The Wall Street Journal-20080206-Cheesecake Factory Profit Falls 35-

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Cheesecake Factory Profit Falls 35%

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Cheesecake Factory Inc.'s fourth-quarter earnings fell 35% and the operator of casual-dining chains slashed its planned restaurant openings for the year.

Revenue for the Calabasas Hills, Calif., company rose 13% to $406.3 million from $360.7 million in the year-ago period. But comparable restaurant sales slipped 0.4%, which the company attributed to lower- than-expected restaurant traffic and severe winter weather in some areas.

Net income totaled $13.3 million, or 19 cents a share, down from $20.4 million, or 26 cents a share, a year earlier, due to legal charges, greater interest expense and lower interest income.

The company plans to open between seven and nine new restaurants for the year. Last year it opened 21 restaurants. The company also said it will implement a 1.5% menu price increase.

As recently as Oct. 23, Cheesecake Factory had put 2008 openings at as many as 17, including 12 to 13 of its namesake units and three to four Grand Lux Cafes. Revised plans call for six to eight Cheesecake Factories, the first of its new Rock Sugar Pan Asian Kitchens and no Grand Luxe Cafes.