Los Angeles, Oct 17 - Restaurant chain Cheesecake Factory Inc said on Thursday it has temporarily stopped buying company shares to conserve cash amid a slowing U.S. economy and global credit crunch, and its stock fell 5 percent.
Cheesecake Factory said in a regulatory filing that the move was "a prudent and appropriate action in light of the unprecedented crisis in the global financial markets and the indeterminate future impact it could have on the overall economy."
The company had previously said it planned to repurchase between $150 million and $200 million of its common stock during fiscal 2008.
The casual dining chain has so far repurchased 9.6 million shares at a total cost of about $172 million.
The Calabasas Hills, California-based company said it has authorization for about 7.9 million additional shares remaining under its temporarily suspended 31 million share repurchase authorization.
Cheesecake Factory shares fell to $9.39 in extended trade from their Nasdaq close of $9.89.