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 ...

PART I - FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for the thirteen weeks ended April 4, 2023, highlighting a **9.1%** revenue increase to **$866.1 million** and a rise in net income to **$28.1 million** [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of April 4, 2023, total assets were **$2.74 billion**, liabilities **$2.44 billion**, and stockholders' equity **$299.8 million**, reflecting slight changes from the fiscal year start | Balance Sheet Highlights | April 4, 2023 (in thousands USD) | January 3, 2023 (in thousands USD) | | :--- | :--- | :--- | | **Total Assets** | **$2,742,488** | **$2,775,220** | | Cash and cash equivalents | $116,164 | $114,777 | | Total current assets | $313,636 | $345,768 | | **Total Liabilities** | **$2,442,649** | **$2,483,217** | | Long-term debt | $468,536 | $468,032 | | Total current liabilities | $626,695 | $656,678 | | **Total Stockholders' Equity** | **$299,839** | **$292,003** | [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Revenues for the thirteen weeks ended April 4, 2023, increased **9.1%** to **$866.1 million**, with net income rising to **$28.1 million** and diluted EPS to **$0.56** | Income Statement Highlights | Thirteen Weeks Ended April 4, 2023 (in thousands USD) | Thirteen Weeks Ended March 29, 2022 (in thousands USD) | | :--- | :--- | :--- | | **Revenues** | **$866,114** | **$793,710** | | Income from operations | $33,926 | $28,321 | | **Net Income** | **$28,050** | **$23,163** | | **Diluted EPS** | **$0.56** | **$0.45** | [Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity increased from **$292.0 million** to **$299.8 million** in Q1 2023, driven by net income and offset by dividends and share repurchases - Declared a cash dividend of **$0.27 per share**, totaling **$13.9 million**[17](index=17&type=chunk) - Purchased treasury stock for **$12.4 million** during the quarter[17](index=17&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating activities generated **$65.0 million** in cash, while investing and financing activities used **$38.2 million** and **$25.6 million** respectively, resulting in a net cash increase of **$1.4 million** | Cash Flow Activity | Thirteen Weeks Ended April 4, 2023 (in thousands USD) | | :--- | :--- | | Cash provided by operating activities | $65,035 | | Cash used in investing activities | $(38,162) | | Cash used in financing activities | $(25,558) | | **Net change in cash and cash equivalents** | **$1,387** | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, macroeconomic impacts, long-term debt including a **$400 million** revolver and **$345 million** convertible notes, segment performance, and legal contingencies - Operating results in fiscal 2023 continue to be impacted by supply chain challenges and significant commodity and wage inflation[26](index=26&type=chunk) - As of April 4, 2023, **$130.0 million** was outstanding under the Revolver Facility, with **$238.5 million** in net availability for borrowings[38](index=38&type=chunk) - The company has **$345.0 million** in aggregate principal of 0.375% convertible senior notes due 2026[41](index=41&type=chunk)[48](index=48&type=chunk) Segment Revenues (Q1 2023) | Segment Revenues (Q1 2023) | Revenue (in thousands USD) | | :--- | :--- | | The Cheesecake Factory restaurants | $656,000 | | North Italia | $63,303 | | Other FRC | $68,640 | | Other | $78,171 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2023 financial results, including a **9.1%** revenue increase, comparable sales growth, cost fluctuations, and strategic priorities, projecting fiscal 2023 revenues of approximately **$3.55 billion** [Results of Operations](index=22&type=section&id=Results%20of%20Operations) Q1 2023 revenues rose **9.1%** to **$866.1 million**, driven by comparable sales growth, with labor costs decreasing to **36.0%** and adjusted diluted EPS increasing to **$0.61** - Total revenues increased **9.1%** to **$866.1 million** for Q1 2023[92](index=92&type=chunk) Comparable Sales Growth (Q1 2023 vs Q1 2022) | Comparable Sales Growth (Q1 2023 vs Q1 2022) | Increase | | :--- | :--- | | The Cheesecake Factory | 5.7% | | North Italia | ~9% | - Labor expenses as a percentage of revenue decreased from **37.3%** to **36.0%** year-over-year, primarily due to menu pricing leverage[97](index=97&type=chunk) - Adjusted diluted net income per share increased to **$0.61** from **$0.47** in the prior-year quarter[105](index=105&type=chunk) [Fiscal 2023 Outlook](index=25&type=section&id=Fiscal%202023%20Outlook) Fiscal 2023 outlook projects total revenues of approximately **$3.55 billion**, with plans to open 20-22 new restaurants and Q2 2023 revenues between **$870 million** and **$890 million** - Anticipates total revenue for fiscal 2023 to be approximately **$3.55 billion**[106](index=106&type=chunk) - Plans to open **20 to 22 new restaurants** in fiscal 2023, with capital expenditures of **$165 million to $175 million**[107](index=107&type=chunk) - Expects total revenues for Q2 2023 to be approximately **$870 million to $890 million**[108](index=108&type=chunk) [Liquidity and Capital Resources](index=25&type=section&id=Liquidity%20and%20Capital%20Resources) Primary liquidity source is cash from operations (**$65.0 million** in Q1 2023), with key uses including capital expenditures, dividends, and share repurchases, supported by a **$400 million** revolving credit facility - Cash provided by operating activities increased to **$65.0 million** in Q1 2023 from **$33.5 million** in Q1 2022[111](index=111&type=chunk)[112](index=112&type=chunk) - As of April 4, 2023, **$130.0 million** was outstanding on the Revolver Facility, with **$238.5 million** in net availability[115](index=115&type=chunk) - Repurchased **0.3 million shares** for **$12.4 million** and paid **$13.2 million** in common stock dividends during Q1 2023[117](index=117&type=chunk)[118](index=118&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company discusses market risks from commodity price volatility, interest rate changes on variable-rate debt, and investment fluctuations, noting a hypothetical **1%** interest rate rise would increase annual interest expense by **$1.3 million** - Commodity price volatility remains a key risk, with ongoing inflation above historical levels; a hypothetical **1%** increase in food costs would have negatively impacted cost of sales by **$2.1 million** in Q1 2023[124](index=124&type=chunk)[126](index=126&type=chunk) - The company is exposed to interest rate risk on its Loan Agreement; a hypothetical **1%** rise in interest rates would increase annual interest expense by **$1.3 million**[127](index=127&type=chunk) - Market risk exists for investments supporting non-qualified plans; a hypothetical **10%** decline in market value would reduce net income by **$2.1 million** due to tax impact[127](index=127&type=chunk) [Controls and Procedures](index=29&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of April 4, 2023, with no material changes to internal control over financial reporting identified during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective at the reasonable assurance level as of April 4, 2023[128](index=128&type=chunk) - No material changes in internal control over financial reporting were identified during the quarter[129](index=129&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=30&type=section&id=Item%201.%20Legal%20Proceedings) Note 7 details a tentatively settled wage citation case and two new class-action complaints filed in February 2023 regarding alleged improper website visitor tracking - A 2018 wage citation case has reached a tentative settlement, with an immaterial amount reserved by the company[51](index=51&type=chunk) - Two class-action lawsuits were filed in February 2023 alleging privacy and wiretapping violations due to website tracking, which the company intends to vigorously defend[52](index=52&type=chunk) [Risk Factors](index=30&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were identified from the Annual Report on Form 10-K for the fiscal year ended January 3, 2023 - The company refers to its Annual Report on Form 10-K for a description of risk factors, indicating no material changes during the quarter[132](index=132&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=30&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q1 2023, the company repurchased **341,000 shares**, including **204,000** under a public plan for **$12.4 million** and **137,188** for tax obligations Share Repurchase Activity (Q1 2023) | Share Repurchase Activity (Q1 2023) | Shares (in thousands of shares) | Average Price Paid per Share | | :--- | :--- | :--- | | Total Shares Purchased | 341 | - | | Purchased as Part of Public Plan | 204 | - | | Withheld for Tax Obligations | 137 | - | - The company repurchased **0.3 million shares** at a cost of **$12.4 million** during Q1 2023 under its publicly announced plan[135](index=135&type=chunk) [Exhibits](index=31&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO/CFO certifications and iXBRL formatted financial statements - Lists all exhibits filed with the report, including CEO/CFO certifications and iXBRL data files[137](index=137&type=chunk)

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended January 3, 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. Employer o ...

The Cheesecake Factory Incorporated (NASDAQ:CAKE) Q4 2022 Results Conference Call February 22, 2023 5:00 PM ET Company Participants Etienne Marcus - VP, IR David Overton - Chairman and CEO David Gordon - President Matt Clark - EVP and CFO Conference Call Participants Joshua Long - Stephens Brian Vaccaro - Raymond James Dennis Geiger - UBS Jon Tower - Citigroup Brian Harbour - Morgan Stanley Lauren Silberman - Credit Suisse Jeffrey Bernstein - Barclays Drew North - Robert W. Baird Rahul Krotthapalli - J ...

The Cheesecake Factory Incorporated (NASDAQ:CAKE) Q3 2022 Earnings Conference Call November 1, 2022 5:00 PM ET Company Participants Etienne Marcus - VP of Finance and IR David Overton - Chairman and CEO David Gordon - President Matthew Clark - EVP and CFO Conference Call Participants Nicole Miller - Piper Sandler Sharon Zackfia - William Blair Andy Barish - Jefferies Jared Garber - Goldman Sachs Brian Harbour - Morgan Stanley Jeff Farmer - Gordon Haskett Jeffrey Bernstein - Barclays David Tarantino - Baird ...