Earnings Decline for Cheesecake Factory

Cheesecake Factory Inc., the Calabasas restaurant operator, reported a 28% drop in its third-quarter earnings, due partly to the costs of opening large restaurants in “premier” locations and a new bakery production facility.

The company’s profit for the three months ending Sept. 29 was $1.72 million, compared with earnings of $2.39 million a year earlier. Its revenue rose 44%, to $42.2 million from $29.4 million.

For the nine months, Cheesecake Factory earned $5.41 million, an 18% decline from net income of $6.57 million in the same period in 1995. Its nine-month revenue was $116.8 million, a 41% gain from $82.8 million in revenue.