Cheesecake Factory to Restate Results

Cheesecake Factory Inc. told investors Tuesday not to rely on its previous financial statements for this year, and possibly several years back.

The Calabasas-based restaurant chain also announced that its quarterly financial report would be delayed for a second time.

Cheesecake Factory did not provide an expected date for the release of its restated financial results.

The announcement arose from the company’s continuing review of stock-option granting practices to employees.

Cheesecake Factory said that although the review by the audit committee of its board of directors and outside legal counsel was still underway, it was clear “that the range of potential adjustments would likely be material” to its previous financial reports.

Cheesecake Factory said the pending adjustments derived from “the incorrect application of the measurement date to certain grants of stock options to directors, officers and employees, resulting from administrative oversight and the date selection methods used by the company.”

It said most of the options in question were issued prior to June 30, 2002.

Cheesecake Factory first announced an internal probe of its option granting practices in July.

The company made Tuesday’s announcement after the close of regular trading, where its shares rose 65 cents to $23.78. The stock fell as low as $23.26 in after-hours trading. The stock has declined 36% this year.

Regulators are examining whether companies inflated the value of options granted to executives and other employees by backdating or timing the grants to coincide with days when the stock price was low.

The company operates 107 Cheesecake Factory restaurants nationwide and seven Grand Lux Cafe locations.

It is one of a number of restaurant companies that has suffered recent dips in same-store sales, a key measurement of financial health for eateries and other retailers.