Cheesecake Factory Plans to Offer Stock to Public
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The Cheesecake Factory Inc. in Calabasas plans to sell 2.5 million shares of common stock in an initial public offering expected to produce gross proceeds of about $35 million for the restaurant operator.
The stock sale, with an expected price of $13 to $15 per share, is being underwritten by Montgomery Securities and First Boston Corp. An additional 178,571 shares will be offered for sale by existing shareholders.
In a filing with the Securities and Exchange Commission, the company said it plans to use funds raised in the offering to repay debt, develop additional restaurants and for working capital. The company has four restaurants in Southern California and one in Washington, D.C., and said it plans to open two new restaurants a year.
The Cheesecake Factory had a profit of $1.51 million in 1991, on $46.4 million in revenue, according to the filing.
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