The Cheesecake Factory, Inc. Q3 2009 Earnings Call Transcript

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2009-10-22 19:33:07.0

Tags: Goldman Sachs Group Inc., Call Transcript, Cost Savings, Site, Earnings, Cheesecake Factory Inc., Seeking Alpha

Question-and-Answer Session

Operator

(Operator instructions) Our first question comes from the line of Steven Kron with Goldman Sachs.

Steven Kron Goldman Sachs

Hey guys. Question, I guess first on the guidance, Doug, just real quick. Does that include any additional cost-saves as you guys look to expand potentially on that $22 million to $24 million that you laid out?

And then secondly, David, on the unit development front, three units next year, it sounded as if you are going to look for sites to may be go above that. Can you maybe just talk about your current thinking on where you stand for reaccelerating growth down the road and how you are thinking about that?

Doug Benn

The guidance does include the cost savings initiatives that will bring us the $22 million to $24 million for the year. It also includes $8 million to $10 million of cost. The 2010 guidance assumes $8 million to $10 million of continuing cost savings from the cost savings initiatives that we’ve already put in place.

Steven Kron Goldman Sachs

But nothing new beyond that?

Doug Benn

Nothing new.

Steven Kron Goldman Sachs

Okay.

David Overton

I – and Steven, you know I personally am committed to growth. I like to grow the Company. We have our 8000 foot Cheesecake Factory done. We have plans for 7200. So, as landlords, and I think some of them are starting to consider accelerating their building plan, but as great sites come up, we will be very interested in them. I certainly like to see as do somewhere between 10 and as many as 15 or so, but they all have to be great sites. But we have no reason to grow – just to grow right now. The great sites are still very expensive. They haven’t really come down. There is all kinds of people that are always willing to take great sites whether they are clothing or for every 21 can take 40,000 square feet and wipe out some great sites for potential restaurant sites.

Having said that, we are still looking. These three sites were old sites that landlords move. We still have sites that they are – have moved into 2010 and 2011 that we’ve committed and I will fill in as many as I can.

Steven Kron Goldman Sachs

Great. Thank you.

Operator

Our next question comes from the line of Destin Tompkins with Morgan Keegan.

 

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