The Cheesecake Factory Inc. (NASDAQ: CAKE) has sent a letter notifying landlords that its restaurants will not pay rent for the month of April due to the business falling off due to the COVID-19 pandemic.
Several news outlets are reporting the news with many citing Eater.com for first reporting the information.
Earlier this week, Cheesecake Factory said the company drew an additional $90 million on its revolving credit facility to increase its cash position. The company has also curtailed its planned unit growth for the year and is evaluating additional measures to further preserve financial flexibility, according to a news release from the Calabasas, California-based company.
That news release also said all of the Company’s restaurants have transitioned to an off-premise operating model as required by state and local officials.
The company has 294 restaurants in the United States and Canada under the brands of The Cheesecake Factory and North Italia; and a collection of Fox Restaurant Concepts, as well as 26 The Cheesecake Factory restaurants operated under licensing agreements internationally.
The company has three locations in Tarrant County in Sundance Square, The Parks Mall in Arlington and in Southlake Town Square. There are additional locations in Dallas and Frisco.