The Cheesecake Factory Incorporated (NASDAQ:CAKE) Q2 2016 Earnings Conference Call - Preliminary Transcript

Jul 27, 2016 • 05:00 pm ET


The Cheesecake Factory Incorporated (NASDAQ:CAKE) Q2 2016 Earnings Conference Call - Preliminary Transcript


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Good day, ladies and gentlemen, and welcome to The Cheesecake Factory Incorporated Second Quarter 2016 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, today's conference may be recorded. I would now like to introduce your host for today's conference, Ms. Stacy Feit. Ma'am, please go ahead.

Stacy Shaw Feit

Thank you. Good afternoon and welcome to our second quarter fiscal 2016 earnings call. I'm Stacy Feit, Senior Director of Investor Relations. On the call today are David Overton, our Chairman and Chief Executive Officer; David Gordon, our President and Doug Benn, our Executive Vice President and Chief Financial Officer. Before we begin, let me quickly remind you that during this call, items will be discussed that are not based on historical fact and are considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could be materially different from those stated or implied in forward-looking statements, as a result of the factors detailed in today's press release, which is available on our website at and in our filings with the Securities and Exchange Commission. Allforward-looking statements made on this call speak only as of today's date and the company undertakes no duty to update any forward-looking statements.

David Overton will begin today's call with some opening remarks. Doug will then take you through our operating results in detail and provide our outlook for both the third quarter of 2016, as well as our thoughts on the full fiscal year. Following that, we'll open the call to questions. With that, I'll turn the call over to David.

David M. Overton

Thank you, Stacy. We outperformed casual dining industry in the second quarter of 2016, delivering our 26th consecutive quarter of positive comparable sales. We also generated another quarter of strong bottom-line performance with earnings-per-share exceeding your guidance and up 13%. The Cheesecake Factory continues to be one of the most differentiated casual dining concepts. Our relentless focus on menu innovation, service, hospitality and operational excellence enables us to maintain broad demographic appeal and relevance in an increasingly competitive landscape. We completed the rollout of our enhanced new server training program in the second quarter and the early results are positive. One of our key differentiators is our excellence in service and hospitality where we always strive to do better. We are seeing a measurable lift in guest satisfaction scores and we believe the program will positively impact our guests' intent to return. We also rolled out our mobile payment app, CakePay, nationally in the second quarter.

We are early in the adoption cycle, but encouraged by the initial results. The feedback on the convenience of the app has been positive for both guests and servers alike. We are very excited to have been chosen by MasterCard to be featured in an upcoming national advertising campaign for their Masterpass digital wallet solution. This campaign will garner significant