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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported):  May 7, 2024

 

THE CHEESECAKE FACTORY INCORPORATED

(Exact name of registrant as specified in its charter)

 

Delaware   0-20574   51-0340466
(State or other jurisdiction   (Commission   (IRS Employer
of incorporation)   File Number)   Identification No.)

 

26901 Malibu Hills Road
Calabasas Hills, California		   91301
(Address of principal executive offices)   (Zip Code)

 

Registrant’s telephone number, including area code (818) 871-3000

 

Not Applicable

(Former name or former address, if changed since last report.)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class:   Trading Symbol(s)   Name of each exchange on which registered:
Common Stock, par value $.01 per share   CAKE   The Nasdaq Stock Market LLC

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ¨

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

 

 

 

 

 

 

The following information under Item 2.02 of Form 8-K, “Results of Operations and Financial Condition” and Item 7.01 of Form 8-K, “Regulation FD Disclosure” is intended to be furnished. This information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date of this report, regardless of any general incorporation language in the filing.

 

ITEM 2.02RESULTS OF OPERATIONS AND FINANCIAL CONDITION

 

In a press release dated May 8, 2024, a copy of which is furnished as Exhibit 99.1 to this report, The Cheesecake Factory Incorporated (the “Company”) reported financial results for the first quarter of fiscal 2024, which ended on April 2, 2024.

 

ITEM 7.01REGULATION FD DISCLOSURE

 

On May 8, 2024, the Company posted an updated Investor Presentation on the Company’s Investor Relations website at investors.thecheesecakefactory.com. A copy of the presentation is furnished as Exhibit 99.2 hereto and is incorporated by reference herein.

 

ITEM 8.01OTHER EVENTS

 

Additionally, on May 7, 2024, the Board of Directors of the Company (the “Board”) declared a quarterly cash dividend of $0.27 per share which will be paid on June 4, 2024 to the stockholders of record of each share of the Company’s common stock at the close of business on May 22, 2024. Future decisions to pay or to increase or decrease dividends are at the discretion of the Board and will depend upon operating performance and other factors.

 

ITEM 9.01FINANCIAL STATEMENTS AND EXHIBITS

 

(d)         Exhibits

 

  99.1 Press release dated May 8, 2024 entitled “The Cheesecake Factory Reports Results for First Quarter of Fiscal 2024”
  99.2 The Cheesecake Factory Investor Presentation dated May 8, 2024
  104.1 Cover Page Interactive Data File (embedded within the inline XBRL document)

 

 

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date:    May 8, 2024 THE CHEESECAKE FACTORY INCORPORATED
   
  By: /s/ Matthew E. Clark
    Matthew E. Clark
    Executive Vice President and Chief Financial Officer

 

 

 

 

Exhibit 99.1

 

 

 

FOR IMMEDIATE RELEASE Contact: Etienne Marcus
  (818) 871-3000
  investorrelations@thecheesecakefactory.com

 

THE CHEESECAKE FACTORY REPORTS RESULTS FOR

FIRST QUARTER OF FISCAL 2024

 

CALABASAS HILLS, Calif. – May 8, 2024 – The Cheesecake Factory Incorporated (NASDAQ: CAKE) today reported financial results for the first quarter of fiscal 2024, which ended on April 2, 2024.

 

Total revenues were $891.2 million in the first quarter of fiscal 2024 compared to $866.1 million in the first quarter of fiscal 2023. Net income and diluted net income per share were $33.2 million and $0.68, respectively, in the first quarter of fiscal 2024.

 

The Company recorded a pre-tax net expense of $3.2 million related to impairment of assets and lease termination expenses and Fox Restaurant Concepts (“FRC”) acquisition-related items. Excluding the after-tax impact of these items, adjusted net income and adjusted net income per share for the first quarter of fiscal 2024 were $35.6 million and $0.73, respectively. Please see the Company’s reconciliation of non-GAAP financial measures at the end of this press release.

 

Comparable restaurant sales at The Cheesecake Factory restaurants declined 0.6% year-over-year in the first quarter of fiscal 2024.

 

“The Cheesecake Factory restaurants comparable sales and traffic once again meaningfully outperformed the industry,” said David Overton, Chairman and Chief Executive Officer. “Our first quarter sales improved throughout the quarter culminating at the high-end of our expectations. Our operators continued to deliver improvements in labor productivity, food efficiency, and hourly staff and manager retention, all of which contributed to significant growth in profitability.”

 

“Our success is undeniably linked to the hard work and dedication of our experienced restaurant teams who enable us to deliver the distinct, high quality dining experiences that have distinguished The Cheesecake Factory as one of the most differentiated restaurant concepts in the casual dining industry for over 45 years. We are honored to have been named to the Fortune magazine '100 Best Companies to Work For' list for the 11th consecutive year, reinforcing our belief that we are an employer of choice.”

 

 

26901 Malibu Hills Road, Calabasas Hills, CA 91301 · Telephone (818) 871-3000

 

 

 

 

Development

 

During the first quarter of fiscal 2024, the Company opened five new restaurants, including two North Italia restaurants, two FRC restaurants, and one Flower Child location. In addition, one Cheesecake Factory restaurant opened internationally under a licensing agreement in Mexico. Subsequent to quarter-end, one Cheesecake Factory restaurant opened internationally under a licensing agreement in Asia.

 

The Company continues to expect to open as many as 22 new restaurants in fiscal 2024, including as many as three to four The Cheesecake Factory restaurants, six to seven North Italia restaurants, six to seven Flower Child locations, and six to seven FRC restaurants.

 

Liquidity and Capital Allocation

 

As of April 2, 2024, the Company had total available liquidity of $296.7 million, including a cash balance of $60.2 million and availability on its revolving credit facility of $236.5 million. Total principal amount of debt outstanding was $475 million, including $345 million in principal amount of 0.375% convertible senior notes due 2026 and $130 million in principal amount drawn on the Company’s revolving credit facility.

 

The Company repurchased approximately 359,400 shares of its stock at a cost of $12.5 million in the first quarter of fiscal 2024. In addition, the Company’s Board of Directors has declared a quarterly dividend of $0.27 per share to be paid on June 4, 2024 to shareholders of record at the close of business on May 22, 2024.

 

Conference Call and Webcast

 

The Company will hold a conference call to review its results for the first quarter of fiscal 2024 today at 2:00 p.m. Pacific Time. The conference call will be webcast live on the Company’s website at investors.thecheesecakefactory.com and a replay of the webcast will be available through June 7, 2024.

 

About The Cheesecake Factory Incorporated

 

The Cheesecake Factory Incorporated is a leader in experiential dining. We are culinary forward and relentlessly focused on hospitality. Delicious, memorable experiences created by passionate people – this defines who we are and where we are going. We currently own and operate 335 restaurants throughout the United States and Canada under brands including The Cheesecake Factory®, North Italia®, Flower Child® and a collection of other FRC brands. Internationally, 34 The Cheesecake Factory® restaurants operate under licensing agreements. Our bakery division operates two facilities that produce quality cheesecakes and other baked products for our restaurants, international licensees and third-party bakery customers. In 2024, we were named to the FORTUNE Magazine “100 Best Companies to Work For®” list for the eleventh consecutive year. To learn more, visit www.thecheesecakefactory.com, www.northitalia.com, www.iamaflowerchild.com and www.foxrc.com.

 

From Fortune. ©2024 Fortune Media IP Limited. All rights reserved. Used under license. Fortune® and Fortune 100 Best Companies to Work For® are registered trademarks of Fortune Media IP Limited and are used under license. Fortune and Fortune Media IP Limited are not affiliated with, and do not endorse products or services of, The Cheesecake Factory Incorporated.

 

 

26901 Malibu Hills Road, Calabasas Hills, CA 91301 · Telephone (818) 871-3000

 

 

 

 

Safe Harbor Statement

 

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as codified in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, without limitation, statements regarding restaurant development. Such forward-looking statements include all other statements that are not historical facts, as well as statements that are preceded by, followed by or that include words or phrases such as “believe,” “plan,” “will likely result,” “expect,” “intend,” “will continue,” “is anticipated,” “estimate,” “project,” “may,” “could,” “would,” “should” and similar expressions. These statements are based on current expectations and involve risks and uncertainties which may cause results to differ materially from those set forth in such statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and that undue reliance should not be placed on such statements. These forward-looking statements may be affected by various factors including: economic, public health and political conditions that impact consumer confidence and spending, including increased interest rates, periods of heightened inflation and market instability, and armed conflicts; supply chain disruptions; demonstrations, political unrest, potential damage to or closure of the Company’s restaurants and potential reputational damage to the Company or any of its brands; pandemics and related containment measures, including the potential for quarantines or restriction on in-person dining; acceptance and success of The Cheesecake Factory in international markets; acceptance and success of North Italia, Flower Child and Other Fox Restaurant Concepts restaurants; the risks of doing business abroad through Company-owned restaurants and/or licensees; foreign exchange rates, tariffs and cross border taxation; changes in unemployment rates; increases in minimum wages and benefit costs; the economic health of the Company’s landlords and other tenants in retail centers in which its restaurants are located, and the Company’s ability to successfully manage its lease arrangements with landlords; the economic health of suppliers, licensees, vendors and other third parties providing goods or services to the Company; the timing of new unit development and related permitting; compliance with debt covenants; strategic capital allocation decisions including with respect to share repurchases or dividends; the ability to achieve projected financial results; the resolution of uncertain tax positions with the Internal Revenue Service and the impact of tax reform legislation; changes in laws impacting the Company’s business; adverse weather conditions in regions in which the Company’s restaurants are located; factors that are under the control of government agencies, landlords and other third parties; the risks, costs and uncertainties associated with opening new restaurants; and other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission (“SEC”). Forward-looking statements speak only as of the dates on which they are made, and the Company undertakes no obligation to publicly update or revise any forward-looking statements or to make any other forward-looking statements, whether as a result of new information, future events or otherwise, unless required to do so by law. Investors are referred to the full discussion of risks and uncertainties associated with forward-looking statements and the discussion of risk factors contained in the Company’s latest Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K as filed with the SEC, which are available at www.sec.gov.

 

 

26901 Malibu Hills Road, Calabasas Hills, CA 91301 · Telephone (818) 871-3000

 

 

 

 

The Cheesecake Factory Incorporated

Condensed Consolidated Financial Statements

(unaudited; in thousands, except per share and statistical data)

 

   13 Weeks Ended   13 Weeks Ended 
Consolidated Statements of Income  April 2, 2024   April 4, 2023 
   Amount   Percent of
Revenues		   Amount   Percent of
Revenues		 
Revenues  $891,223    100.0%  $866,114    100.0%
Costs and expenses:                    
  Food and beverage costs   203,253    22.8%   206,224    23.8%
  Labor expenses   320,930    36.0%   311,528    36.0%
  Other operating costs and expenses   233,541    26.3%   230,929    26.7%
  General and administrative expenses   60,366    6.8%   54,069    6.2%
  Depreciation and amortization expenses   24,756    2.8%   22,955    2.7%
  Impairment of assets and lease termination expenses   2,083    0.2%   2,242    0.3%
  Acquisition-related contingent consideration, compensation
  and amortization expenses		   1,121    0.1%   1,189    0.1%
  Preopening costs   5,880    0.6%   3,052    0.3%
    Total costs and expenses   851,930    95.6%   832,188    96.1%
Income from operations   39,293    4.4%   33,926    3.9%
Interest and other expense, net   (1,761)   (0.2)%   (1,880)   (0.2)%
Income before income taxes   37,532    4.2%   32,046    3.7%
Income tax provision   4,341    0.5%   3,996    0.5%
Net income  $33,191    3.7%  $28,050    3.2%
                     
Basic net income per share  $0.70        $0.58      
Basic weighted average shares outstanding   47,749         48,694      
                     
Diluted net income per share  $0.68        $0.56      
Diluted weighted average shares outstanding   48,662         49,778      

 

 

26901 Malibu Hills Road, Calabasas Hills, CA 91301 · Telephone (818) 871-3000

 

 

 

 

   13 Weeks Ended   13 Weeks Ended 
Selected Segment Information  April 2, 2024   April 4, 2023 
Revenues:          
The Cheesecake Factory restaurants  $667,794   $656,000 
North Italia   70,874    63,303 
Other FRC   74,229    68,640 
Other   78,326    78,171 
Total  $891,223   $866,114 
           
Income/(loss) from operations:          
The Cheesecake Factory restaurants  $86,071   $78,386 
North Italia   3,170    4,606 
Other FRC   6,292    8,711 
Other   (56,240)   (57,777)
Total  $39,293   $33,926 
           
Depreciation and amortization expenses:          
The Cheesecake Factory restaurants  $16,843   $16,018 
North Italia   1,971    1,467 
Other FRC   2,425    1,927 
Other   3,517    3,543 
Total  $24,756   $22,955 
           
Impairment of assets and lease termination expenses:          
The Cheesecake Factory restaurants  $1,859   $93 
North Italia   -    - 
Other FRC   -    55 
Other   224    2,094 
Total  $2,083   $2,242 
           
Preopening costs:          
The Cheesecake Factory restaurants  $1,758   $1,448 
North Italia   2,002    446 
Other FRC   1,724    721 
Other   396    437 
Total  $5,880   $3,052 

 

   13 Weeks Ended   13 Weeks Ended 
   April 2, 2024   April 4, 2023 
The Cheesecake Factory restaurants operating information:          
Comparable restaurant sales vs. prior year   (0.6)%   5.7%
Restaurants opened during period   -    - 
Restaurants open at period-end   216    210 
Restaurant operating weeks   2,807    2,737 
           
North Italia operating information:          
Comparable restaurant sales vs. prior year   3%   9%
Restaurants opened during period   2    - 
Restaurants open at period-end   38    33 
Restaurant operating weeks   480    429 
           
Other Fox Restaurant Concepts (FRC) operating information:(1)          
Restaurants opened during period   2    1 
Restaurants open at period-end   42    35 
Restaurant operating weeks   528    451 
           
Other operating information:(2)          
Restaurants opened during period   1    1 
Restaurants open at period-end   40    40 
Restaurant operating weeks   516    515 
           
Number of company-owned restaurants:          
The Cheesecake Factory   216      
North Italia   38      
Other FRC   42      
Other   40      
Total   336      
           
Number of international-licensed restaurants:          
The Cheesecake Factory   33      

 

(1) The Other FRC segment includes all FRC brands except Flower Child.

(2) The Other segment includes the Flower Child, Grand Lux Cafe and Social Monk Asian Kitchen concepts, as well as the Company's third-party bakery, international and consumer packaged goods businesses, unallocated corporate expenses and gift card costs.

 

Selected Consolidated Balance Sheet Information  April 2, 2024   January 2, 2024 
Cash and cash equivalents  $60,220   $56,290 
Long-term debt, net of issuance costs (1)   470,551    470,047 

 

(1) Includes $340.0 million net balance of 0.375% convertible senior notes due 2026 (principal amount of $345 million less $4.4 million in unamortized issuance costs) and $130 million drawn on the Company's revolving credit facility. The unamortized issuance costs were recorded as a contra-liability and netted with long-term debt on the Condensed Consolidated Balance Sheet and are being amortized as interest expense.

 

 

26901 Malibu Hills Road, Calabasas Hills, CA 91301 · Telephone (818) 871-3000

 

 

 

 

Reconciliation of Non-GAAP Results to GAAP Results

 

In addition to the results provided in accordance with accounting principles generally accepted in the United States of America (“GAAP”) in this press release, the Company is providing non-GAAP measurements which present net income and net income per share excluding the impact of certain items. The non-GAAP measurements are intended to supplement the presentation of the Company’s financial results in accordance with GAAP. These non-GAAP measures are calculated by eliminating from net income and diluted net income per share the impact of items the Company does not consider indicative of its ongoing operations. The Company uses these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons.

 

The Cheesecake Factory Incorporated

Reconciliation of Non-GAAP Financial Measures

(unaudited; in thousands, except per share data)

 

   13 Weeks Ended   13 Weeks Ended 
   April 2, 2024   April 4, 2023 
Net income (GAAP)  $33,191   $28,050 
  Impairment of assets and lease termination expenses(1)   2,083    2,242 
  Acquisition-related contingent consideration, compensation and amortization expenses(2)   1,121    1,189 
  Tax effect of adjustments(3)   (833)   (892)
Adjusted net income (non-GAAP)  $35,562   $30,589 
           
Diluted net income per share (GAAP)  $0.68   $0.56 
  Impairment of assets and lease termination expenses   0.04    0.05 
  Acquisition-related contingent consideration, compensation and amortization expenses   0.02    0.02 
  Tax effect of adjustments   (0.02)   (0.02)
Adjusted net income per share (non-GAAP)(4)  $0.73   $0.61 

 

(1) A detailed breakdown of impairment of assets and lease termination expenses recorded in the thirteen weeks ended April 2, 2024 and April 4, 2023 can be found in the Selected Segment Information table.

(2) Represents changes in the fair value of the deferred consideration and contingent consideration and compensation liabilities related to the North Italia and FRC acquisition, as well as amortization of acquired definite-lived licensing agreements.

(3) Based on the federal statutory rate and an estimated blended state tax rate, the tax effect on all adjustments assumes a 26% tax rate for the fiscal 2024 and 2023 periods.

(4) Adjusted net income per share may not add due to rounding.

 

 

26901 Malibu Hills Road, Calabasas Hills, CA 91301 · Telephone (818) 871-3000

 

 

 

Exhibit 99.2

 

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INVESTOR PRESENTATION May 8, 2024

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SAFE HARBOR STATEMENT 2 This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. This includes, without limitation, financial guidance and projections, including underlying assumptions, and statements with respect to expectations of the Company’s future financial condition, results of operations, cash flows, plans, targets, goals, objectives, performance, growth potential, engines and opportunities and expected growth rates and targets; long-term outlook; industry-leading comparable sales growth, retention and competitive position; quality control and supply chain efficiencies; operational execution and retention; annualized average unit volume; the Company’s differentiation and strong foothold in the off-premise channel; statements from the Company’s corporate social responsibility report; the opportunity for additional domestic and foreign locations and licensees and territories; target returns for new restaurant openings; international expansion; North Italia and Fox Restaurant Concepts (“FRC”) as growth drivers and FRC as an incubation engine; new restaurant targeted ranges and unit growth rates. Such forward-looking statements include all other statements that are not historical facts, as well as statements that are preceded by, followed by or that include words or phrases such as “believe,” “plan,” “will likely result,” “expect,” “intend,” “will continue,” “is anticipated,” “estimate,” “project,” “may,” “could,” “would,” “should” and similar expressions. These statements are based on current expectations and involve risks and uncertainties which may cause results to differ materially from those set forth in such statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and that undue reliance should not be placed on such statements. These forward-looking statements may be affected by various factors including: economic, public health and political conditions that impact consumer confidence and spending, including increased interest rates, periods of heightened inflation and market instability, and armed conflicts; supply chain disruptions; demonstrations, political unrest, potential damage to or closure of our restaurants and potential reputational damage to us or any of our brands; pandemics and related containment measures, including the potential for quarantines or restriction on in-person dining; acceptance and success of The Cheesecake Factory in international markets; acceptance and success of North Italia and the FRC concepts; the risks of doing business abroad through Company-owned restaurants and/or licensees; foreign exchange rates, tariffs and cross border taxation; changes in unemployment rates; increases in minimum wages and benefit costs; the economic health of our landlords and other tenants in retail centers in which our restaurants are located, and our ability to successfully manage our lease arrangements with landlords; the economic health of suppliers, licensees, vendors and other third parties providing goods or services to us; the timing of our new unit development and related permitting; compliance with debt covenants; strategic capital allocation decisions including with respect to share repurchases or dividends; the ability to achieve projected financial results; the resolution of uncertain tax positions with the Internal Revenue Service and the impact of tax reform legislation; changes in laws impacting our business; adverse weather conditions in regions in which our restaurants are located; factors that are under the control of government agencies, landlords and other third parties; the risks, costs and uncertainties associated with opening new restaurants; and other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission (“SEC”). Forward-looking statements speak only as of the dates on which they are made and the Company undertakes no obligation to publicly update or revise any forward-looking statements or to make any other forward-looking statements, whether as a result of new information, future events or otherwise, unless required to do so by law. Investors are referred to the full discussion of risks and uncertainties associated with forward-looking statements and the discussion of risk factors contained in the Company’s latest Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K as filed with the SEC, which are available at www.sec.gov.

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INVESTMENT HIGHLIGHTS 3 • Experiential dining category leader with diversified growth engines • Best-in-class operational execution and industry-leading retention • Significant growth opportunities driving one of the highest expected growth rates in the casual dining industry • Leveraging the Company’s differentiation and strong foothold in the off-premise channel to support the business

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THE CHEESECAKE FACTORY - GLOBAL FOOTPRINT 4 High quality, high profile locations worldwide Company-Owned: 216 (Including Toronto, Canada) Toronto International – Licensed: 34 Mexico City (5) Guadalajara Saudi Arabia (4) UAE (6) Kuwait (3) Qatar (3) Bahrain (1) Monterrey Opportunity for 300 Domestic Locations Over Time & Continued International Expansion Querétaro Shanghai (3) Hong Kong Beijing Macau Chengdu Bangkok Hangzhou

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5 FILLING WHITE SPACE FOR AN ON-TREND, CONTEMPORARY ITALIAN OFFERING • Potential for 200 domestic locations over time • 38 locations in 13 states & Washington D.C. • All dishes handmade from scratch daily • Unique menu items tailored to local markets • Serving lunch, dinner, weekend brunch & weekday happy hour • Average check of low to mid $30s for lunch and low to mid $40s for dinner • ~25% alcohol mix 1Q24 Comp Sales (vs. 1Q23): 3%

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FOX RESTAURANT CONCEPTS (FRC) IS AN INCUBATION ENGINE INNOVATING CONCEPTS FOR THE FUTURE 6 Growth Boutique Brands 42 FRC Locations Across the U.S. Potential Growth 31 Locations Across the U.S.

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13 New Restaurants Opened in 2022 3 The Cheesecake Factory locations 4 North Italia locations 3 Flower Child locations 3 FRC locations 16 New Restaurants Opened in 2023 6 The Cheesecake Factory locations 3 North Italia locations 1 Flower Child location 6 FRC locations ACCELERATING UNIT GROWTH ACROSS CONCEPTS 7 New Restaurants Opened in 2024 Culinary Dropout | Atlanta, GA North Italia | Dallas, TX Culinary Dropout | Birmingham, AL AS MANY AS 22 NEW UNITS PLANNED FOR 2024 Flower Child | Plano, TX North Italia | Houston, TX

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9 Extensive and Innovative Menu Menu 225+ Items Made Fresh, From Scratch Innovative, High-Quality Cheesecakes and Other Baked Dessert Items Integrated Bakery Best-in-Class Operational Execution Experienced, Dedicated Managers Restaurant Operations A HIGHLY DIFFERENTIATED CONCEPT High-energy Atmosphere Ambiance Exceptional Service and Hospitality

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10 INTEGRATED BAKERY – THE “CHEESECAKE” MAGIC Industry-Leading Dessert Sales Enables creativity, quality control and supply chain efficiencies 60 Varieties of cheesecakes & 2 desserts Bakery production facilities * Percent of total sales 17% FY 2023* 1 FY 2019* 6%

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BEST-IN-CLASS OPERATIONAL EXECUTION AND INDUSTRY-LEADING RETENTION 11 “We found that food and beverage innovation is table stakes; you need to do it, but it’s not sustainable. The ironclad correlation with success? It was GM retention.” – Wally Doolin, Black Box Intelligence** 11th CONSECUTIVE YEAR Recognized as a best workplace for diversity, millennials and women Average Tenure by Position* 34 years 25 years 20 years 19 years 12 years 11 years Senior VP of Operations Regional Vice Presidents Area Directors of Operations Area Kitchen Operations Managers General Managers Executive Kitchen Managers *Tenure data as of Fiscal Year 2023; **Restaurant Business, May 2018 2023 PEOPLE Companies that Care logo © 2023 TI Gotham, Inc., a Dotdash Meredith company. Used under license. From Fortune. ©2023, ©2024 Fortune Media IP Limited. All rights reserved. Used under license. Fortune® and Fortune 100 Best Companies to Work For® are registered trademarks of Fortune Media IP Limited and are used under license. Fortune and Fortune Media IP Limited are not affiliated with, and do not endorse products or services of, The Cheesecake Factory Incorporated.

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CULT STATUS & STRONG CONSUMER ENGAGEMENT 12 Reaching 5M+ users 5M fans 1M+ followers 350K followers Millions of Viewers Note: Statistics as of April 24, 2024 360K followers

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$12.2 $9.5 $9.5 $7.6 $6.1 $5.5 $4.7 $4.1 $3.6 $3.4 $3.3 Yard House Maggiano's Texas Roadhouse BJ's Olive Garden LongHorn Outback Carrabba's Chili's Bonefish With a Moderate Average Check Highest Unit Volumes ($ in millions) Source: Latest SEC 10-K filings and company presentations Average check for The Cheesecake Factory defined as on-premise average check for FY 2023 $35 $34 $32 $31 $28 $26 $25 $23 $22 $21 $19 Yard House Bonefish Maggiano's Outback LongHorn Carraba's Olive Garden Texas Roadhouse BJ's Chili's 13

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LEVERAGING THIS DIFFERENTIATION IN THE OFF-PREMISE CHANNEL 14 *Annual unit volume equivalent based on total system restaurant average weekly sales 9% 16% 43% 32% 25% 22% 22% Off-Premise Sales (% of Total Revenue) ~$2.7 million per restaurant (annualized based on 1Q24*) Reflecting COVID-19 dining restrictions Upgraded Takeout Packaging

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FURTHER LEANING IN TO CONVENIENCE 15 I’m on my way Enter my parking spot Bring my order out

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CORPORATE SOCIAL RESPONSIBILITY 16 OBJECTIVES Guided by our core values we are committed to achieving our sustainability goals and creating a sustainable future for our staff, local communities and the environment we all share COMMITMENTS ACHIEVEMENTS 26% Annual waste diverted away from landfill 15% Lower Energy Intensity since 2016 ~16K METRIC TONS Lower annual CO2 emissions since 2016 $6.4M Donated to Feeding America® since 2008 7.9M Pounds of food donated to non-profits since 2007 Please refer to the 2023 Cheesecake Factory Corporate Social Responsibility Report. Data and information included in the report represents all wholly-owned and managed operations unless explicitly noted otherwise. The sustainability performance of FRC is not included in our 2023 report but is included in our SBTi targets. From Fortune. ©2024 Fortune Media IP Limited. All rights reserved. Used under license. Fortune® and Fortune 100 Best Companies to Work For® are registered trademarks of Fortune Media IP Limited and are used under license. Fortune and Fortune Media IP Limited are not affiliated with, and do not endorse products or services of, The Cheesecake Factory Incorporated. 11TH Year FORTUNE 100 Best Companies to Work For® PEOPLE Companies that Care® award recipient 6% Lower overall GHGs from 2022

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Confidential 17 Financial Resiliency Sales Leadership Growth Opportunities

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Culinary forward. First class hospitality. Concepts like no other. DIVERSIFYING OUR PORTFOLIO ACROSS EXPERIENTIAL CONCEPTS FOR GROWTH Diversified across segment, cuisine, price point and occasion Highly differentiated, well-positioned experiential concepts

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19 DRIVING STRONG SALES GROWTH vs 2022 3% 8% FY 2023 COMP SALES 3.0% AVERAGE WEEKLY SALES (2) FY 2023 vs 2022 (1) 1Q24 Average Unit Volumes (AUV) annualized based on average weekly sales (2) FRC excludes Flower Child vs 1Q23 (8)% ~$237,900 Equates to $12.4M Annualized AUV(1) AVERAGE WEEKLY SALES ~$147,700 Equates to $7.7M Annualized AUV(1) ~$140,600 Equates to $7.3M Annualized AUV(1) 3% Q1 2024 COMP SALES (0.6)% AVERAGE WEEKLY SALES (2) Q1 2024 vs 1Q23

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2024 UNDERLYING KEY ASSUMPTIONS(1) 20 (1) Assumes no material operating or consumer disruptions (2) Future decisions to pay or to increase or decrease dividends or to repurchase shares are at the discretion of the Board and will be dependent on several factors Consolidated Sales Approximately $3.6 Billion CCF AUVs Approximately $12.4 Million Net Income Margin Targeting ~4.25% at the stated sales level New Unit Growth As many as 22 New Restaurant Openings • 3-4 The Cheesecake Factory locations • 6-7 North Italia locations • 6-7 Flower Child locations • 6-7 FRC restaurants Capital Expenditure Approximately $180 Million - $200 Million Dividend Program Q2 2024 dividend of $0.27 per share(2) Share Repurchase Program Offset dilution from employee stock-based compensation and support EPS(2)

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QUALITY GROWTH OPPORTUNITY 21 New Unit Growth Targets(1) Size(2) Sales per Sq Ft(2) Annual Unit Growth 7,000 -10,000 ~$1,100 - $1,200 ~2% -3% 6,000 -7,000 ~$1,200 - $1,300 ~20% 3,000 -4,000 ~$1,100 - $1,200 ~15% -20% 3,500 -15,000 ~$1,100 ~10% -15% Diversified Portfolio Differentiated experiential concepts diversified across industry segment, price point, cuisine, occasion and real estate Value Creation Opportunities Leveraging brand power, operational excellence, scale, supply chain and real estate development expertise 1% - 2% Comparable Sales Growth LONG-TERM OUTLOOK AVERAGE ANNUAL GROWTH TARGETS 7% - 8% Top-line Revenue Growth Attractive Growth Potential Significant runway for future development across portfolio of concepts to drive accretive growth over time (1) Illustrative example of new restaurant openings targeted size, sales per square foot, and annual unit growth; Targets represent steady-state and are typically reached after 3 years of operations (2) Target size and sales per square foot are an average based on productive square feet defined as all interior square footage plus seasonally adjusted exterior patio square footage

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HISTORY OF OUTPERFORMING THE INDUSTRY (4.2)% (6.8)% (0.3)% 4.0% 4.2% 3.3% 2.6% 4.1% 3.8% 0.4% 0.9% 2.5% (27.4)% 3.3% 10.5% 13.9% (4.3)% (8.7)% (6.1)% 1.0% 2.0% (0.9)% (1.6)% 0.8% (0.4)% (2.2)% 0.5% 1.4% (24.0)% (0.9)% 6.5% 10.3% 2008 Knapp-Track Index Comparable Sales - Historical 2-year Stack(1),(2) Industry Outperformance During Economic Downturn Geographical discrepancies in dining restrictions & reopening timelines 22 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020(1) 2021(2) 2022(2) 2023(2) Comparison to pre-pandemic sales (2019) (1) 2020 results reflect the impact of the COVID-19 pandemic (2) Due to impact of COVID-19 pandemic on results 2021, 2022 and 2023 compare against 2019

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DURABLE BUSINESS OVER TIME 23 Note: 2020 results reflect the impact of the pandemic and the issuance of 200,000 shares of Series A Convertible Preferred Stock. Please refer to the appendix for GAAP to Non-GAAP reconciliations and to SEC filings for an explanation regarding an accounting reclassification for prior years $0.84 $1.07 $1.42 $1.64 $1.88 $2.10 $1.97 $2.37 $2.83 $2.60 $2.51 $2.61 $(1.49) $2.13 $1.51 $2.69 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 Capital Allocation Detail $85 $163 $128 $120 $112 $107 $135 $94 $158 $100 $163 $120 $(47) $146 $50 $67 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 $85 $37 $42 $77 $86 $106 $114 $154 $158 $139 $128 $99 $50 $67 $112 $152 $173 $52 $172 $101 $184 $141 $109 $146 $123 $109 $51 $4 $6 $63 $46 $13 $27 $30 $36 $42 $50 $56 $61 $16 $42 $53 64,009 44,545 49,050 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 Capex / Investment Share Repurchases Common Stock Dividend Weighted Average Shares Outstanding Free Cash Flow(1) Adjusted Earnings/(Loss) Per Common Share '20 '20 (1) Free cash flow defined as cash flow from operations (includes adjustment for excess tax benefit related to stock options exercised in 2008-2016 to conform to current year presentation) less capital expenditures and investment in unconsolidated affiliates prior to the acquisition of North Italia and Fox Restaurant Concepts (2) 2019 Capex/Investment does not include the acquisition of North Italia and Fox Restaurant Concepts (2) (2)

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APPENDIX

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NON-GAAP RECONCILIATIONS 25 In addition to the results provided in accordance with the Generally Accepted Accounting Principles (“GAAP”) in this presentation, the Company is providing non-GAAP measurements which present adjusted diluted net income/(loss) per common share excluding the impact of certain items and free cash flow. The non-GAAP measurements are intended to supplement the presentation of the Company’s financial results in accordance with GAAP. The Company believes that the presentation of these items provides additional information to facilitate the comparison of past and present financial results. (1) The excess tax benefit related to stock options exercised is no longer reclassified from cash flows from operating activities to cash flows from financing activities in the consolidated statements of cash flows. The consolidated statements of cash flows for fiscal 2016, 2015, 2014, 2013, 2012, 2011, 2010, 2009 and 2008 have been adjusted to conform to the current year presentation (2) Free cash flow may not add due to rounding The Cheesecake Factory Incorporated Reconciliation of Non-GAAP Financial Measures ($ in millions) Fiscal Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Cash flow from operations (1) $ 170 $ 200 $ 170 $ 197 $ 198 $ 213 $ 249 $ 248 $ 316 $ 239 $ 291 $ 219 $ 3 $ 213 $ 162 218 Capital expenditures / investments 85 37 42 77 86 106 114 154 158 139 128 99 50 67 112 152 Free cash flow(2) $ 85 $ 163 $ 128 $ 120 $ 112 $ 107 $ 135 $ 94 $ 158 $ 100 $ 163 $ 120 $ (47) $ 146 $ 50 $ 67

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NON-GAAP RECONCILIATIONS 26 The Cheesecake Factory Incorporated Reconciliation of Non-GAAP Financial Measures ($ in thousands, except per share data) Fiscal Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Net income/(loss) (GAAP) $ 52,293 $ 42,833 $ 81,713 $ 95,720 $ 98,423 $114,356 $101,276 $116,523 $139,494 $157,392 $ 99,035 $127,293 $ (277,107) $ 49,131 $ 43,123 $ 101,351 - Impairment of assets and lease termination expenses(1) 2,952 26,541 - 1,547 9,536 (561) 696 6,011 114 10,343 17,861 18,247 219,333 18,139 31,387 29,464 - Partial IRS settlement - - - (1,794) - - - - - - - - - - - - - Termination of Interest rate swap - 7,421 7,376 - - - - - - - - - - 2,354 - - - Chairman and CEO employment agreement - 2,550 - - - - - - - - - - - - - - Proceeds from variable life insurance contract - (668) - - (419) - - - - - - - - - - - - Loss on investment in unconsolidated affiliates - - - - - - - - - 479 4,754 13,439 - - - - - Gain on investment in unconsolidated affiliates - - - - - - - - - - - (52,672) - - - - - Acquisition-related costs - - - - - - - - - - - 5,270 2,699 - - - - Acquisition-related contingent consideration, compensation and amortization expenses/(benefit) (2) - - - - - - - - - - - 1,033 (3,872) 19,510 13,368 11,686 - Dividends on Series A preferred stock - - - - - - - - - - - - 13,485 18,661 - - - Net income attributable to Series A preferred stock to apply if-converted method - - - - - - - - - - - - - 4,581 - - - Direct and incremental Series A preferred stock issuance costs - - - - - - - - - - - - 10,257 - - - - Assumed impact of potential conversion of Series A preferred stock into common stock - - - - - - - - - - - - - - - - - COVID-19 related costs (3) - - - - - - - - - - - - 22,963 4,917 - - - Uncertain tax positions - - - - - - - - - - - - - 7,139 - - - Tax effect of adjustments (4) (1,181) (14,605) (2,951) (331) (3,814) 224 (278) (2,404) (46) (4,329) (5,880) 3,818 (62,692) (11,679) (11,637) (10,699) - One-time tax items (5) - - - - - - - - - (38,525) - - - - - - Adjusted net income/(loss) (non-GAAP) $ 54,064 $ 64,072 $ 86,138 $ 95,142 $103,726 $114,019 $101,694 $120,130 $139,562 $125,360 $115,770 $116,428 $ (74,934) $ 112,753 $ 76,241 $ 131,802 Diluted net income/(loss) per share (GAAP) $ 0.82 $ 0.71 $ 1.35 $ 1.64 $ 1.78 $ 2.10 $ 1.96 $ 2.30 $ 2.83 $ 3.27 $ 2.14 $ 2.86 $ (6.32) $ 1.01 $ 0.86 $ 2.07 - Impairment of assets and lease termination expenses 0.05 0.44 - 0.03 0.17 (0.01) 0.01 0.12 0.00 0.21 0.39 0.41 4.36 0.34 0.62 0.61 - Partial IRS settlement - - - (0.03) - - - - - - - - - - - - - Termination of Interest rate swap - 0.12 0.12 - - - - - - - - - - 0.04 - - - Chairman and CEO employment agreement - 0.04 - - - - - - - - - - - - - - - Proceeds from variable life insurance contract - (0.01) - - (0.01) - - - - - - - - - - - - Loss on investment in unconsolidated affiliates - - - - - - - - - 0.01 0.10 0.30 - - - - - Gain on investment in unconsolidated affiliates - - - - - - - - - - - (1.18) - - - - - Acquisition-related costs - - - - - - - - - - - 0.12 0.05 - - - - Acquisition-related contingent consideration, compensation and amortization expenses/(benefit) - - - - - - - - - - - 0.02 (0.08) 0.37 0.27 0.24 - Dividends on Series A preferred stock - - - - - - - - - - - - 0.27 0.35 - - - Net income attributable to Series A preferred stock to apply if-converted method - - - - - - - - - - - - - 0.09 - - - Direct and incremental Series A preferred stock issuance costs - - - - - - - - - - - - 0.20 - - - - Assumed impact of potential conversion of Series A preferred stock into common stock - - - - - - - - - - - - 0.80 (0.08) - - - COVID-19 related costs - - - - - - - - - - - - 0.46 0.09 - - - Uncertain tax positions - - - - - - - - - - - - - 0.13 - - - Tax effect of adjustments (0.03) (0.23) (0.05) - (0.06) 0.01 - (0.05) 0.00 (0.09) (0.12) 0.09 (1.25) (0.22) (0.23) (0.22) - One-time tax items - - - - - - - - - (0.80) - - - - - - Adjusted diluted net income/(loss) per share (non-GAAP) (6) $ 0.84 $ 1.07 $ 1.42 $ 1.64 $ 1.88 $ 2.10 $ 1.97 $ 2.37 $ 2.83 $ 2.60 $ 2.51 $ 2.61 $ (1.49) $ 2.13 $ 1.51 $ 2.69 (1) A detailed breakdown of impairment of assets and lease termination expenses recorded in the 13 and 52 weeks ended January 2, 2024 and the 14 and 53 weeks ended January 3, 2023 can be found in the Selected Segment Information table in the 10-K (2) Represents changes in the fair value of the deferred consideration and contingent consideration and compensation liabilities related to the North Italia and FRC acquisition, as well as amortization of acquired definite-lived licensing agreements (3) Represents incremental costs associated with COVID-19 such as sick and vaccination pay, healthcare and meal benefits for furloughed staff members, additional sanitation and personal protective equipment (4) The tax effect assumes a tax rate based on the federal statutory rate and an estimated blended state tax rate (5) Fiscal 2017 includes a $38.5 million benefit to the income tax provision related to tax reform enacted in December 2017 (6) Adjusted diluted net income/(loss) per share may not add due to rounding

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Cover
May 07, 2024
Cover [Abstract]  
Document Type 8-K
Amendment Flag false
Document Period End Date May 07, 2024
Entity File Number 0-20574
Entity Registrant Name CHEESECAKE FACTORY INCORPORATED
Entity Central Index Key 0000887596
Entity Tax Identification Number 51-0340466
Entity Incorporation, State or Country Code DE
Entity Address, Address Line One 26901 Malibu Hills Road
Entity Address, City or Town Calabasas Hills
Entity Address, State or Province CA
Entity Address, Postal Zip Code 91301
City Area Code 818
Local Phone Number 871-3000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, par value $.01 per share
Trading Symbol CAKE
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
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