After a Decline in Sales, Cheesecake Factory CEO Blames Bad Weather
Cheesecake Factory, the national restaurant chain that aims to please every palate with its 250+ item menu, is currently experiencing a sales slump. Things are slow enough that executives at the brand felt compelled to underscore and explain the dip in a statement that was sent out to its investors. But unlike recent accusations that millennials are to blame for "killing" chain restaurants, Cheesecake Factory pinned their woes on Mother Nature.
Their explanation was fairly simple: There's been bad weather and rain recently in the restaurant's Eastern and Midwestern locations.
If you're stumped and looking for the connection between rainclouds and cheesecake sales, never fear; CEO David Overton went into more detail in full in the statement: “We have seen heightened volatility in week-to-week sales trends, indicative of uncertainty on the part of many consumers. Specifically, we have seen pockets of softness as we moved through the quarter, notably in the East and Midwest where we also faced unfavorable weather that reduced patio usage.”
Alongisde the memo, the chain shifted its earnings outlook to reflect their prediction that the upcoming quarter will experience a small but significant decrease in sales, rather than a small but significant increase.
"That marked the biggest intraday decline in more than two years," the report continued. "The outlook cast doubt on Cheesecake Factory’s ability to endure a broader slump in the restaurant industry."
Just one question: Can we use that rainy day excuse when things go wrong for us? Because that'd really help at work. And in our relationships. And with our parents.
...On second thought, maybe we'd rather just stick with the truth. It turns out investors weren't so easily fooled by the company's statement, however creative it was. The brand's stock prices have dropped by as much as 11 percent.