INVESTOR PRESENTATION October 28, 2025 SAFE HARBOR STATEMENT / NON-GAAP INFORMATION Non-GAAP Financial Measures 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 free cash flow, adjusted net income, adjusted diluted net income per common share, adjusted net income margin and adjusted earnings before interest, tax, depreciation and amortization ("EBITDA"). The non-GAAP ...

Core Insights - The chain reported a profit of $31.9 million amid a softer operating environment for the restaurant industry [1] Company Performance - The reported profit of $31.9 million indicates the company's ability to maintain profitability despite challenges [1] Industry Context - The operating environment for the restaurant industry is described as softer, suggesting potential headwinds affecting overall performance [1]

Financial Performance - Total revenues for Q3 fiscal 2025 were $907.2 million, up from $865.5 million in Q3 fiscal 2024, representing a year-over-year increase of 4.1%[2] - Net income for Q3 fiscal 2025 was $31.9 million, with diluted net income per share at $0.66, compared to $29.99 million and $0.61 per share in Q3 fiscal 2024[2][16] - Total revenues for the 13 weeks ended September 30, 2025, were $907.226 million, an increase from $865.471 million for the same period in 2024, representing a growth of 4.0%[18] - The company reported an income from operations of $37.269 million for the 13 weeks ended September 30, 2025, compared to $33.700 million for the same period in 2024, marking an increase of 10.5%[18] - Net income (GAAP) for the 13 weeks ended September 30, 2025, was $31,899 million, compared to $29,994 million for the same period last year, representing a growth of 6.3%[27] - Adjusted net income (non-GAAP) for the 39 weeks ended September 30, 2025, was $134,656 million, up from $116,894 million in the prior year, reflecting a year-over-year increase of 15.1%[27] - Diluted net income per share (GAAP) increased to $0.66 for the 13 weeks ended September 30, 2025, compared to $0.61 in the same period last year, marking an 8.2% rise[27] - Adjusted diluted net income per share (non-GAAP) for the 39 weeks ended September 30, 2025, was $2.77, up from $2.40 in the previous year, indicating a growth of 15.4%[27] Sales and Restaurant Operations - Comparable restaurant sales increased by 0.3% year-over-year in Q3 fiscal 2025, indicating stable performance amid a competitive environment[4] - Comparable restaurant sales for The Cheesecake Factory increased by 0.3% compared to the prior year for the 13 weeks ended September 30, 2025, while North Italia experienced a decline of 3%[21] - The company opened two new FRC restaurants and two Cheesecake Factory restaurants internationally in Q3 fiscal 2025, remaining on track to open up to 25 new restaurants by the end of the fiscal year[6] - The Cheesecake Factory opened 2 new restaurants during the 39 weeks ended September 30, 2025, compared to 1 new restaurant in the same period of 2024[21] Expenses and Costs - Total costs and expenses for the 13 weeks ended September 30, 2025, were $869.957 million, up from $831.771 million in the same period of 2024, reflecting an increase of 4.6%[18] - Labor expenses accounted for 35.6% of total revenues in Q3 fiscal 2025, slightly down from 35.9% in Q3 fiscal 2024, reflecting improved labor productivity[16] - The Cheesecake Factory's total food and beverage costs for the 39 weeks ended September 30, 2025, were $605.758 million, up from $559.932 million in the same period of 2024, an increase of 8.2%[18] - The company’s general and administrative expenses for the 39 weeks ended September 30, 2025, were $177.706 million, compared to $56.204 million for the same period in 2024, indicating a significant increase[18] Liquidity and Debt - Total available liquidity as of September 30, 2025, was $556.5 million, including a cash balance of $190.0 million and $366.5 million available on the revolving credit facility[7] - Cash and cash equivalents as of September 30, 2025, were $189.978 million, significantly higher than $84.176 million at the end of 2024[23] - Current and long-term debt increased to $629.156 million as of September 30, 2025, from $452.062 million at the end of 2024[23] Other Financial Metrics - The company recorded a pre-tax net expense of $0.8 million related to acquisition expenses for Fox Restaurant Concepts[3] - The company recorded impairment of assets and lease termination expenses of $(104) million for the 13 weeks ended September 30, 2025, compared to $(3,472) million for the same period last year[27] - Acquisition-related contingent consideration and compensation expenses amounted to $910 million for the 13 weeks ended September 30, 2025, down from $1,020 million in the prior year[27] - The tax effect of adjustments for the 39 weeks ended September 30, 2025, was $(5,020) million, compared to $(445) million for the same period last year[27] - The company reported a loss on extinguishment of debt of $15,891 million for the 39 weeks ended September 30, 2025, with no such loss reported in the previous year[27] - The uncertain tax position related to tenant improvement allowances resulted in an expense of $717 million for both the 13 and 39 weeks ended September 30, 2025[27] Strategic Focus - The Cheesecake Factory's focus on menu innovation and customer experience has led to steady sales trends and positive early results from recent menu updates[5] - The company aims to achieve its unit growth objective for the year, with ongoing confidence in navigating the current softer restaurant industry environment[5] - The company anticipates continued growth in adjusted net income and earnings per share as it expands its market presence and enhances operational efficiencies[27]

Core Insights - The Cheesecake Factory is set to report its third-quarter fiscal 2025 earnings on October 28, with projected EPS of $0.60 and revenue of approximately $913 million [1][2] Financial Performance - Analysts forecast a 3.5% increase in EPS from $0.58 reported in the same quarter last year, driven by strong demand, menu innovations, and efficient cost management [2] - The company has consistently outperformed earnings expectations, with an average surprise of 15.2% over the last four quarters [2][6] - In the most recent quarter, CAKE reported earnings of $1.16 per share, exceeding the Zacks Consensus Estimate of $1.06 per share, resulting in a 9.43% surprise [3] Market Valuation - CAKE's price-to-earnings (P/E) ratio is approximately 16.39, and the price-to-sales ratio is about 0.76, indicating a valuation of $0.76 for every dollar of sales [4] - The enterprise value to sales ratio stands at around 1.29, reflecting the company's total valuation in relation to its sales [4] Financial Health - The current ratio is approximately 0.20, indicating potential liquidity challenges for the company [5][6] - The debt-to-equity ratio is notably high at 5.24, suggesting a significant reliance on debt financing over equity [5][6]

Core Insights - The Cheesecake Factory Incorporated (CAKE) is set to report its third-quarter fiscal 2025 results on October 28, with a history of beating earnings estimates in the past four quarters, averaging a surprise of 15.2% [1] Estimate Revisions - The Zacks Consensus Estimate for fiscal third-quarter earnings per share (EPS) is 60 cents, reflecting a 3.5% increase from 58 cents in the same quarter last year [2] - Revenue expectations are approximately $912.9 million, indicating a 5.5% rise from the previous year's quarter [2] Factors Influencing Quarterly Results - The company's performance is expected to benefit from steady demand, disciplined cost management, and sustained brand relevance, with strategic menu innovations like "Bowls" and "Bites" contributing to comparable sales growth [3] - Engagement from the Cheesecake Rewards program is anticipated to enhance top-line performance, with total revenues projected between $905 million and $915 million [3] Revenue Contributions - Strong contributions from North Italia Restaurants and Other FRC are expected, with revenues predicted to rise 14.6% to $82.3 million and 34.3% to $90 million year-over-year, respectively [4] Profitability Outlook - Profitability is expected to remain healthy due to operational excellence, improved labor retention, and favorable commodity costs, with four-wall margins reaching 18.5% in the prior quarter [5] - The company aims to maintain margins within a long-term target range of 16% to 18% through efficiency and guest satisfaction [5] Cost Challenges - Modest wage inflation, higher medical costs, and increased pre-opening expenses may partially offset profitability gains, with labor expenses projected to rise 5.5% year-over-year to $328.2 million [6] Earnings Prediction - The model predicts an earnings beat for Cheesecake Factory, supported by a positive Earnings ESP of +3.85% and a Zacks Rank of 3 (Hold) [7][9] - The expected Q3 EPS is $0.60 on revenues of $912.9 million, with menu enhancements and loyalty engagement likely aiding comparable sales growth [8]

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LOS ANGELES, Sept. 25, 2025 (GLOBE NEWSWIRE) -- CAKE has announced a global deal with Disney Branded Television for two seasons of live-action VFX series “Armorsaurs”, produced by MGA Entertainment. The first season of 13 x 22-minute episodes will premiere Oct. 13 on Disney XD at 8:00 p.m. EDT/PDT in the U.S. and will roll out on Disney+ in Feb. 2026. The deal also includes select full episodes, shorts and exclusive content to launch on Disney Channel YouTube. In 2026, MGA will expand the “Armorsaurs” unive ...

Group 1: Valuation Scores and Market Confidence - Two leading restaurant chains are showing strong valuation scores in Benzinga's Edge Stock Rankings, indicating robust fundamentals amid low valuations [1] - The Value score is based on stock valuation relative to peers, focusing on fundamental business metrics such as assets, earnings, sales, and operating performance [2] - A rising percentile score for a stock indicates growing market confidence in its underlying value proposition relative to market valuation [3] Group 2: RCI Hospitality Holdings Inc. - RCI Hospitality Holdings Inc. has seen its Value score increase from 55.6 to 62.9 within a week [4] - The stock's low valuation of 13 to 14 times earnings, compared to a historical average of 25 to 26 times and an industry average of 24.4 times, contributes to this increase [5] - The stock scores high on Quality and Value but has an unfavorable price trend in the short, medium, and long terms [6] Group 3: Cheesecake Factory Inc. - Cheesecake Factory Inc. has increased its Value score by 5.75 points, reaching 38.36 from 32.61 in just a week [7] - Comparable sales at flagship restaurants rose by 1.2%, indicating steady consumer demand despite industry pressures [7] - Management highlighted "continued margin expansion" due to operational efficiencies, contributing to stronger profitability [7] - The stock scores high on Momentum, Growth, Value, and Quality, with a favorable long-term price trend [8]

Core Insights - Investors in the Retail - Restaurants sector may consider Cheesecake Factory (CAKE) and Dutch Bros (BROS) as potential undervalued stocks [1] Valuation Metrics - Both CAKE and BROS currently hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and improving earnings outlooks [3] - CAKE has a forward P/E ratio of 15.01, while BROS has a significantly higher forward P/E of 95.39 [5] - The PEG ratio for CAKE is 1.35, suggesting a reasonable valuation relative to its expected earnings growth, whereas BROS has a PEG ratio of 3.13, indicating overvaluation [5] - CAKE's P/B ratio is 7.02, compared to BROS's P/B of 12.73, further highlighting CAKE's relative undervaluation [6] - Based on these valuation metrics, CAKE is assessed as the superior value option compared to BROS [7]

Company Performance - Build-A-Bear (BBW) has shown a year-to-date performance increase of approximately 60.7%, significantly outperforming the average gain of 9.7% in the Retail-Wholesale sector [4] - The Zacks Consensus Estimate for BBW's full-year earnings has increased by 5% over the past 90 days, indicating a positive shift in analyst sentiment and an improving earnings outlook [3] Industry Comparison - Build-A-Bear belongs to the Retail - Miscellaneous industry, which includes 17 companies and currently ranks 28 in the Zacks Industry Rank, with an average gain of 8.8% this year, further highlighting BBW's strong performance [5] - In contrast, the Retail - Restaurants industry, which includes Cheesecake Factory (CAKE), has seen a decline of 6.8% this year, ranking 175 among 39 stocks [6]