8-K

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 26, 2023

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 November 1, 2023, a copy of which is furnished as Exhibit 99.1 to this report, The Cheesecake Factory Incorporated (the “Company”) reported third quarter fiscal 2023 financial results.

ITEM 7.01 REGULATION FD DISCLOSURE

On November 1, 2023, the Company posted an updated Investor Presentation on the Company’s Investor Relations website at investors.thecheesecakefactory.com. A copy of the presentation is furnished as Exhibit 99.2 hereto and is incorporated by reference herein.

ITEM 8.01 OTHER EVENTS

On October 26, 2023, the Board declared a quarterly cash dividend of $0.27 per share which will be paid on November 28, 2023 to the stockholders of record of each share of the Company’s common stock at the close of business on November 15, 2023. 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

(d) Exhibits

99.1	Press Release dated November 1, 2023, entitled, “The Cheesecake Factory Reports Results for Third Quarter of Fiscal 2023 and Provides Business Update”
99.2	The Cheesecake Factory Investor Presentation dated November 1, 2023
104.1	Cover Page Interactive Data File (embedded within the inline XBRL document)

SIGNATURES

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

Date:    November 1, 2023	THE CHEESECAKE FACTORY INCORPORATED
	By:	/s/ Matthew E. Clark
		Matthew E. Clark
		Executive Vice President and Chief Financial Officer

EX-99.1

Exhibit 99.1

 

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

THE CHEESECAKE FACTORY REPORTS RESULTS FOR

THIRD QUARTER OF FISCAL 2023 AND PROVIDES BUSINESS UPDATE

CALABASAS HILLS, Calif. – November 1, 2023 – The Cheesecake Factory Incorporated (NASDAQ: CAKE) today reported financial results for the third quarter of fiscal 2023, which ended on October 3, 2023.

Total revenues were $830.2 million in the third quarter of fiscal 2023 compared to $784.0 million in the third quarter of fiscal 2022. Net income and diluted net income per share were $17.9 million and $0.37, respectively, in the third quarter of fiscal 2023.

The Company recorded a pre-tax net expense of $1.5 million primarily related to Fox Restaurant Concepts (“FRC”) acquisition-related expenses. Excluding the after-tax impact of this item, adjusted net income and adjusted net income per share for the third quarter of fiscal 2023 were $19.0 million and $0.39, 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 2.4% year-over-year in the third quarter of fiscal 2023 and increased 12.6% relative to the third quarter of fiscal 2019, on an operating week basis.

“Our third quarter results reflect positive sales trends, as we continued to outperform the broader casual dining industry led by solid comparable sales growth at The Cheesecake Factory restaurants,” said David Overton, Chairman and Chief Executive Officer. “Our performance amidst the softening sales environment is a testament to the resilient consumer demand for the distinct, high-quality dining experiences we provide our guests. Our tenured operators continued to do an excellent job effectively managing their restaurants and consistently delivering exceptional food quality, service and hospitality to drive sales.”

“During the quarter we opened two Cheesecake Factory restaurants to strong demand, further underscoring the enduring appeal and brand affinity for our flagship concept. We remain sharply focused on accelerating our unit growth to achieve our long-term development objectives, even though we continue to experience delays beyond our control. As the macroeconomic environment has gradually stabilized and input costs have continued to improve this year, the stability of our operational and financial performance reinforces our belief we are well positioned to drive meaningful growth, shareholder value and market share gains going forward.”  

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

Development

During the third quarter of fiscal 2023, the Company opened two Cheesecake Factory restaurants, one in Birkdale, NC and the other in Estero, FL. While the Company continues to make progress against its pipeline, opening timelines continued to be pressured by substantial permitting delays, as such the Company is strategically shifting some restaurant openings into the first quarter of fiscal 2024. As a result, the Company now expects to open as many as 16 new restaurants in fiscal 2023 and as many as four to six new restaurants in the first quarter of fiscal 2024. The fiscal 2023 new restaurant openings include as many as five Cheesecake Factory restaurants, four North Italia restaurants, and as many as seven FRC restaurants, including one Flower Child location.

Additionally, the Company expects two Cheesecake Factory restaurants to open internationally under licensing agreements in fiscal 2023.

Liquidity and Capital Allocation

As of October 3, 2023, the Company had total available liquidity of $300.5 million, including a cash balance of $64.0 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 453,400 shares of its stock at a cost of $14.6 million in the third quarter of fiscal 2023. In addition, the Company’s Board of Directors has declared a quarterly dividend of $0.27 per share to be paid on November 28, 2023 to shareholders of record at the close of business on November 15, 2023.

Conference Call and Webcast

The Company will hold a conference call to review its results for the third quarter of fiscal 2023 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 December 1, 2023.

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 325 restaurants throughout the United States and Canada under brands including The Cheesecake Factory^®, North Italia^® and a collection within our Fox Restaurant Concepts business. Internationally, 31 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 2023, we were named to the FORTUNE Magazine “100 Best Companies to Work For^®” list for the tenth consecutive year. To learn more, visit www.thecheesecakefactory.com, www.northitalia.com and www.foxrc.com.

From Fortune ©2023 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 positive sales trends, customer demand, continuing permitting delays, stability of operational and financial performance and restaurant development expectations. 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 rising interest rates, periods of heightened inflation and market instability, and armed conflicts; supply chain disruptions; demonstrations, political unrest, potential damage to or closure of the Company’s restaurants and potential reputational damage to the Company or any of its brands; pandemics and related containment measures, including the potential for quarantines or restriction on in-person dining; acceptance and success of The Cheesecake Factory in international markets; acceptance and success of North Italia and the 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
	October 3, 2023						September 27, 2022						October 3, 2023						September 27, 2022
Consolidated Statements of Income	Amount			Percent of Revenues			Amount			Percent of Revenues			Amount			Percent of Revenues			Amount			Percent of Revenues
Revenues	$	830,210			100.0	%	$	784,001			100.0	%	$	2,562,494			100.0	%	$	2,410,354			100.0	%
Costs and expenses:
Food and beverage cost		194,733			23.5	%		197,774			25.2	%		602,051			23.5	%		590,457			24.5	%
Labor expenses		301,663			36.3	%		293,040			37.4	%		919,340			35.9	%		893,322			37.1	%
Other operating costs and expenses		229,534			27.6	%		217,009			27.7	%		687,459			26.7	%		643,844			26.7	%
General and administrative expenses		54,209			6.5	%		50,324			6.4	%		162,766			6.4	%		149,638			6.2	%
Depreciation and amortization expenses		22,837			2.8	%		22,651			2.9	%		69,124			2.7	%		66,764			2.8	%
Impairment of assets and lease termination expenses		48			0.0	%		-			0.0	%		1,637			0.1	%		313			0.0	%
Acquisition-related contingent consideration, compensation and amortization expenses		1,414			0.2	%		1,081			0.1	%		3,890			0.2	%		2,920			0.1	%
Preopening costs		6,742			0.8	%		4,327			0.6	%		15,800			0.6	%		9,038			0.4	%
Total costs and expenses		811,180			97.7	%		786,206			100.3	%		2,462,067			96.1	%		2,356,296			97.8	%
Income/(loss) from operations		19,030			2.3	%		(2,205	)		(0.3	)%		100,427			3.9	%		54,058			2.2	%
Interest and other expense, net		(2,027	)		(0.3	)%		(1,315	)		(0.1	)%		(6,069	)		(0.2	)%		(3,906	)		(0.1	)%
Income/(loss) before income taxes		17,003			2.0	%		(3,520	)		(0.4	)%		94,358			3.7	%		50,152			2.1	%
Income tax (benefit)/provision		(942	)		(0.2	)%		(1,122	)		(0.1	)%		5,688			0.2	%		3,731			0.2	%
Net income/(loss)	$	17,945			2.2	%	$	(2,398	)		(0.3	)%	$	88,670			3.5	%	$	46,421			1.9	%
Basic net income/(loss) per share	$	0.37					$	(0.05	)				$	1.83					$	0.93
Basic weighted average shares outstanding		48,281						49,653						48,489						50,124
Diluted net income/(loss) per share	$	0.37					$	(0.05	)				$	1.80					$	0.92
Diluted weighted average shares outstanding		48,985						49,653						49,197						50,708

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 3, 2023			September 27, 2022			October 3, 2023			September 27, 2022
Revenues:
The Cheesecake Factory restaurants	$	628,140		$	602,902		$	1,936,621		$	1,853,576
North Italia		62,417			54,113			191,654			163,108
Other FRC		58,642			52,193			193,010			171,045
Other		81,011			74,793			241,209			222,625
Total	$	830,210		$	784,001		$	2,562,494		$	2,410,354
Income/(loss) from operations
The Cheesecake Factory restaurants	$	67,637		$	42,122		$	231,700		$	169,893
North Italia		4,081			1,655			15,314			10,381
Other FRC		1,036			4,109			15,826			18,231
Other		(53,724	)		(50,091	)		(162,413	)		(144,447	)
Total	$	19,030		$	(2,205	)	$	100,427		$	54,058
Depreciation and amortization expenses:
The Cheesecake Factory restaurants	$	15,702		$	15,874		$	47,955		$	47,736
North Italia		1,578			1,556			4,713			4,076
Other FRC		1,891			1,661			5,627			4,712
Other		3,666			3,560			10,829			10,240
Total	$	22,837		$	22,651		$	69,124		$	66,764
Impairment of assets and lease termination expenses:
The Cheesecake Factory restaurants	$	29		$	-		$	160		$	(59	)
North Italia		-			-			-			-
Other FRC		-			-			55			-
Other		19			-			1,422			372
Total	$	48		$	-		$	1,637		$	313
Preopening costs:
The Cheesecake Factory restaurants	$	3,861		$	2,757		$	8,401		$	5,163
North Italia		1,068			1,341			2,132			2,755
Other FRC		1,764			84			4,483			357
Other		49			145			784			763
Total	$	6,742		$	4,327		$	15,800		$	9,038

	13 Weeks Ended			13 Weeks Ended			39 Weeks Ended			39 Weeks Ended
The Cheesecake Factory restaurants operating information:	October 3, 2023			September 27, 2022			October 3, 2023			September 27, 2022
Comparable restaurant sales vs. prior year		2.4	%		1.1	%		3.2	%		8.2	%
Comparable restaurant sales vs. 2019		12.6	%		9.5	%		13.9	%		10.2	%
Restaurants opened during period		2			1			3			1
Restaurants open at period-end		213			209			213			209
Restaurant operating weeks		2,756			2,705			8,227			8,113
North Italia operating information:
Comparable restaurant sales vs. prior year		8	%		10	%		8	%		17	%
Comparable restaurant sales vs. 2019		28	%		18	%		30	%		21	%
Restaurants opened during period		-			1			-			2
Restaurants open at period-end		33			31			33			31
Restaurant operating weeks		429			395			1,287			1,150
Other Fox Restaurant Concepts (FRC) operating information:(1)
Restaurants opened during period		-			1			3			1
Restaurants open at period-end		37			32			37			32
Restaurant operating weeks		481			413			1,394			1,219
Other operating information:(2)
Restaurants opened during period		-			-			1			1
Restaurants open at period-end		40			39			40			39
Restaurant operating weeks		520			507			1,555			1,514
Number of company-owned restaurants:
The Cheesecake Factory		213
North Italia		33
Other FRC		37
Other		40
Total		323

Number of international-licensed restaurants:
The Cheesecake Factory	30

(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 3, 2023		January 3, 2023
Cash and cash equivalents	$	63,987	$	114,777
Long-term debt, net of issuance costs (1)		469,543		468,032

(1) Includes $339.5 million net balance of 0.375% convertible senior notes due 2026 (principal amount of $345 million less $5.5 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/(loss) and net income/(loss) 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/(loss) and diluted net income/(loss) 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 3, 2023			September 27, 2022			October 3, 2023			September 27, 2022
Net income/(loss) (GAAP)	$	17,945		$	(2,398	)	$	88,670		$	46,421
Impairment of assets and lease termination expenses(1)		48			-			1,637			313
Acquisition-related contingent consideration, compensation and amortization expenses(2)		1,414			1,081			3,890			2,920
Tax effect of adjustments(3)		(380	)		(281	)		(1,437	)		(840	)
Adjusted net income/(loss) (non-GAAP)	$	19,027		$	(1,598	)	$	92,760		$	48,814
Diluted net income/(loss) per share (GAAP)	$	0.37		$	(0.05	)	$	1.80		$	0.92
Impairment of assets and lease termination expenses		0.00			-			0.03			0.01
Acquisition-related contingent consideration, compensation and amortization expenses		0.03			0.02			0.08			0.06
Tax effect of adjustments		(0.01	)		(0.01	)		(0.03	)		(0.02	)
Adjusted net income/(loss) per share (non-GAAP)(4)	$	0.39		$	(0.03	)	$	1.89		$	0.96

(1) A detailed breakdown of impairment of assets and lease termination expenses recorded in the thirteen and thirty-nine weeks ended October 3, 2023 and September 27, 2022 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 2023 and 2022 periods.

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

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

EX-99.2

Exhibit 99.2

Investor Presentation November 1, 2023

Safe Harbor Statement 2 This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. This includes, without limitation, financial guidance and projections, including underlying assumptions, and statements with respect to expectations of the Company’s future financial condition, results of operations, cash flows, plans, targets, goals, objectives, performance, growth potential, engines and opportunities and expected growth rates; industry-leading comparable sales growth, retention and competitive position; quality control and supply chain efficiencies; operational execution and retention; annualized average unit volume; the Company’s differentiation and strong foothold in the off-premise channel; statements from the Company’s corporate social responsibility report; the opportunity for additional domestic and foreign locations and licensees and territories; target returns for new restaurant openings; international expansion; North Italia and Fox Restaurant Concepts (“FRC”) as growth drivers and FRC as an incubation engine; anticipated unit growth roadmap; 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 rising 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. Make sure this conforms to 10-Q

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

The Cheesecake Factory - Global Footprint 4 High quality, high profile locations worldwide Company-Owned: 213 (Including Toronto, Canada) Toronto International – Licensed: 31 Mexico City (5) Guadalajara Saudi Arabia (4) UAE (6) Kuwait (3) Qatar (3) Bahrain (1) Shanghai (3) Hong Kong Beijing Monterrey Macau Opportunity for 300 Domestic Locations Over Time & Continued International Expansion

Filling White Space for an On-Trend, Contemporary Italian Offering 5 • Potential for 200 domestic locations over time • 33 locations in 13 states & Washington D.C. • All dishes handmade from scratch daily • Unique menu items tailored to local markets • Serving lunch, dinner, weekend brunch & weekday happy hour • Average check: ~$30-$40 • ~25% alcohol mix 3Q23 Comp Sales (vs. 3Q22): 8% 3Q23 Comp Sales (vs. 3Q19): 28%

Fox Restaurant Concepts (FRC) Expected to Serve as an Incubation Engine Innovating Concepts of the Future 6 Potential Growth Boutique Brands 70 Total FRC Locations Across the U.S.

Culinary Dropout Charlotte, NC Accelerating Unit Growth Across Concepts AS MANY AS 16 NEW UNITS PLANNED FOR 2023 14 RESTAURANTS OPENED IN 2021 13 RESTAURANTS OPENED IN 2022 Doughbird Nashville, TN Doughbird Tucson, AZ The Cheesecake Factory South Beach, FL The Henry Miami, FL Flower Child Tucson, AZ The Cheesecake Factory Birkdale, NC New Restaurants Opened in 2023 The Cheesecake Factory Estero, FL Doughbird Phoenix, AZ

An Experiential Dining Category Leader Food Integrated Bakery Service & Ambiance Breadth of Menu & Innovation 235 Items Made Fresh, From Scratch Integrated Bakery Best-in-Class Service, Hospitality and Operational Execution Innovative, High-Quality Cheesecakes and Other Baked Dessert Items

Integrated Bakery – The “Cheesecake” Magic • Produces over 60 cheesecakes and other baked desserts • Enables creativity, quality control and supply chain efficiencies FY 2019* 16% 10 Industry-Leading Dessert Sales * Percent of total sales FY 2022* 17%

Best-in-Class Operational Execution and Industry-Leading Retention “We found that food and beverage innovation is table stakes; you need to do it, but it’s not sustainable. The ironclad correlation with success? It was GM retention.” – Wally Doolin, Black Box Intelligence** 11 10th CONSECUTIVE YEAR Recognized as a best workplace for diversity, millennials and women Average Tenure by Position* 33 years 25 years 22 years 21 years 12 years 11 years Senior VP of Operations Regional Vice Presidents Area Directors of Operations Area Kitchen Operations Managers General Managers Executive Kitchen Managers *Tenure data as of latest published 10-K; **Restaurant Business, May 2018 2023 PEOPLE Companies that Care logo © 2023 TI Gotham, Inc., a Dotdash Meredith company. Used under license. From Fortune ©2023 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.

Themed filters reaching 5M+ users Cult Status & Strong Consumer Engagement 1M+ followers 5M fans 350K followers Millions of Viewers 12 Note: Statistics as of October 25, 2023 350K followers

Broad Consumer Demographic and Appeal Highest Unit Volumes With a Moderate Average Check ($ in millions) Source: Latest SEC 10-K filings and company presentations; Average check for The Cheesecake Factory defined as on-premise average check. 13 $12.1 $9.5 $7.0 $6.0 $5.5 $4.7 $3.9 $3.4 $3.4 $3.2 Maggiano's Texas Roadhouse BJ's Olive Garden LongHorn Outback Carrabba's Chili's Bonefish $35 $33 $32 $29 $27 $26 $24 $23 $21 $20 $19 Yard House Bonefish Maggiano's Outback LongHorn Carraba's Olive Garden Texas Roadhouse BJ's Chili's Casual Dining Rated #1 Full-Service Chain for Food Quality #1 Quality #2 Service #3 Ambiance

9% 12% 14% 16% 43% 32% 25% 23% 22% 21% Off-Premise Sales (% of Total Revenue) Leveraging This Differentiation in the Off-Premise Channel Upgraded Takeout Packaging 14 ~$2.5 million per restaurant (annualized based on 3Q23*) Reflecting COVID-19 dining restrictions *Annual unit volume equivalent based on total system restaurant average weekly sales Operating weeks * 52 weeks *

Further Leaning in to Convenience 15

>$6M Donated to Feeding America® 93% Of staff believe people are treated fairly regardless of sexual orientation, race, or gender 26% Waste diverted away from landfill 369 HELP Fund Grants Provided 22% Lower GHGs per sq. ft. since 2015 7.3M Pounds food donated SOURCING ENVIRONMENT STAFF & DEI&B COMMUNITY NET ZERO Greenhouse gas target 80% Pork gestation crate-free sourcing 64% Sustainable seafood 700 Local non-profits supported 13yr* Tenure of General Managers & Executive Kitchen Managers CSR – Contributing to the Well-Being of Our Staff, Local Communities and the Environment We All Share 16 Please refer to the 2022 Cheesecake Factory Corporate Social Responsibility Report. Data and restaurants included in the report represent The Cheesecake Factory, North Italia, Grand Lux Cafe, and Social Monk Asian Kitchen unless noted otherwise. *Does not include North Italia or Social Monk Asian Kitchen. From Fortune ©2023 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. 2023 PEOPLE Companies that Care logo © 2023 TI Gotham, Inc., a Dotdash Meredith company. Used under license. Feeding America® is a registered trademark owned by Feeding America non-profit corporation. 10TH Year as one of the FORTUNE 100 Best Companies to Work For® PEOPLE Companies that Care® award recipient 100% Cage-free eggs, 3 years early for bakery operations

Confidential 17 Financial Resiliency Sales Leadership Growth Opportunities

Culinary forward. First class hospitality. Concepts like no other. Diversify Across Experiential Diversifying Our Portfolio Across Experiential For Growth 18

Driving Strong Sales Growth Across Portfolio +1.1% 3Q23 Comp Sales ~$227,900 Equates to $11.9M Annualized Average Unit Volume 3Q23 Average Weekly Sales 3Q23 AWS Note: Average Unit Volumes annualized based on 2Q23 average weekly sales (AWS). 19 ~$145,500 Equates to $7.6M Annualized Average Unit Volume ~$121,900 Equates to $6.3M Annualized Average Unit Volume vs. 3Q22 vs. 3Q19 2.4% 12.6% vs. 3Q22 vs. 3Q19 8% 28% vs. 3Q22 vs. 3Q19 (1)% 21%

“Large chains and well-funded restaurants have the resources to ride out a protracted shutdown, but the independent restaurants that make up two-thirds of the American dining landscape – noodle shops, diners and that charming urban restaurant that always had a line out the door – may not survive.” - New York Times, March 20, 2020 Sales by Channel4 (AUV $ millions) We Believe Stable, Agile Brands Will Be Best Positioned Moving Forward 20 Industry Rationalization: Market Share Opportunity Casual Dining1 * FY 2022 on a 53-week basis Sources: 1Morgan Stanley Report April 6, 2020; 2Bureau of Labor Statistics; 3U.S. Census; 4Annualized average unit volumes based on average weekly sales in each period. Off-Premise Sales Have Stabilized At Elevated Levels Post-Pandemic 86% 14% Independents Chains Off-Premise Only 2 As of May 2021, the NRA estimated that 15% (~90,000) of restaurants have closed. 3 1.4% 1.8% 2.1% 1.3% 1.5% 1.5% 1.8% 2.5% 2.2% 1.9% 0.8% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.6% 0.5%0.5% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Annual Restaurant Unit Growth US Population Growth Off-Premise Only $9.1 $9.1 $1.7 $3.0 2019 2022* Off-Premise On-Premise $10.8 $12.1

2023 Underlying Key Assumptions(1) 21 (1) Assumes no material operating or consumer disruptions (2) On a 52 operating week comparison (3) 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 • As many as 16 new restaurant openings • 5 The Cheesecake Factory locations • 4 North Italia locations • 7 FRC restaurants, including 1 Flower Child location • Q3 2023 dividend of $0.27 per share(3) • Continue to support share repurchase program – at a minimum offset dilution from employee stock-based compensation and support EPS (3) Consolidated Sales Approx. $3.45B 4% YOY Growth Net Income Margin Targeting ~3.9% at stated sales level CCF AUVs Approx. $12.3M ~2% YOY Growth(2) Capital Expenditure $150M - $160M

Diversified Growth Engines Expected to Drive 7% Unit Growth Annually Target Size (productive sq. ft.) 7,000 – 10,000 6,000 - 7,000 3,500 – 15,000 Targeted Average Unit Volume $11M - $12M $7M - $7.5M Avg. $5M - $5.5M Targeted Sales/productive sq. ft. ~$1,100 ~$1,200 ~$1,000 Target Long-Term Unit Growth ~3% ~20%+ ~15% - 20% Top-Line Unit Growth Contribution ~3% ~2% ~2% Target Restaurant-Level Margin % ~18% ~18% - 20% ~16% - 18% Cash Capex Investment $8M+ ~$4M+ $500/sq. ft. Target Cash-on-Cash Return 20% - 25% 35%+ 25% - 30% Sales/Investment Ratio Varies 2:1 2:1 22 Diversified multi-concept across segment, price point, occasion, real estate and labor Leveraging brand power, operational excellence, scale, supply chain and real estate development expertise Anticipated Unit Growth Roadmap ¹Illustrative example of target returns for new restaurant openings ²Average unit volume and steady-state restaurant-level margin typically reached after 3 years of operations ¹ ² ²

(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% 7.0% (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)% 7.4% History of Outperforming the Industry 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 20201 20212 20222 Knapp-Track Index Comparable Sales - Historical 2-year Stack 23 Industry Outperformance During Economic Downturn Geographical discrepancies in dining restrictions & reopening timelines 1) 2020 results reflect the impact of the COVID-19 pandemic. 2) Due to impact of COVID-19 pandemic on 2020 results, 2021 compares against 2019, and 2022 compares against 2021.

24 $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 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 Capital Allocation Detail $85 $163 $128 $120 $112 $107 $135 $94 $158 $100 $163 $120 $(47) $146 $50 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 ¹Free cash flow defined as cash flow from operations (includes adjustment for excess tax benefit related to stock options exercised in 2008-2016 to conform to current year presentation) less capital expenditures and investment in unconsolidated affiliates prior to the acquisition of North Italia and Fox Restaurant Concepts ²2019 Capex/Investment does not include the acquisition of North Italia and Fox Restaurant Concepts Note: 2020 results reflect the impact of the COVID-19 pandemic and the issuance of 200,000 shares of Series A Convertible Preferred Stock. Please refer to the appendix for GAAP to Non-GAAP reconciliations and to SEC filings for an explanation regarding an accounting reclassification for prior years $85 $37 $42 $77 $86 $106 $114 $154 $158 $139 $128 $99 $50 $67 $112 $173 $52 $172 $101 $184 $141 $109 $146 $123 $109 $51 $4 $6 $63 $13 $27 $30 $36 $42 $50 $56 $61 $16 $42 64,009 44,545 50,414 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 Capex / Investment ² Share Repurchases Common Stock Dividend Weighted Average Shares Outstanding Durable Business Over Time Adjusted Earnings/(Loss) Per Common Share Free Cash Flow¹ ($ in millions) ($ in millions) ‘20 ‘20

Appendix

Non-GAAP Reconciliations In addition to the results provided in accordance with the Generally Accepted Accounting Principles (“GAAP”) in this presentation, the Company is providing non-GAAP measurements which present adjusted diluted net income/(loss) per common share excluding the impact of certain items and free cash flow. The non-GAAP measurements are intended to supplement the presentation of the Company’s financial results in accordance with GAAP. The Company believes that the presentation of these items provides additional information to facilitate the comparison of past and present financial results. 26

Non-GAAP Reconciliation (1) A detailed breakdown of impairment of assets and lease termination expenses recorded in the fourteen and fifty-three weeks ended January 3, 2023 and thirteen and fifty-two weeks ended December 28, 2021 can be found in the Selected Segment Information table in the 10-K. (2) 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. (3) The tax effect assumes a tax rate based on the federal statutory rate and an estimated blended state tax rate. (4) Fiscal 2017 includes a $38.5 million benefit to the income tax provision related to tax reform enacted in December 2017. (5) Adjusted diluted net income/(loss) per common share may not add due to rounding. 27 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Net income/(loss) per common share (GAAP) $ 52,293 $ 42,833 $ 81,713 $ 95,720 $ 98,423 $114,356 $101,276 $116,523 $139,494 $157,392 $ 99,035 $127,293 $ (277,107) $ 49,131 $ 43,123 - Impairment of assets and lease termination expenses(1) 2,952 26,541 - 1,547 9,536 (561) 696 6,011 114 10,343 17,861 18,247 219,333 18,139 31,387 - 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) - - - - - - - - - - - 1,033 (3,872) 19,510 13,368 - 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 (2) - - - - - - - - - - - - 22,963 4,917 - - Uncertain tax positions - - - - - - - - - - - - - 7,139 - - Tax effect of adjustments (3) (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) - One-time tax items (4) - - - - - - - - - (38,525) - - - - - Adjusted net income/(loss) per common share (non-GAAP) $ 54,064 $ 64,072 $ 86,138 $ 95,142 $103,726 $114,019 $101,694 $120,130 $139,562 $125,360 $115,770 $116,428 $ (74,934) $ 112,753 $ 76,241 Diluted net income/(loss) per common share (GAAP) $ 0.82 $ 0.71 $ 1.35 $ 1.64 $ 1.78 $ 2.10 $ 1.96 $ 2.30 $ 2.83 $ 3.27 $ 2.14 $ 2.86 $ (6.32) $ 1.01 $ 0.86 - Impairment of assets and lease termination expenses 0.05 0.44 - 0.03 0.17 (0.01) 0.01 0.12 0.00 0.21 0.39 0.41 4.36 0.34 0.62 - Partial IRS settlement - - - (0.03) - - - - - - - - - - - - Termination of Interest rate swap - 0.12 0.12 - - - - - - - - - - 0.04 - - Chairman and CEO employment agreement - 0.04 - - - - - - - - - - - - - - Proceeds from variable life insurance contract - (0.01) - - (0.01) - - - - - - - - - - - Loss on investment in unconsolidated affiliates - - - - - - - - - 0.01 0.10 0.30 - - - - Gain on investment in unconsolidated affiliates - - - - - - - - - - - (1.18) - - - - Acquisition-related costs - - - - - - - - - - - 0.12 0.05 - - - Acquisition-related contingent consideration, compensation and amortization expenses/(benefit) - - - - - - - - - - - 0.02 (0.08) 0.37 0.27 - Dividends on Series A preferred stock - - - - - - - - - - - - 0.27 0.35 - - Net income attributable to Series A preferred stock to apply if-converted method - - - - - - - - - - - - - 0.09 - - Direct and incremental Series A preferred stock issuance costs - - - - - - - - - - - - 0.20 - - - Assumed impact of potential conversion of Series A preferred stock into common stock - - - - - - - - - - - - 0.80 (0.08) - - COVID-19 related costs - - - - - - - - - - - - 0.46 0.09 - - Uncertain tax positions - - - - - - - - - - - - - 0.13 - - Tax effect of adjustments (0.03) (0.23) (0.05) - (0.06) 0.01 - (0.05) 0.00 (0.09) (0.12) 0.09 (1.25) (0.22) (0.23) - One-time tax items - - - - - - - - - (0.80) - - - - - Adjusted diluted net income/(loss) per common share (non-GAAP) (5) $ 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 Fiscal Year The Cheesecake Factory Incorporated Reconciliation of Non-GAAP Financial Measures ($ in thousands, except per share data)

Non-GAAP Reconciliation (1) The excess tax benefit related to stock options exercised is no longer reclassified from cash flows from operating activities to cash flows from financing activities in the consolidated statements of cash flows. The consolidated statements of cash flows for fiscal 2016, 2015, 2014, 2013, 2012, 2011, 2010, 2009 and 2008 have been adjusted to conform to the current year presentation. 28 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Cash flow from operations (1) $ 170 $ 200 $ 170 $ 197 $ 198 $ 213 $ 249 $ 248 $ 316 $ 239 $ 291 $ 219 $ 3 $ 213 $ 162 Capital expenditures / investments 85 37 42 77 86 106 114 154 158 139 128 99 50 67 112 Free cash flow $ 85 $ 163 $ 128 $ 120 $ 112 $ 107 $ 135 $ 94 $ 158 $ 100 $ 163 $ 120 $ (47) $ 146 $ 50 Fiscal Year The Cheesecake Factory Incorporated Reconciliation of Non-GAAP Financial Measures ($ in millions)

XML

Cover	Oct. 26, 2023
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Oct. 26, 2023
Entity File Number	0-20574
Entity Registrant Name	CHEESECAKE FACTORY INCORPORATED
Entity Central Index Key	0000887596
Entity Tax Identification Number	51-0340466
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	26901 Malibu Hills Road
Entity Address, City or Town	Calabasas Hills
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	91301
City Area Code	818
Local Phone Number	871-3000
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, par value $.01 per share
Trading Symbol	CAKE
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false