The Cheesecake Factory Incorporated's Q3 Hurt By Dairy Costs

The Cheesecake Factory Inc.

posted a nearly 12 percent decline in third-quarter earnings as higher dairly costs hurt profits. Cheesecake changed hands recently down nearly 4 percent at $42.75 a share. Chief Executive David Overton said he sees the dairy market "beginning to correct," adding that that the company will "continue to grow our sales and earnings into 2015 and beyond." Higher dairy costs added about $4.3 million to third-quarter expense, while same-store sales grew 1.8 percent. Third-quarter net income fell nearly 12 percent to $24.2 million, or $0.48 cents a share, from $27.5 million, or $0.50 cents a share a year earlier. Sales grew 6.2 percent to $ 499.1 million, from $469.7 million. Wall Street expected earnings of $0.57 cents a share on sales of $497.9 million. Same-store sales grew 1.8 percent. Wall Street expected $0.57 cents a share on sales of $497.9 million.