3% in extended trading.

Here’s what the company reported for the quarter ended March 31:

  • Earnings per share: 4 cents, adjusted
  • Revenue: $615.1 million

The company reported fiscal first-quarter net loss of $3.93 million, or 9 cents per share, down from net income of $27.0 million, or 61 cents per share, a year earlier.

Excluding items, Cheesecake Factory earned 4 cents per share.

Net sales rose 2.6% to $615.1 million.

Wall Street anticipated a loss per share of 38 cents on revenue of $611.4 million, based on a survey of analysts by Refinitiv. However, it’s difficult to compare reported earnings to analyst estimates for Cheesecake Factory’s quarter, as the coronavirus pandemic continues to hit global economies and makes earnings impact difficult to assess.

The company said that its quarterly regulatory filing will be delayed because of the need to record asset impairment charges and due to the acquisition of Fox Restaurant Concepts, which could result in an even bigger hit to its profits.

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