Cheesecake Factory profit rises, shares jump
Oct 23 (Reuters) - Cheesecake Factory Inc on Wednesday reported higher quarterly profit after sales at its established namesake restaurants rose more than expected and the company said it grabbed market share from rivals.
Shares of the chain, known for its ample portions and wide array of cheesecakes, jumped 7.4 percent to $45.98 in after-market trading.
Expectations were low going into the quarter since other full-service restaurants ranging from Brinker International Inc's Chili's Grill & Bar and Darden Restaurants Inc's Olive Garden have been hard hit by economic woes and competition.
Cheesecake Factory's third-quarter net income rose slightly to $27.5 million, or 50 cents per share, from $27.2 million, or 49 cents per share, a year earlier.
Excluding a pre-tax charge, the company earned 52 cents per share in the latest quarter.
Sales at restaurants open at least 18 months rose 1 percent at the Cheesecake Factory and fell 2.6 percent at Grand Lux Cafe, its smaller chain.
Analysts polled by Consensus Metrix expected a 0.5 percent rise in sales at Cheesecake Factory restaurants and a 0.1 percent decline for Grand Lux Cafe.
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