With 42 years of history as a guide, we believe we will overcome these challenging near-term operating conditions and be even better positioned for the long term,” concluded Overton. While the situation remains fluid, we are taking decisive but difficult actions to enable our restaurants to manage through the specific circumstances in their communities, while further strengthening our liquidity position. “The coronavirus pandemic has had an unprecedented impact on the restaurant industry as containment measures escalate. At the same time, we are grateful for the opportunity at present to continue to serve and comfort our guests via to-go and delivery orders.” “We have been following the guidance of the CDC and our local health departments and will continue to do so throughout this evolving situation. “As we navigate through COVID-19, the health and well-being of our staff members and guests remains our number one priority,” said David Overton, Chairman and Chief Executive Officer. The company has also curtailed its planned unit growth for the year and is evaluating additional measures to further preserve financial flexibility. In addition, the company drew an additional $90 million on its revolving credit facility to increase its cash position. Currently, 27 locations across the company’s concepts, including two The Cheesecake Factory restaurants, are temporarily closed. The Cheesecake Factory restaurants have a long-standing business in the off-premise channel, with historical sales volumes approaching the size of many stand-alone restaurants, which is enabling the company’s restaurants to operate sustainably at present under this model.
Cheesecake factory closing update#
The Cheesecake Factory Incorporated Monday provided a business update related to the impact of COVID-19.Īll of the company’s restaurants have transitioned to an off-premise operating model as required by state and local officials. to 2 p.m.ĭenny’s is open 24 hours a day, seven days a week.Ĭhipotle Mexican Grill, Inc., located at The Shops on Lake Avenue and at Hastings Village, is open from 10:30 a.m. to 9 p.m., with brunch served from 10 a.m. The Cheesecake Factory in Pasadena is open for take-out and delivery from 11 a.m. Comparable restaurant sales declined 9.8 percent, but digital sales grew 216.3 percent and accounted for 60.7 percent of sales for the quarter. also reported second-quarter highlights in July, saying their revenue decreased 4.8 percent to $1.4 billion year-over-year. The chain announced in May that it was permanently closing 15 stores in New York and laying off 524 workers due to “unforeseeable business circumstances prompted by COVID-19.”Ĭhipotle Mexican Grill, Inc. In June, The Cheesecake Factory said it had to close or cut back the operations of 87 restaurants for a few weeks because of the demonstrations and riots that followed the death of George Floyd.ĭenny’s reported total operating revenues of $40.2 million for the second quarter, and a domestic systemwide same-store sales decrease of 56.9 percent compared to the second quarter last year. Most of the chain’s stores, including Pasadena, have been operating sustainably by offering take-out and delivery, but the COVID-19 crisis forced it to close 27 restaurants in March. The company said it was “evaluating additional measures to further preserve financial flexibility.” In March, The Cheesecake Factory alerted investors that it was suspending all development, withdrawing its financial guidance for 2020, and drawing down $90 million from its revolving credit facility. restaurant companies most likely to default. and Bloomin’ Brands Inc., which owns Outback Steakhouse, were among the largest publicly traded U.S. and The Cheesecake Factory, along with Dave & Buster’s Entertainment Inc.