Wall Street expects a year-over-year increase in earnings on lower revenues when Cheesecake Factory (CAKE) reports results for the quarter ended December 2023. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on Febr ...

CALABASAS HILLS, Calif.--(BUSINESS WIRE)--The Cheesecake Factory Incorporated (NASDAQ: CAKE) today announced it will release fourth quarter fiscal 2023 financial results after market close on Wednesday, February 21, 2024. The Company will hold a conference call to discuss its results on the same day beginning at 2:00 p.m. Pacific Time. The conference call will be webcast and can be accessed on the Company’s website, investors.thecheesecakefactory.com. A replay of the webcast will be available on the Company ...

Company Overview - The Cheesecake Factory operates in the consumer discretionary/restaurant sector and has a buy rating due to stable dividend income generation and growth potential [1][2] - Founded in 1972, the company is headquartered in California and operates restaurant brands including Cheesecake Factory, North Italia, and Fox Restaurant Concepts [3] Financial Performance - Year-over-year revenue growth was +5.8%, indicating recovery from pandemic-era lows [7] - The company reported a significant earnings growth of +845% year-over-year, recovering from a net loss of -$2.4 million in the previous year [10] - The annual dividend increased from $0.61 in 2014 to $1.08 in 2023, representing a +77% growth over the decade, with a current yield of +3.3% [12] Growth Strategy - The company opened two new restaurants in Q3 2023 in population growth regions of the southeastern U.S., with plans to open four to six new restaurants in Q1 2024 [8][9] - The business model relies on high customer traffic to cover the capital-intensive nature of running brick-and-mortar restaurants, supplemented by food delivery apps [4] Market Context - The consumer discretionary sector improved nearly +29% over the past year, although it has faced a decline in the new year [5] - The forward price-to-earnings (P/E) ratio is 12.87, below the sector average of 16.54, indicating a justified valuation based on earnings growth [17] Valuation Concerns - The price-to-book (P/B) ratio stands at 4.74, significantly higher than the sector average of 2.40, suggesting potential overvaluation [16] - The company's equity showed a slight decline from $323.5 million in September 2022 to $321.6 million in October 2023, indicating flat growth in book value [16] Consumer Sentiment - Positive consumer spending trends and a return to mall shopping are expected to benefit the company's foot traffic and overall performance [20] - The company is well-positioned to navigate potential macroeconomic challenges, including a possible recession in 2024, due to its geographic diversification and growth strategy [20]

PART I FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for the quarterly period ended October 3, 2023, including balance sheets, income statements, cash flows, and detailed notes [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of October 3, 2023, total assets slightly increased to **$2.777 billion**, while cash decreased, and stockholders' equity grew to **$321.6 million** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | October 3, 2023 (Unaudited) | January 3, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $63,987 | $114,777 | | Total current assets | $272,376 | $345,768 | | Property and equipment, net | $777,669 | $746,051 | | Total assets | $2,776,890 | $2,775,220 | | Total current liabilities | $618,520 | $656,678 | | Long-term debt | $469,543 | $468,032 | | Total liabilities | $2,455,246 | $2,483,217 | | Total stockholders' equity | $321,644 | $292,003 | [Condensed Consolidated Statements of Income/(Loss)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%2F%28Loss%29) For Q3 2023, net income reached **$17.9 million** on **$830.2 million** revenue, a significant turnaround from a **$2.4 million** loss in the prior year Income Statement Summary (in thousands, except per share data) | Metric | Thirteen Weeks Ended Oct 3, 2023 | Thirteen Weeks Ended Sep 27, 2022 | Thirty-Nine Weeks Ended Oct 3, 2023 | Thirty-Nine Weeks Ended Sep 27, 2022 | | :--- | :--- | :--- | :--- | :--- | | Revenues | $830,210 | $784,001 | $2,562,494 | $2,410,354 | | Income/(loss) from operations | $19,030 | $(2,205) | $100,427 | $54,058 | | Net income/(loss) | $17,945 | $(2,398) | $88,670 | $46,421 | | Diluted net income/(loss) per share | $0.37 | $(0.05) | $1.80 | $0.92 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash from operations increased to **$150.5 million** for the first nine months of 2023, despite an overall **$50.8 million** decrease in cash and cash equivalents Cash Flow Summary (in thousands) | Cash Flow Activity | Thirty-Nine Weeks Ended Oct 3, 2023 | Thirty-Nine Weeks Ended Sep 27, 2022 | | :--- | :--- | :--- | | Cash provided by operating activities | $150,546 | $98,897 | | Cash used in investing activities | $(100,648) | $(78,057) | | Cash used in financing activities | $(100,629) | $(76,949) | | Net change in cash and cash equivalents | $(50,790) | $(56,470) | | Cash and cash equivalents at end of period | $63,987 | $133,157 | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, fair value measurements, debt, leases, and segment information, including specifics on the Revolver Facility and Convertible Senior Notes - As of October 3, 2023, the company had **$130.0 million** outstanding on its **$400 million** Revolver Facility and **$345.0 million** in aggregate principal of Convertible Senior Notes due 2026[37](index=37&type=chunk)[40](index=40&type=chunk) Segment Revenues (in thousands) | Segment | Thirteen Weeks Ended Oct 3, 2023 | Thirteen Weeks Ended Sep 27, 2022 | | :--- | :--- | :--- | | The Cheesecake Factory restaurants | $628,140 | $602,902 | | North Italia | $62,417 | $54,113 | | Other FRC | $58,642 | $52,193 | | Other | $81,011 | $74,793 | | **Total** | **$830,210** | **$784,001** | - Subsequent to the quarter's end, on October 26, 2023, the Board declared a quarterly cash dividend of **$0.27 per share** and approved a new stock repurchase plan under Rule 10b5-1[69](index=69&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance for the third quarter and first nine months of 2023, covering revenue growth, margin improvements, capital allocation, and fiscal outlook [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Q3 2023 revenues rose **5.9%** to **$830.2 million**, driven by comparable sales growth and improved operating income due to menu pricing offsetting cost inflation - The Cheesecake Factory's Q3 2023 comparable sales increased **2.4%** YoY, driven by a **3.4%** increase in average check, partially offset by a **1.0%** decrease in customer traffic, with off-premise sales constituting **21%** of restaurant sales[93](index=93&type=chunk) - North Italia's Q3 2023 comparable sales grew approximately **8%** YoY, fueled by a **5.5%** increase in average check and a **2.7%** increase in customer traffic[96](index=96&type=chunk) Key Cost Ratios (as % of Revenues) | Cost Category | Q3 2023 | Q3 2022 | | :--- | :--- | :--- | | Food and beverage costs | 23.5% | 25.2% | | Labor expenses | 36.3% | 37.4% | | Other operating costs | 27.6% | 27.7% | [Fiscal Outlook](index=33&type=section&id=Fiscal%20Outlook) The company projects fiscal 2023 total revenue at **~$3.45 billion** with a **~3.8%** net income margin, and anticipates continued growth and margin expansion in 2024 Fiscal 2023 Outlook | Metric | Guidance | | :--- | :--- | | Total Revenue | ~$3.45 billion | | Cost Inflation | Mid-single digit range | | Net Income Margin | ~3.8% | | New Restaurants | Up to 16 | | Capital Expenditures | $150 million - $160 million | Fiscal 2024 Outlook | Metric | Guidance | | :--- | :--- | | Total Revenue | $3.6 billion - $3.7 billion | | Cost Inflation | Low to mid-single digit range | | Net Income Margin | 4.0% - 4.5% | | Capital Expenditures | $175 million - $200 million | [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) Cash from operations totaled **$150.5 million** for the first nine months of 2023, with **$64.0 million** in cash and **$236.5 million** in Revolver Facility availability as of October 3, 2023 - During the first nine months of 2023, cash and cash equivalents decreased by **$50.8 million** to **$64.0 million**[123](index=123&type=chunk) - The company opened seven restaurants in the first nine months of 2023 and plans to open as many as 16 for the full fiscal year[127](index=127&type=chunk) - As of October 3, 2023, the company had a **$130.0 million** outstanding balance on its Revolver Facility, with net availability of **$236.5 million**[130](index=130&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks from commodity price volatility, interest rate fluctuations, and investment value changes, with mitigation efforts noted - A hypothetical **1%** increase in food costs would have negatively impacted cost of sales by **$1.9 million** in Q3 2023[142](index=142&type=chunk) - Based on outstanding borrowings, a hypothetical **1%** rise in interest rates would increase annual interest expense by **$1.3 million**[143](index=143&type=chunk) [Item 4. Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of October 3, 2023, with no material changes in internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of October 3, 2023[144](index=144&type=chunk) - No changes in internal control over financial reporting occurred during the fiscal quarter that have materially affected, or are reasonably likely to materially affect, the company's internal controls[145](index=145&type=chunk) PART II OTHER INFORMATION [Item 1. Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to various legal proceedings, including a tentative wage citation settlement and dismissed class action complaints, with no material adverse effect expected - The company is involved in a wage citation case from 2018 which has reached a tentative settlement, for which an immaterial amount has been reserved[52](index=52&type=chunk) - Two class action complaints filed in February 2023 regarding alleged improper website tracking were voluntarily dismissed by the plaintiffs in May 2023[53](index=53&type=chunk) [Item 1A. Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended January 3, 2023, have occurred - The company directs investors to the risk factors detailed in its Annual Report on Form 10-K for the fiscal year ended January 3, 2023, indicating no material updates during the quarter[147](index=147&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q3 2023, the company repurchased **453,000 shares** of common stock, contributing to **56.2 million shares** repurchased cumulatively under authorization Share Repurchases in Q3 2023 (in thousands, except per share data) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | July 5 – Aug 8, 2023 | 114 | $36.09 | | Aug 9 – Sep 5, 2023 | 107 | $33.21 | | Sep 6 – Oct 3, 2023 | 232 | $29.68 | | **Total** | **453** | N/A | - Through October 3, 2023, the company has cumulatively repurchased **56.2 million shares** at a total cost of **$1,801.9 million**, out of a total authorization of **61.0 million shares**[150](index=150&type=chunk) [Item 5. Other Items](index=42&type=section&id=Item%205.%20Other%20Items) No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the third fiscal quarter of 2023 - No director or officer of the Company adopted or terminated a "Rule 10b5-1 trading arrangement" or a "non-Rule 10b5-1 trading arrangement" during the third fiscal quarter of 2023[151](index=151&type=chunk) [Item 6. Exhibits](index=43&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications of principal officers and financial statements in iXBRL format

Growth Strategy - The company aims for significant growth, projecting as many as 16 new units in 2023 across various concepts[16] - North Italia has the potential for 200 domestic locations over time[11] - The company sees an opportunity for 300 domestic locations over time and continued international expansion[8] - The company expects 7% annual unit growth driven by diversified growth engines[56] Financial Performance & Metrics - North Italia's 3Q23 comp sales increased by 8% compared to 3Q22 and 28% compared to 3Q19[12] - North Italia's annualized average unit volume equates to approximately $11.9 million[49] - The Cheesecake Factory's off-premise sales are approximately $2.5 million per restaurant annualized based on 3Q23[35] - The company targets a net income margin of approximately 3.9% at stated sales level[54] - The company projects consolidated sales of approximately $3.45 billion[53] Brand & Operations - The Cheesecake Factory menu has 235 items made fresh, from scratch[18] - North Italia has an alcohol mix of approximately 25%[11]

The Cheesecake Factory Incorporated (NASDAQ:CAKE) Q3 2023 Earnings Conference Call November 1, 2023 5:00 PM ET Company Participants Etienne Marcus - Vice President, Finance and Investor Relations David Overton - Chairman and Chief Executive Officer David Gordon - President Matt Clark - Executive Vice President and Chief Financial Officer Conference Call Participants Andy Barish - Jefferies Sharon Zackfia - William Blair Joshua Long - Stephens Jon Tower - Citi Lauren Silberman - Deutsche Bank Brian Mullan - ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 4, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 0-20574 THE CHEESECAKE FACTORY INCORPORATED (Exact name of registrant as specified in its charter) Delaware 51-0340466 (State or other jurisdiction (I.R.S. Empl ...

The Cheesecake Factory Incorporated (NASDAQ:CAKE) Q2 2023 Earnings Conference Call August 2, 2023 5:00 PM ET Company Participants Etienne Marcus - VP, Finance and IR David Overton - Chairman and CEO David Gordon - President Matthew Clark - EVP and CFO Conference Call Participants Brian Mullan - Piper Sandler John Park - Wells Fargo Dennis Geiger - UBS Joshua Long - Stephens Inc. Brian Vaccaro - Raymond James Sharon Zackfia - William Blair Brian Harbour - Morgan Stanley Andy Barish - Jefferies David Tarantin ...

Cheesecake Factory, Inc. (NASDAQ:CAKE) Q1 2023 Earnings Conference Call May 10, 2023 5:00 PM ET Company Participants Etienne Marcus - VP, Finance & IR David Overton - Chairman & CEO David Gordon - President Matthew Clark - EVP & CFO Conference Call Participants Sharon Zackfia - William Blair & Company Joshua Long - Stephens Inc. Brian Harbour - Morgan Stanley Jon Tower - Citigroup John Ivankoe - JPMorgan Chase & Co. Lauren Silberman - Crédit Suisse Dennis Geiger - UBS Jeffrey Bernstein - Barclays Bank Brian ...

lthe eesecake Factory. Investor Presentation May 10, 2023 Safe Harbor Statement 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, plan ...