Expansion Bites Into Cheesecake Factory Profits

Cheesecake Factory Inc., a Calabasas restaurant chain, saw its earnings slide in the second quarter and first half of 1996 because of the costs of opening new restaurants and expanding its bakery facility.

In the three months that ended June 30, the company earned $2.06 million, down 13% from the $2.38 million in net income a year earlier. Its quarterly revenue was $39.2 million, up 38% from $28.5 million.

For the six months, Cheesecake Factory had a $3.69 million profit, an 11% decline from earnings of $4.18 million in 1995’s first half. Its revenue rose 40%, to $74.6 million from $53.5 million.