false
0000887596
0000887596
2024-10-23
2024-10-23
iso4217:USD
xbrli:shares
iso4217:USD
xbrli:shares
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):
October 23, 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 “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 2.02 | RESULTS OF OPERATIONS AND FINANCIAL CONDITION |
In a press release dated October 29, 2024, a copy
of which is furnished as Exhibit 99.1 to this report, The Cheesecake Factory Incorporated (the “Company”) reported
third quarter fiscal 2024 financial results.
| ITEM 5.02 |
DEPARTURE OF DIRECTORS OR CERTAIN OFFICERS; ELECTION OF DIRECTORS; APPOINTMENT OF CERTAIN
OFFICERS; COMPENSATORY ARRANGEMENTS OF CERTAIN OFFICERS |
(b) On October 24, 2024, Laurence B. Mindel, a member of the Board of Directors of the Company
(the “Board”), notified the Board of his intention to retire from the Board, effective immediately. The Board expressed its
deep appreciation and sincere thanks for Mr. Mindel’s service on the Board and for his invaluable contributions to the Company.
| ITEM 7.01 | REGULATION FD DISCLOSURE |
On October 29, 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.
On October 23, 2024, the Board declared a quarterly cash dividend of
$0.27 per share which will be paid on November 26, 2024 to the stockholders of record of each share of the Company’s common stock
at the close of business on November 13, 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 9.01 | FINANCIAL STATEMENTS AND EXHIBITS |
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: October 29,
2024 |
THE CHEESECAKE FACTORY INCORPORATED |
| |
|
| |
By: |
/s/ Matthew E. Clark |
| |
|
Matthew E. Clark |
| |
|
Executive Vice President and Chief Financial Officer |
Exhibit 99.1
PRESS
RELEASE
| FOR IMMEDIATE
RELEASE |
Contact: Etienne
Marcus |
| |
(818) 871-3000 |
| |
investorrelations@thecheesecakefactory.com |
THE CHEESECAKE
FACTORY REPORTS RESULTS FOR
THIRD QUARTER
OF FISCAL 2024
CALABASAS
HILLS, Calif. – October 29, 2024 – The Cheesecake Factory Incorporated (NASDAQ: CAKE) today reported financial
results for the third quarter of fiscal 2024, which ended on October 1, 2024.
Total revenues
were $865.5 million in the third quarter of fiscal 2024 compared to $830.2 million in the third quarter of fiscal 2023. Net income
and diluted net income per share were $30.0 million and $0.61, respectively, in the third quarter of fiscal 2024.
The Company recorded
pre-tax net income of $2.5 million related to impairment of assets and lease termination income and Fox Restaurant Concepts (“FRC”)
acquisition-related expenses. Excluding the after-tax impact of these items, adjusted net income and adjusted net income per share for
the third quarter of fiscal 2024 were $28.2 million and $0.58, 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 increased 1.6% year-over-year in the third quarter of fiscal 2024.
“The third
quarter was our fourth consecutive quarter of year-over-year top- and bottom-line growth, reflecting our strong operational execution,
the benefits of our scale, and the delicious, memorable experiences we offer across our restaurant concepts,” said David Overton,
Chairman and Chief Executive Officer. “We are capturing market share as evidenced by the continued strong outperformance in comparable
sales and traffic at The Cheesecake Factory restaurants versus the broader casual dining industry. Execution within our restaurants was
exceptional with our operators delivering significant improvements in labor productivity, hourly staff and manager retention, and guest
satisfaction scores.”
“We opened
four new restaurants during the third quarter and, subsequent to quarter-end, opened three additional restaurants across various concepts
for a total of 17 new openings year-to-date. Our ability to execute against our pipeline and successfully expand our restaurant footprint
reinforces our confidence in our ability to achieve our near-term and longer-term development objectives. Looking ahead we remain focused
on operational excellence, growing profitably and creating long-term, sustainable value into 2025 and beyond.”
26901
Malibu Hills Road, Calabasas Hills, CA 91301 • Telephone (818) 871-3000
Development
During the third
quarter of fiscal 2024, the Company opened four new restaurants, including one Flower Child location and three FRC restaurants. Subsequent
to quarter-end, the Company opened three new restaurants, including one North Italia, one Flower Child and one Blanco location.
The Company continues
to expect to open as many as 22 new restaurants in fiscal 2024, including as many as three The Cheesecake Factory restaurants, six North
Italia restaurants, six to seven Flower Child locations, and eight FRC restaurants.
Liquidity and
Capital Allocation
As of October 1,
2024, the Company had total available liquidity of $288.7 million, including a cash balance of $52.2 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 29,450 shares of its stock at a cost of $1.1 million in the third 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 November 26, 2024, to shareholders of record
at the close of business on November 13, 2024.
Conference Call
and Webcast
The Company will
hold a conference call to review its results for the third 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 November 28, 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
344 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 the Company’s operations, growth, digital strategies and other objectives. 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 interest rate fluctuations, 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 | | |
39 Weeks Ended | | |
39 Weeks Ended | |
| Consolidated Statements of Income | |
October 1, 2024 | | |
October 3, 2023 | | |
October 1, 2024 | | |
October 3, 2023 | |
| | |
Amount | | |
Percent of
Revenues | | |
Amount | | |
Percent of
Revenues | | |
Amount | | |
Percent of
Revenues | | |
Amount | | |
Percent of
Revenues | |
| Revenues | |
$ | 865,471 | | |
| 100.0 | % | |
$ | 830,210 | | |
| 100.0 | % | |
$ | 2,660,736 | | |
| 100.0 | % | |
$ | 2,562,494 | | |
| 100.0 | % |
| Costs and expenses: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Food and beverage costs | |
| 195,306 | | |
| 22.6 | % | |
| 194,733 | | |
| 23.5 | % | |
| 600,253 | | |
| 22.6 | % | |
| 602,051 | | |
| 23.5 | % |
| Labor expenses | |
| 310,939 | | |
| 35.9 | % | |
| 301,663 | | |
| 36.3 | % | |
| 949,151 | | |
| 35.7 | % | |
| 919,340 | | |
| 35.9 | % |
| Other operating costs and expenses | |
| 239,470 | | |
| 27.7 | % | |
| 229,534 | | |
| 27.6 | % | |
| 712,108 | | |
| 26.9 | % | |
| 687,459 | | |
| 26.7 | % |
| General and administrative expenses | |
| 56,204 | | |
| 6.5 | % | |
| 54,209 | | |
| 6.5 | % | |
| 170,954 | | |
| 6.4 | % | |
| 162,766 | | |
| 6.4 | % |
| Depreciation and amortization expenses | |
| 25,299 | | |
| 2.9 | % | |
| 22,837 | | |
| 2.8 | % | |
| 75,015 | | |
| 2.8 | % | |
| 69,124 | | |
| 2.7 | % |
| Impairment of assets and lease terminations (income)/expense | |
| (3,472 | ) | |
| (0.4 | )% | |
| 48 | | |
| 0.0 | % | |
| (1,577 | ) | |
| (0.1 | )% | |
| 1,637 | | |
| 0.1 | % |
| Acquisition-related contingent consideration, compensation and amortization expenses | |
| 1,020 | | |
| 0.1 | % | |
| 1,414 | | |
| 0.2 | % | |
| 3,287 | | |
| 0.1 | % | |
| 3,890 | | |
| 0.2 | % |
| Preopening costs | |
| 7,005 | | |
| 0.8 | % | |
| 6,742 | | |
| 0.8 | % | |
| 19,860 | | |
| 0.7 | % | |
| 15,800 | | |
| 0.6 | % |
| Total costs and expenses | |
| 831,771 | | |
| 96.1 | % | |
| 811,180 | | |
| 97.7 | % | |
| 2,529,051 | | |
| 95.1 | % | |
| 2,462,067 | | |
| 96.1 | % |
| Income from operations | |
| 33,700 | | |
| 3.9 | % | |
| 19,030 | | |
| 2.3 | % | |
| 131,685 | | |
| 4.9 | % | |
| 100,427 | | |
| 3.9 | % |
| Interest and other (expense)/income, net | |
| (1,865 | ) | |
| (0.2 | )% | |
| (2,027 | ) | |
| (0.3 | )% | |
| (5,974 | ) | |
| (0.2 | )% | |
| (6,069 | ) | |
| (0.2 | )% |
| Income before income taxes | |
| 31,835 | | |
| 3.7 | % | |
| 17,003 | | |
| 2.0 | % | |
| 125,711 | | |
| 4.7 | % | |
| 94,358 | | |
| 3.7 | % |
| Income tax provision/(benefit) | |
| 1,841 | | |
| 0.2 | % | |
| (942 | ) | |
| (0.2 | )% | |
| 10,082 | | |
| 0.4 | % | |
| 5,688 | | |
| 0.2 | % |
| Net income | |
$ | 29,994 | | |
| 3.5 | % | |
$ | 17,945 | | |
| 2.2 | % | |
$ | 115,629 | | |
| 4.3 | % | |
$ | 88,670 | | |
| 3.5 | % |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Basic net income per share | |
$ | 0.63 | | |
| | | |
$ | 0.37 | | |
| | | |
$ | 2.42 | | |
| | | |
$ | 1.83 | | |
| | |
| Basic weighted average shares outstanding | |
| 47,750 | | |
| | | |
| 48,281 | | |
| | | |
| 47,734 | | |
| | | |
| 48,489 | | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Diluted net income per share | |
$ | 0.61 | | |
| | | |
$ | 0.37 | | |
| | | |
$ | 2.37 | | |
| | | |
$ | 1.80 | | |
| | |
| Diluted weighted average shares outstanding | |
| 48,946 | | |
| | | |
| 48,985 | | |
| | | |
| 48,751 | | |
| | | |
| 49,197 | | |
| | |
26901
Malibu Hills Road, Calabasas Hills, CA 91301 • Telephone (818) 871-3000
| | |
13 Weeks Ended | | |
13 Weeks Ended | | |
39 Weeks Ended | | |
39 Weeks Ended | |
| Selected Segment Information | |
October 1, 2024 | | |
October 3, 2023 | | |
October 1, 2024 | | |
October 3, 2023 | |
| Revenues: | |
| | | |
| | | |
| | | |
| | |
| The Cheesecake Factory restaurants | |
$ | 647,754 | | |
$ | 628,140 | | |
$ | 1,992,245 | | |
$ | 1,936,621 | |
| North Italia | |
| 71,878 | | |
| 62,417 | | |
| 218,266 | | |
| 191,654 | |
| Other FRC | |
| 66,984 | | |
| 58,642 | | |
| 214,850 | | |
| 193,010 | |
| Other | |
| 78,855 | | |
| 81,011 | | |
| 235,375 | | |
| 241,209 | |
| Total | |
$ | 865,471 | | |
$ | 830,210 | | |
$ | 2,660,736 | | |
$ | 2,562,494 | |
| | |
| | | |
| | | |
| | | |
| | |
| Income/(loss) from operations: | |
| | | |
| | | |
| | | |
| | |
| The Cheesecake Factory restaurants | |
$ | 87,822 | | |
$ | 67,637 | | |
$ | 274,928 | | |
$ | 231,700 | |
| North Italia | |
| 4,408 | | |
| 4,081 | | |
| 13,085 | | |
| 15,314 | |
| Other FRC | |
| (1,372 | ) | |
| 1,036 | | |
| 8,510 | | |
| 15,826 | |
| Other | |
| (57,158 | ) | |
| (53,724 | ) | |
| (164,838 | ) | |
| (162,413 | ) |
| Total | |
$ | 33,700 | | |
$ | 19,030 | | |
$ | 131,685 | | |
$ | 100,427 | |
| | |
| | | |
| | | |
| | | |
| | |
| Depreciation and amortization expenses: | |
| | | |
| | | |
| | | |
| | |
| The Cheesecake Factory restaurants | |
$ | 16,142 | | |
$ | 15,702 | | |
$ | 49,242 | | |
$ | 47,955 | |
| North Italia | |
| 2,360 | | |
| 1,578 | | |
| 6,653 | | |
| 4,713 | |
| Other FRC | |
| 3,031 | | |
| 1,891 | | |
| 8,246 | | |
| 5,627 | |
| Other | |
| 3,766 | | |
| 3,666 | | |
| 10,874 | | |
| 10,829 | |
| Total | |
$ | 25,299 | | |
$ | 22,837 | | |
$ | 75,015 | | |
$ | 69,124 | |
| | |
| | | |
| | | |
| | | |
| | |
| Impairment of assets and lease termination (income)/expenses: | |
| | | |
| | | |
| | | |
| | |
| The Cheesecake Factory restaurants | |
$ | (3,858 | ) | |
$ | 29 | | |
$ | (1,732 | ) | |
| 160 | |
| North Italia | |
| - | | |
| - | | |
| - | | |
| - | |
| Other FRC | |
| - | | |
| - | | |
| - | | |
| 55 | |
| Other | |
| 386 | | |
| 19 | | |
| 155 | | |
| 1,422 | |
| Total | |
$ | (3,472 | ) | |
$ | 48 | | |
$ | (1,577 | ) | |
$ | 1,637 | |
| | |
| | | |
| | | |
| | | |
| | |
| Preopening costs: | |
| | | |
| | | |
| | | |
| | |
| The Cheesecake Factory restaurants | |
$ | 1,483 | | |
$ | 3,861 | | |
$ | 5,615 | | |
$ | 8,401 | |
| North Italia | |
| 1,765 | | |
| 1,068 | | |
| 5,179 | | |
| 2,132 | |
| Other FRC | |
| 2,900 | | |
| 1,764 | | |
| 6,810 | | |
| 4,483 | |
| Other | |
| 857 | | |
| 49 | | |
| 2,256 | | |
| 784 | |
| Total | |
$ | 7,005 | | |
$ | 6,742 | | |
$ | 19,860 | | |
$ | 15,800 | |
| | |
13 Weeks Ended | | |
13 Weeks Ended | | |
39 Weeks Ended | | |
39 Weeks Ended | |
| The Cheesecake Factory restaurants operating information: | |
October 1, 2024 | | |
October 3, 2023 | | |
October 1, 2024 | | |
October 3, 2023 | |
| Comparable restaurant sales vs. prior year | |
| 1.6 | % | |
| 2.4 | % | |
| 0.8 | % | |
| 3.2 | % |
| Restaurants opened during period | |
| - | | |
| 2 | | |
| 1 | | |
| 3 | |
| Restaurants open at period-end | |
| 215 | | |
| 213 | | |
| 215 | | |
| 213 | |
| Restaurant operating weeks | |
| 2,804 | | |
| 2,756 | | |
| 8,419 | | |
| 8,227 | |
| | |
| | | |
| | | |
| | | |
| | |
| North Italia operating information: | |
| | | |
| | | |
| | | |
| | |
| Comparable restaurant sales vs. prior year | |
| 2 | % | |
| 8 | % | |
| 2 | % | |
| 8 | % |
| Restaurants opened during period | |
| - | | |
| - | | |
| 3 | | |
| - | |
| Restaurants open at period-end | |
| 39 | | |
| 33 | | |
| 39 | | |
| 33 | |
| Restaurant operating weeks | |
| 507 | | |
| 429 | | |
| 1,486 | | |
| 1,287 | |
| | |
| | | |
| | | |
| | | |
| | |
| Other Fox Restaurant Concepts (FRC) operating information:(1) | |
| | | |
| | | |
| | | |
| | |
| Restaurants opened during period | |
| 3 | | |
| - | | |
| 6 | | |
| 3 | |
| Restaurants open at period-end | |
| 46 | | |
| 37 | | |
| 46 | | |
| 37 | |
| Restaurant operating weeks | |
| 575 | | |
| 481 | | |
| 1,654 | | |
| 1,394 | |
| | |
| | | |
| | | |
| | | |
| | |
| Other operating information:(2) | |
| | | |
| | | |
| | | |
| | |
| Restaurants opened during period | |
| 1 | | |
| - | | |
| 4 | | |
| 1 | |
| Restaurants open at period-end | |
| 41 | | |
| 40 | | |
| 41 | | |
| 40 | |
| Restaurant operating weeks | |
| 526 | | |
| 520 | | |
| 1,475 | | |
| 1,555 | |
| | |
| | | |
| | | |
| | | |
| | |
| Number of company-owned restaurants: | |
| | | |
| | | |
| | | |
| | |
| The Cheesecake Factory | |
| 215 | | |
| | | |
| | | |
| | |
| North Italia | |
| 39 | | |
| | | |
| | | |
| | |
| Other FRC | |
| 46 | | |
| | | |
| | | |
| | |
| Other | |
| 41 | | |
| | | |
| | | |
| | |
| Total | |
| 341 | | |
| | | |
| | | |
| | |
| | |
| | | |
| | | |
| | | |
| | |
| Number of international-licensed restaurants: | |
| | | |
| | | |
| | | |
| | |
| The Cheesecake Factory | |
| 34 | | |
| | | |
| | | |
| | |
(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 | |
October 1, 2024 | | |
January 2, 2024 | |
| Cash and cash equivalents | |
$ | 52,215 | | |
$ | 56,290 | |
| Long-term debt, net of issuance costs (1) | |
| 471,558 | | |
| 470,047 | |
(1) Includes $341.6 million net balance of 0.375% convertible senior notes due 2026 (principal amount of $345 million less $3.4 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 | | |
39 Weeks Ended | | |
39 Weeks Ended | |
| | |
October 1, 2024 | | |
October 3, 2023 | | |
October 1, 2024 | | |
October 3, 2023 | |
| Net income (GAAP) | |
$ | 29,994 | | |
$ | 17,945 | | |
$ | 115,629 | | |
$ | 88,670 | |
| Impairment
of assets and lease termination (income)/expenses(1) | |
| (3,472 | ) | |
| 48 | | |
| (1,577 | ) | |
| 1,637 | |
Acquisition-related
contingent consideration,
compensation and amortization expenses(2) | |
| 1,020 | | |
| 1,414 | | |
| 3,287 | | |
| 3,890 | |
| Tax
effect of adjustments(3) | |
| 638 | | |
| (380 | ) | |
| (445 | ) | |
| (1,437 | ) |
| Adjusted net income (non-GAAP) | |
$ | 28,180 | | |
$ | 19,027 | | |
$ | 116,894 | | |
$ | 92,760 | |
| | |
| | | |
| | | |
| | | |
| | |
| Diluted net income per share (GAAP) | |
$ | 0.61 | | |
$ | 0.37 | | |
$ | 2.37 | | |
$ | 1.80 | |
| Impairment of assets and lease termination (income)/expenses | |
| (0.07 | ) | |
| 0.00 | | |
| (0.03 | ) | |
| 0.03 | |
Acquisition-related contingent consideration,
compensation and amortization expenses | |
| 0.02 | | |
| 0.03 | | |
| 0.07 | | |
| 0.08 | |
| Tax effect of adjustments | |
| 0.01 | | |
| (0.01 | ) | |
| (0.01 | ) | |
| (0.03 | ) |
| Adjusted net income per share (non-GAAP)(4) | |
$ | 0.58 | | |
$ | 0.39 | | |
$ | 2.40 | | |
$ | 1.89 | |
(1) A detailed breakdown of impairment of assets and lease termination (income)/expenses recorded in the thirteen and thirty-nine weeks ended October 1, 2024 and October 3, 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.
Exhibit 99.2
| INVESTOR
PRESENTATION
October 29, 2024 |
| 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, potential price increases, 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; 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 changes in 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. |
| COMPANY
OVERVIEW |
| INVESTMENT HIGHLIGHTS
4
• 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
• Differentiation and strong foothold in the off-premise channel |
| CAKE AT A GLANCE
5
(1) Market data as of October 1, 2024.
(2) Represents fiscal year 2023 revenue for the twelve months ended January 2, 2024.
We own and operate 344 restaurants across the
US and Canada including:
• 215 The Cheesecake Factory locations
• 40 North Italia locations
• 35 Flower Child locations
• 47 Fox Restaurant Concepts locations
Our nearly 48,000 staff members
recently helped us become one of the
Fortune “100 Best Companies to Work
For®” for the 11th consecutive year
34
International
CCF Locations
China
Thailand
Mexico
Bahrain
Kuwait
Saudi Arabia
Qatar | UAE
FOUNDED
1972
IPO
1992
TICKER
CAKE
REVENUE(2)
$3.4B
HEADQUARTERS
CALABASAS HILLS, CA
MARKET CAP(1)
$2.1B
PORTFOLIO OF EXPERIENTIAL DINING CONCEPTS |
| 6 |
| GLOBAL FOOTPRINT
7
Company-Owned: 215
(Including Toronto, Canada)
Latin America
Mexico City (5)
Monterrey (1)
Guadalajara (1)
Querétaro (1)
Asia
Shanghai (3)
Beijing (1)
Chengdu (1)
Hangzhou (1)
Hong Kong (1)
Macau (1)
Thailand (1)
Middle East
UAE (6)
Saudi Arabia (4)
Kuwait (3)
Qatar (3)
Bahrain (1)
International – Licensed: 34
Opportunity for 300
Domestic Locations
Long runway for growth as
we continue to open in new
and existing markets
Continued International
Expansion
In existing and new markets with
current licensees and evaluating
new markets
High-quality, High-profile
Locations Worldwide
Strong presence in premier
markets with attractive consumer
demographics |
| 8
High-Energy Atmosphere
Contemporary Décor
Distinct, High-Quality
Cheesecakes and Desserts
Best-in-Class Execution
Exceptional Service
Menu Breadth and Innovation
Made Fresh From Scratch
MENU OPERATIONS AMBIANCE BAKERY
A HIGHLY DIFFERENTIATED CONCEPT |
| 9
INTEGRATED BAKERY – THE “CHEESECAKE” MAGIC
Enables creativity, quality control and
supply chain efficiencies
60 Varieties of
cheesecakes & 2 desserts
Bakery
production
facilities
17%
FY 2023(1)
1
FY 2019
6%
(1)
(1) Percent of total sales.
Impressive Level of Dessert Sales |
| BEST-IN-CLASS STAFFING AND OPERATIONS
10
Well-positioned to attract and retain high-quality, experienced
staff as an employer of choice
• Top-tier recruiting and training programs
• Fortune’s ‘100 Best Companies to Work For’ List for 11 consecutive years
• Competitive compensation, benefits and healthcare options
• High sales volume restaurants provide predictability and stability for staff
Average Tenure by Position
34 years
25 years
20 years
19 years
12 years
11 years
Executive VP of Operations
Regional Vice Presidents
Area Directors of Operations
Area Kitchen Operations Managers
General Managers
Executive Kitchen Managers
EXCEPTIONAL SERVICE AND OPERATIONAL EXECUTION SUPPORTED BY INDUSTRY-LEADING RETENTION
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. |
| DIFFERENTIATION IN OFF-PREMISE
11
• Extensive menu with over 225 items made from scratch daily
• Large portions designed for sharing
• Lower incremental delivery pricing versus peers
• Fully integrated systems for better execution
• Separate bakery counter and register for pick-up of orders
Exceptional Value
Operational Execution
• Omni channel ordering – Online | Delivery | Phone | In-person
• Curbside delivery, geo-location and real-time tracking
• Redesigned to-go packaging to improve food quality
Guest Experience and Convenience
9% 11% 16%
43% 32% 25% 22% 22% 21% 21%
OFF-PREMISE SALES % OF TOTAL REVENUE
OFF-PREMISE AWS FOR FY 2023(2)
$51.9
$25.2
$22.6
$20.5
$18.1
$17.7
$15.2
$15.2
$14.7
$12.6
Olive Garden
Carrabba's
BJ's
Texas Roadhouse
Chili's
Outback
Cracker Barrel
Red Robin
LongHorn
(1) $2.5 million in off-premise sales per restaurant is annualized based on 3Q24.
(2) Company reports and Gordon Haskett Research Advisors.
($ in thousands)
$2.5 million per restaurant (1)
LEVERAGING OUR DIFFERENTIATED POSITIONING TO
DRIVE THE HIGHEST OFF-PREMISE AVERAGE WEEKLY SALES |
| 12
ICONIC
BRAND
AND
CULT
STATUS |
| Followers(1) (in thousands)
Followers / $M Sales(2)
Followers / $M Sales Instagram Followers
0 200 400 600 800 1,000 1,200
CAKE
Maggiano's
Outback
Bonefish
Olive Garden
YardHouse
Chili's
Cracker Barrel
BJ's Restaurants
LongHorn
Carrabba's
Texas Roadhouse
- 75 150 225 300 375 450
CAKE
Maggiano's
Outback
Bonefish
Olive Garden
YardHouse
Chili's
Cracker Barrel
BJ's Restaurants
LongHorn
Carrabba's
Texas Roadhouse
13
STRONG
CONSUMER
ENGAGEMENT
CAKE has more Instagram followers
and significantly outpaces peers in
followers relative to sales
Leveraging the STRENGTH OF
OUR BRAND across social media
channels to ENGAGE WITH OUR
CONSUMERS and further
ENHANCE BRAND AWARENESS
MILLIONS OF FOLLOWERS
(1) Instagram Follower count as of May 3, 2024.
(2) Sales represent fiscal year 2023 revenue based on latest SEC 10-K filings and company presentations. |
| BROAD APPEAL AND BRAND AFFINITY
14
Diverse
Appeal
Across a broad
demographic range
Extensive
Menu
Something for every taste,
every price point
Special
Occasions
Seen as a destination for
experiential dining
Signature
Desserts
High-quality cheesecakes
and desserts
Consumers (millennials in particular)
regularly rank the Cheesecake Factory
as one of the best chain restaurants,
as well as having the best
ambiance and the best quality food.
A chain restaurant triple threat if there
was ever one.
-Vox, December 24, 2022
Sources:
(1) The Cheesecake Factory Ranks No. 1 in Casual Dining Online Reputation Study, SOCi Marketing Study, FSR Magazine, December 12, 2023.
(2) Most-Beloved Restaurant Brands in America – Savanta’s Marketing Intelligence Platform BrandVue Eating Out, FSR Magazine, October 11, 2023. |
| CHEESECAKE REWARDS®
15
PROGRAM
OBJECTIVE
A SURPRISE and DELIGHT program
To leverage data analytics to engage more effectively with
our guests and drive incremental sales while maintaining
our restaurant level margins
Published
Offers
To support
member
acquisition and
on-going
engagement
Offered to all
rewards members
Unpublished
Offers
To surprise and
delight our guests
and drive
incremental
member visits
Tailored rewards
offered to all members
Marketable
Offers
To leverage key
marketable
moments to drive
increased
engagement
Offered to all
rewards members
Opportunity to drive incremental traffic
® |
| $12.2 $9.8 $9.7
$7.6 $6.1 $5.6 $4.9 $4.1 $3.6 $3.6 $3.3
Maggiano's Yard
House
Texas
Roadhouse
BJ's Olive
Garden
LongHorn Outback Carrabba's Chili's Bonefish
With a Moderate Average Check (1)
Driving the Highest Unit Volumes in the Industry(1)
($ in millions)
$36 $35 $34 $31 $28 $28 $25 $23 $22 $21 $20
Maggiano's Yard
House
Bonefish Outback LongHorn Carraba's Olive
Garden
Texas
Roadhouse
BJ's Chili's
16 (1) Latest SEC 10-K filings and company presentations.
(2) Average check for The Cheesecake Factory defined as on-premise average check for FY 2023.
(2) |
| 17 |
| 18
• Filling White Space for an On-Trend, Contemporary Italian Offering
• Menu features classic Italian favorites with a fresh twist from hand-tossed pizzas and
homemade pastas to crave-worthy appetizers, salads and seasonal entrees
• Unique menu items tailored to local markets
• All dishes handmade from scratch daily
• Serving lunch, dinner, weekend brunch & weekday happy hour
• Robust selection of wine, beer and craft cocktails driving ~25% alcohol mix
• Average check of low to mid $30s for lunch and low to mid $40s for dinner |
| 19
• Potential for 200 domestic locations over time
• Currently have 40 locations in 13 states &
Washington D.C.
• Italian is one of the most popular ethnic cuisines
in the United States
• Targeting ~20% average annual unit growth
• Attractive return profile and sales growth
Comp Sales
3Q24 (vs. 3Q23): 2%
FY ‘23 (vs. FY ‘22): 8% |
| 20 |
| • A differentiated concept in the growing fast casual dining segment
• 35 locations in 12 states
• Targeting ~15% - 20% average annual unit growth
• A healthy, balanced dining experience with organic, gluten-free and vegan dishes
• All dishes handmade from scratch daily
• Menu features customizable bowls, wraps, salads, veggies and healthy proteins
• Attractive consumer demographic
• Significant off-premise volumes - trending over 50% of sales(1)
• Separate take-out area for third-party delivery and take-out business
On a simple, soul-satisfying mission to spread positively delicious vibes and healthy food.
21 (1) As of Q3 2024 ending October 1, 2024. |
| 22 |
| FOX RESTAURANT CONCEPTS (FRC)
23
FRC HIGHLIGHTS
• Locations: 47
• Geographies 10 states
• FY 2023 Revenue(1) $264M
(1) Fiscal year 2023 revenue represents revenue for the twelve months ended January 2, 2024 and excludes revenue for Flower Child.
FRC serves as an incubation engine, innovating new food, dining and hospitality
experiences to create fresh, exciting concepts for the future
FRC’s experiential concepts are designed to deliver unique guest experiences across different
industry segments, occasions, square footage and geographies
Provides Diversification | Accretive Unit Growth Potential | Value Creation Opportunities
“Great hospitality, every time.”
- Sam Fox |
| Culinary forward. First class hospitality. Concepts like no other.
DIVERSIFYING OUR PORTFOLIO ACROSS
EXPERIENTIAL FOR GROWTH
24
National
Expansion
Boutique
Brands
Incubation
Stage
Testing
Growth
Global
Footprint |
| Accelerating Unit Growth
AS MANY AS 22 NEW UNITS IN 2024 17 NROs YTD
ACCELERATING UNIT GROWTH
As of October 29, 2024
13 New Restaurants Opened in 2022 16 New Restaurants Opened in 2023
The Cheesecake Factory | Orem, UT Doughbird | Dallas, TX The Henry | Nashville, TN
Culinary
Dropout
Atlanta, GA
Birmingham, AL
Dallas, TX
Flower
Child
North
Italia
Houston, TX
Dallas, TX
Charlotte, NC
Peoria, AZ
Salt Lake City, UT
Charlotte, NC
Frontenac, MO
Plano, TX
Phoenix, AZ
Coronado, CA
Peoria, AZ Blanco | |
| FINANCIAL
PERFORMANCE |
| 27
DRIVING STRONG SALES GROWTH
FY 2023
COMP SALES
AVERAGE WEEKLY SALES (2)
FY 2023
AVERAGE WEEKLY SALES
Q3 2024
COMP SALES
AVERAGE WEEKLY SALES (2)
Q3 2024
vs 2022
3.0%
8%
vs 2022
3%
vs 3Q23
1.6%
2%
vs 3Q23
(4)%
~$231,000
Equates to $12.0M
Annualized AUV(1)
~$141,800
Equates to $7.4M
Annualized AUV(1)
~$116,500
Equates to $6.1M
Annualized AUV(1)
(1) 3Q24 Average Unit Volumes (AUV) annualized based on average weekly sales.
(2) FRC excludes Flower Child. |
| Q3 2024 HIGHLIGHTS(1)
28
Total Revenue
$865M
Up 4% from PY
Adj. Net Inc. Margin
3.3%
Up 100 bps from PY
Capital Allocation
(1) A reconciliation of Non-GAAP measures can be found in the appendix.
(2) The Cheesecake Factory comparable sales outperformed the casual dining industry by 310 bps as measured by the Black Box casual dining index.
(3) Represents total company owned and operated restaurants across the US and Canada.
Adjusted EPS
$0.58
Up 49% from PY
The Cheesecake Factory
Comp Sales
1.6%
310 bps above
Industry
(2)
$54M
CapEx
$1M
Repurchases
$13M
Dividends
Unit Growth
4 NROs
Restaurant Count(3)
341
Up 6% from 323
in PY |
| 2024 UNDERLYING KEY ASSUMPTIONS(1)
29
(1) Assumes no material operating or consumer disruptions as well as assumptions with respect to future decisions, which are subject to change. Actual results will vary and those
variations may be material.
(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 $3.57 Billion
CCF AUVs Approximately $12.4 Million
Net Income Margin Targeting approximately 4.5% at the stated sales level
New Unit Growth
As many as 22 New Restaurant Openings
• 3 The Cheesecake Factory locations
• 6 North Italia locations
• 6-7 Flower Child locations
• 8 FRC restaurants
Capital Expenditure Approximately $180 Million - $200 Million
Dividend Program Q4 2024 dividend of $0.27 per share(2)
Share Repurchase Program Offset dilution from employee stock-based compensation
and support EPS(2) |
| QUALITY GROWTH OPPORTUNITY
30
New Unit Growth Targets(1)(2)
Size(3) Sales per Sq Ft(3) 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(2)
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 typically are reached after 3 years of operations.
(2) Targets are forward-looking and are based upon assumptions that there are no material operating or consumer disruptions as well as assumptions with respect to future decisions, which are subject to change. Actual results
will vary and those variations may be material.
(3) 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. |
| 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
31
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. |
| DURABLE BUSINESS OVER TIME(1)
32
$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 $53
64,009
44,545 49,050
'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23
Capex / Investment Share Repurchases Common Stock Dividend Weighted Average Shares Outstanding
Adjusted Earnings/(Loss) Per Common Share Free Cash Flow
'20 '20
(1) A reconciliation of Non-GAAP measures can be found in the appendix. 2020 results reflect the impact of the pandemic and the issuance of 200,000 shares of Series A Convertible Preferred
Stock. An explanation regarding accounting reclassifications for prior years can be found in the 10-K and 10-Q.
(2) 2019 Capex / Investment does not include the acquisition of North Italia and Fox Restaurant Concepts.
(2)
(2) |
| APPENDIX |
| NON-GAAP RECONCILIATIONS
34
In addition to the results provided in accordance with the Generally Accepted Accounting Principles (“GAAP”)
in this presentation, the Company is providing non-GAAP measurements which present adjusted diluted net
income/(loss) per common share excluding the impact of certain items, adjusted net income margin and free
cash flow.
The non-GAAP measurements are intended to supplement the presentation of the Company’s financial results
in accordance with GAAP. The Company believes that the presentation of these items provides additional
information to facilitate the comparison of past and present financial results.
($ 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
(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 subsequent years presentation.
(2) Free cash flow may not add due to rounding. |
| NON-GAAP RECONCILIATIONS
35
($ in thousands, except per share data) Fiscal Year
Fiscal
Quarter
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 3Q23 3Q24
Net income/(loss) $ 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 $ 17,945 $ 29,994
Impairment of assets and lease termination expenses/(income)(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 48 (3,472)
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 1,414 1,020
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) (380) 638
One-time tax items (5) - - - - - - - - - (38,525) - - - - - - - -
Adjusted net income/(loss) $ 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 $ 19,027 $ 28,180
Revenues $2,482,692 $830,210 $865,471
Adjusted net income margin 4.7% 2.3% 3.3%
Diluted net income/(loss) per share $ 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 $ 0.37 $ 0.61
Impairment of assets and lease termination expenses/(income)(1) 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 - (0.07)
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) (2) -
- - - - - - - - - - 0.02 (0.08) 0.37 0.27 0.24 0.03 0.02
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 (3) - - - - - - - - - - - - 0.46 0.09 - - - -
Uncertain tax positions - - - - - - - - - - - - - 0.13 - - - -
Tax effect of adjustments (4) (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) (0.01) 0.01
One-time tax items (5) - - - - - - - - - (0.80) - - - - - - - -
Adjusted diluted net income/(loss) per share(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 $ 0.39 $ 0.58
(1) A detailed breakdown of impairment of assets and lease termination expenses recorded can be found in the Selected Segment Information table in the 10-K and 10-Q.
(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. |
| X |
- DefinitionBoolean flag that is true when the XBRL content amends previously-filed or accepted submission.
| Name: |
dei_AmendmentFlag |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionFor the EDGAR submission types of Form 8-K: the date of the report, the date of the earliest event reported; for the EDGAR submission types of Form N-1A: the filing date; for all other submission types: the end of the reporting or transition period. The format of the date is YYYY-MM-DD.
| Name: |
dei_DocumentPeriodEndDate |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:dateItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionThe type of document being provided (such as 10-K, 10-Q, 485BPOS, etc). The document type is limited to the same value as the supporting SEC submission type, or the word 'Other'.
| Name: |
dei_DocumentType |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:submissionTypeItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionAddress Line 1 such as Attn, Building Name, Street Name
| Name: |
dei_EntityAddressAddressLine1 |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- Definition
+ References
+ Details
| Name: |
dei_EntityAddressCityOrTown |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionCode for the postal or zip code
| Name: |
dei_EntityAddressPostalZipCode |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionName of the state or province.
| Name: |
dei_EntityAddressStateOrProvince |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:stateOrProvinceItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionA unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
| Name: |
dei_EntityCentralIndexKey |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:centralIndexKeyItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionIndicate if registrant meets the emerging growth company criteria. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
| Name: |
dei_EntityEmergingGrowthCompany |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionCommission file number. The field allows up to 17 characters. The prefix may contain 1-3 digits, the sequence number may contain 1-8 digits, the optional suffix may contain 1-4 characters, and the fields are separated with a hyphen.
| Name: |
dei_EntityFileNumber |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:fileNumberItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionTwo-character EDGAR code representing the state or country of incorporation.
| Name: |
dei_EntityIncorporationStateCountryCode |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:edgarStateCountryItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionThe exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
| Name: |
dei_EntityRegistrantName |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionThe Tax Identification Number (TIN), also known as an Employer Identification Number (EIN), is a unique 9-digit value assigned by the IRS. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
| Name: |
dei_EntityTaxIdentificationNumber |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:employerIdItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionLocal phone number for entity.
| Name: |
dei_LocalPhoneNumber |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 13e
-Subsection 4c
| Name: |
dei_PreCommencementIssuerTenderOffer |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 14d
-Subsection 2b
| Name: |
dei_PreCommencementTenderOffer |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionTitle of a 12(b) registered security. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b
| Name: |
dei_Security12bTitle |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:securityTitleItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionName of the Exchange on which a security is registered. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection d1-1
| Name: |
dei_SecurityExchangeName |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:edgarExchangeCodeItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as soliciting material pursuant to Rule 14a-12 under the Exchange Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Section 14a
-Number 240
-Subsection 12
| Name: |
dei_SolicitingMaterial |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionTrading symbol of an instrument as listed on an exchange.
| Name: |
dei_TradingSymbol |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:tradingSymbolItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as written communications pursuant to Rule 425 under the Securities Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Securities Act
-Number 230
-Section 425
| Name: |
dei_WrittenCommunications |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
Cheesecake Factory (NASDAQ:CAKE)
Historical Stock Chart
From Oct 2024 to Nov 2024
Cheesecake Factory (NASDAQ:CAKE)
Historical Stock Chart
From Nov 2023 to Nov 2024
