The Cheesecake Factory Incorporated · NASDAQ:CAKE
The Cheesecake Factory — Cheesecake Factory — Investor Presentation (July 2021)
31 slides from The Cheesecake Factory's investor presentation, Jul 27, 2021
Slide 1: Investor Presentation July 27, 2021
Investor Presentation July 27, 2021
Slide 2: Forward-looking statements
This presentation contains forward - looking statements within the meaning of Section 27 A of the Securities Act of 1933 , as amended, and Section 21 E of the Securities Exchange Act of 1934 , as amended . This includes, without limitation, financial guidance and projections and statements with resp
Slide 3: An Experiential Dining Category Leader
An Experiential Dining Category Leader 3 Culinary forward. First class hospitality. Concepts like no other.
Slide 4: Investment Highlights
• 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 COVID - 19 environment • Best - in - class operational execution and industry - leading retention • Signifi
Slide 5: The Cheesecake Factory - Global Footprint
The Cheesecake Factory - Global Footprint 5 High quality, high profile locations worldwide Company - Owned: 207 Toronto International – Licensed: 28 Mexico City (4) Guadalajara Saudi Arabia (4) UAE (6) Kuwait (3) Qatar (3) Bahrain (1) Shanghai (2) Hong Kong Beijing Monterrey Macau Opportunity for 30
Slide 6: Driving Strong Pandemic Recovery with Industry-Leading Comparable Sales Growth
Driving Strong Pandemic Recovery with Industry - Leading Comparable Sales Growth 6 Leveraging Sales to Drive Margin Performance ~ 16% 16.5% 2019 2Q21 Restaurant - Level Margin* 3QTD through July 26 th Comp Sales vs 2019 +10% 3QTD AWS ~$230,000 Equates to nearly $12M AUV 2Q21 Comp Sales vs 2019 +7.8%
Slide 7: Sustained Off-Premise Sales Strength; Stable, Agile Brands Best Equipped Post-COVID
~$4 $1.7 $1.6 $3.6 $3.2 2019 Early COVID 2Q21 3QTD21 ~$1.7 Sustained Off - Premise Sales Strength 4 (AUV $ millions) 1.4% 1.8% 2.1% 1.3% 1.5% 1.5% 1.8% 2.5% 2.2% 2.4% 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
Slide 8: Filling White Space for an On-Trend, Contemporary Italian Offering
Filling White Space for an On - Trend, Contemporary Italian Offering 8 • Potential for 200 domestic locations over time - 27 locations in 12 states & Washington D.C. currently • All dishes handmade from scratch daily • Serving lunch, dinner, weekend brunch & weekday happy hour • Average check: $25 -
Slide 9: Leveraging Sales to Drive Margin Performance
Driving Strong Pandemic Recovery with Industry - Leading Comparable Sales Growth 9 Leveraging Sales - as well as CAKE Scale and Operational Expertise – to Drive Margin Performance *2Q21 reported results reflect impact of 3 new unit openings year - to - date and other locations that have not yet reac
Slide 10: Fox Restaurant Concepts Expected to Serve as an Incubation Engine
Fox Restaurant Concepts (FRC) Expected to Serve as an Incubation Engine Innovating Concepts of the Future 10 Potential Growth Boutique Brands 55 Total FRC Locations Across the U.S.
Slide 11: Diversified Growth Engines Expected to Drive 7% Unit Growth Annually
Diversified Growth Engines Expected to Drive 7% Unit Growth Annually Beginning in FY22 Target Size (sq. ft.) 7,000 – 10,000 5,000 - 6,500 3,500 – 15,000 Average Unit Volume $10.7M ~$7M Avg. $5M+ Sales/sq. ft. ~$1,000 ~$1,200 ~$1,000 Target Long - Term Unit Growth ~3% ~20%+ ~15% - 20% Top - Line Unit
Slide 12: We Have Resumed Strong Unit Growth With Impressive Early Results
We Have Resumed Strong Unit Growth With Impressive Early Results 12 2020 New Restaurants Opened North Italia McLean, VA Flower Child Houston, TX Flower Child Cherry Creek, CO Flower Child Oklahoma City, OK Blanco Phoenix, AZ Culinary Dropout Scottsdale, AZ 2021 New Restaurants Opened The Cheesecake
Slide 13: Slide 13
Slide 14: The Cheesecake Factory - A Highly Differentiated Concept
Breadth of Menu & Innovation – 250 Items Made Fresh, From Scratch Ambiance, Service and Hospitality The Cheesecake Factory - A Highly Differentiated Concept Best - in - Class Operational Execution Integrated Bakery 14
Slide 15: Integrated Bakery - The Cheesecake Magic
Integrated Bakery – The “Cheesecake” Magic • Produces over 70 cheesecakes and other baked desserts • Enables creativity, quality control and supply chain efficiencies FY19 16% 15 FY20 21% Differentiated positioning has been a key sales driver during COVID - 19 Industry - Leading Dessert Sales
Slide 16: Best-in-Class Operational Execution and Industry-Leading Retention
Best - in - Class Operational Execution and Industry - Leading Retention Average Tenure by Position 32 years 23 years 20 years 19 years 14 years 13 years Senior VP of Operations Regional Vice Presidents Area Directors of Operations Area Kitchen Operations Managers General Managers Executive Kitchen
Slide 17: Performance During COVID Reinforced The Cheesecake Factory is a Destination
Performance During COVID - 19 Has Reinforced That The Cheesecake Factory is a Destination • FY20 average sales per square foot adjusted for interior capacity restrictions related to the COVID - 19 pandemic was $1,127, a 14% increase over FY19. Reflecting the impact of COVID - 19 dining restrictions,
Slide 18: Cult Status & Strong Consumer Engagement
Cult Status & Strong Consumer Engagement 990K followers 5M+ fans 355K followers Millions of Viewers 18 Note: Statistics as of July 21, 2021
Slide 19: Broad Consumer Demographic and Appeal With a Moderate Average Check
Broad Consumer Demographic and Appeal With a Moderate Average Check Highest Unit Volumes ($ in millions) Source: Latest pre - COVID - 19 SEC 10 - K filings and company presentations 19 Casual Dining $10.7 $8.3 $8.1 $5.5 $5.2 $5.0 $3.7 $3.6 $3.0 $2.9 Maggianos Yard House BJ's Texas Roadhouse Olive Ga
Slide 20: Leveraging This Differentiation in the Off-Premise Channel
9% 12% 14% 16% 43% 43% 31% 27% Off - Premise Sales (% of Total Revenue) Leveraging This Differentiation in the Off - Premise Channel New Takeout Packaging 20 *Annualized unit volume equivalent based on total system average weekly sales ~$3.2 million per restaurant* Reflecting COVID - 19 dining restr
Slide 21: Further Leaning in to Convenience
Further Leaning in to Convenience 21
Slide 22: Expanding International Licensed Presence
The Cheesecake Factory – Expanding International Licensed Presence • Anticipated continued expansion within current geographies • Potential for additional geographies with current licensees • Opportunity to add licensees and territories +1 ¢ Per Restaurant in EPS, on Average $0 Capital Expenditure S
Slide 23: Capitalizing on the Power of the Brand
Capitalizing on the Power of the Brand The Cheesecake Factory At Home ® 23
Slide 24: CSR - Contributing to the Well-Being of Our Staff, Communities and Environment
CSR – Contributing to the Well - Being of Our Staff, Local Communities and the Environment We All Share 24 Source: The Cheesecake Factory Incorporated 2019 Corporate Social Responsibility Report *Free from recombinant bovine somatotropin ( rbST ) or a recombinant bovine growth hormone ( rbGH ), ofte
Slide 25: Track Record of Consistent Financial Performance
Track Record of Consistent Financial Performance 25
Slide 26: History of Outperforming the Industry
(4.2)% (6.8)% (0.6)% 4.0% 4.2% 3.3% 2.6% 4.1% 3.8% 0.4% 0.9% 2.5% (27.4)% (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)% History of Outperforming the Industry 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020* Knapp - Track Index Comparable Sales - H
Slide 27: Capital Allocation Detail
27 $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) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Capital Allocation Detail $85 $163 $128 $120 $112 $107 $135 $94 $158 $100 $163 $119 ($47) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 20
Slide 28: sesecake
sesecake “Factory. - PF
Slide 29: Non-GAAP Reconciliations
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 diluted net income/(loss) per share excluding the impact of certain items and f
Slide 30: Non-GAAP Reconciliation
Non - GAAP Reconciliation (1) The tax effect assumes a tax rate based on the federal statutory rate and an estimated blended state tax rate. (2) Fiscal 2017 includes a $38.5 million benefit to the income tax provision related to tax reform enacted in December 2017. (3) Adjusted diluted net income pe
Slide 31: Non-GAAP Reconciliation
Non - GAAP Reconciliation (1) The excess tax benefit related to stock options exercised is no longer reclassified from cash flows from operating activi tie s to cash flows from financing activities in the consolidated statements of cash flows. The consolidated statements of cash flows for fiscal 201
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