Cheesecake Factory reports first quarterly profit drop in 8 years

Cheesecake Factory Inc. reported lower quarterly earnings this quarter compared with the same quarter last year, and the first quarterly profit decline in eight years.

The Calabasas Hills-based company (Nasdaq: CAKE) reported net income for the first-quarter of $14.3 million, or 21 cents a share, compared to $18.4 million, or 24 cents a share in the year-ago quarter. The company attributed the lower earnings to an increase in costs and expenses, which rose to $370.08 million from $331.14 million in the same quarter last year.

Quarterly sales rose 10 percent to $393.8 million from $356.6 million in the prior year quarter. Analysts anticipated $396.3 million for the quarter. Cheesecake officials said that California and Florida markets, which account for about one-third of its U.S. retail revenue, have been hard hit by the downturn in the U.S. housing market.

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The company said it is still on target to open as many as nine new restaurants this year, including the initial unit of its newest concept, RockSugar Pan Asian Kitchen.

Cheesecake Factory operates 139 Cheesecake Factories and 13 Grand Lux Cafes across the country. Each Cheesecake Factory averaged $10.4 million in sales in 2007.