Despite the prospect of many co-tenants closing multiple stores, the chain has not been doing mass renegotiations of their deals, said David Overton, chairman and chief executive officer. The company is a destination in itself, located in some of the top malls in the country, which are less likely to be affected by closures.
"There would have to be a lot of tenants closing [to trigger a renegotiation]. Frankly, we have some of the best lease arrangements out there," said David Overton, chairman and CEO. "It's hard to go back and do that."
Any renegotiations would be done on an individual basis.
However, the company has decided to reduce its new restaurant openings to three from seven opened in 2008. A Cheesecake Factory unit will open next week in Walnut Creek, Calif., with only two more planned for this year, though "those openings are not assured and may move to 2010," Overton added.
Total revenues for the quarter were $400.4 million, down 1.5% from the same quarter last year. Comparable restaurant sales decreased 7.1%. By concept, comparable restaurant sales decreased 7% and 8.1% at The Cheesecake Factory and Grand Lux Cafe, respectively. Net income was $7.1 million.
In fiscal 2009, the Company now expects to open one restaurant in the first quarter and as many as two additional restaurants during the remainder of the year. The total number of new restaurants opened during fiscal 2009 will depend on economic conditions and the readiness of developments in which our restaurants will be located. For the year, the company reported revenues of $1.6 billion , up from $1.5 billion the previous year. Earnings were $53.3 million, down from $74 million the previous year.
The Cheesecake Factory operates 145 Cheesecake Factory restaurants, 13 Grand Luxe Cafes, and one RockSugar Pan Asian Kitchen.
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