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The Cheesecake Factory Announces $200 Million Strategic Investment From Roark Capital
CALABASAS HILLS, Calif.--(BUSINESS WIRE)-- The Cheesecake Factory Incorporated (NASDAQ: CAKE) today announced that it has closed on a $200 million
About this update from The Cheesecake Factory Incorporated
[{"type":"text","content":" CALABASAS HILLS, Calif.--(BUSINESS WIRE)--\n\nThe Cheesecake Factory Incorporated (NASDAQ: CAKE) today announced that it has closed on a $200 million convertible preferred investment from affiliates of Roark Capital. \n\n\n“We are pleased to have found a high-quality partner in Roark, who we are confident will add significant value to The Cheesecake Factory Incorporated,” said David Overton, Chairman and Chief Executive Officer. “This transaction not only meaningfully enhances our liquidity position to navigate the near-term COVID-19 landscape and get our affected staff members back to work as soon as practicable, but also importantly, solidifies our ability to manage the business for the long-term for all of our stakeholders once we emerge on the other side of this crisis. Moreover, Roark’s investment underscores the strength of our brands, market positioning and long-term growth prospects.”\n\n\nNeal Aronson, Founder and Managing Partner of Roark said, “We have long admired The Cheesecake Factory and the culture that David and his team have built.” In connection with this investment, the Board of Directors will be expanded from eight to nine members and Paul Ginsberg, President of Roark, will join the Company’s Board of Directors as an independent member. Ginsberg said, “We believe The Cheesecake Factory, North Italia and the FRC brands are uniquely positioned to maintain their leadership in experiential dining and look forward to a partnership with the board and management team to drive long-term value for all shareholders.”\n\n\nWells Fargo Securities, LLC and J.P. Morgan Securities LLC served as financial advisors and Latham & Watkins LLP served as legal advisor to The Cheesecake Factory Incorporated in this transaction. Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal advisor to Roark.\n\n\nAbout The Cheesecake Factory Incorporated\n\n\nThe 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 294 restaurants throughout the United States and Canada under brands including The Cheesecake Factory®, North Italia® and a collection within the Fox Restaurant Concepts subsidiary. Internationally, 26 Th...