The Cheesecake Factory Incorporated · NASDAQ:CAKE
The Cheesecake Factory — Cheesecake Factory — Investor Presentation (July 2022)
27 slides from The Cheesecake Factory's investor presentation, Jul 27, 2022
Slide 1: Investor Presentation July 27, 2022
Investor Presentation July 27, 2022
Slide 2: Safe Harbor Statement
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, includ
Slide 3: 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 on-going dynamic environment • Best-in-class operational execution and industry-leading retention • Significa
Slide 4: The Cheesecake Factory - Global Footprint
The Cheesecake Factory - Global Footprint 4 High quality, high profile locations worldwide Company-Owned: 209 (Including Toronto, Canada) Toronto International – Licensed: 29 Mexico City (4) Guadalajara Saudi Arabia (4) UAE (6) Kuwait (3) Qatar (3) Bahrain (1) Shanghai (3) Hong Kong Beijing Monterre
Slide 5: Filling White Space for an On-Trend, Contemporary Italian Offering
Filling White Space for an On-Trend, Contemporary Italian Offering 5 • Potential for 200 domestic locations over time - 30 locations in 13 states & Washington D.C. currently • All dishes handmade from scratch daily • Serving lunch, dinner, weekend brunch & weekday happy hour • Average check: ~$30-$4
Slide 6: 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 6 Potential Growth Boutique Brands 61 Total FRC Locations Across the U.S.
Slide 7: We Have Resumed Strong Unit Growth With Impressive Early Results
We Have Resumed Strong Unit Growth With Impressive Early Results 7 2021 New Restaurants Opened The Cheesecake Factory Washington D.C. Blanco Nashville, TN North Italia Birmingham, AL As many as 15 total units planned for 2022 North Italia Franklin, TN North Italia Miami, FL North Italia San Antonio,
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Slide 9: The Cheesecake Factory - A Highly Differentiated Concept
Breadth of Menu & Innovation – 235 Items Made Fresh, From Scratch Ambiance, Service and Hospitality The Cheesecake Factory - A Highly Differentiated Concept Best-in-Class Operational Execution Integrated Bakery 9
Slide 10: Integrated Bakery – The "Cheesecake" Magic
Integrated Bakery – The “Cheesecake” Magic • Produces over 60 cheesecakes and other baked desserts • Enables creativity, quality control and supply chain efficiencies FY19* 16% 10 FY20* 21% Differentiated positioning has been a key sales driver during COVID-19 Industry-Leading Dessert Sales FY21* 19
Slide 11: Best-in-Class Operational Execution and Industry-Leading Retention
Best-in-Class Operational Execution and Industry-Leading Retention Average Tenure by Position 33 years 24 years 20 years 20 years 15 years 14 years Senior VP of Operations Regional Vice Presidents Area Directors of Operations Area Kitchen Operations Managers General Managers Executive Kitchen Manage
Slide 12: Cult Status & Strong Consumer Engagement
Cult Status & Strong Consumer Engagement 1M+ followers 5M fans 360K followers Millions of Viewers 12 Note: Statistics as of July 20, 2022 130K followers Themed filters reaching 5M+ users
Slide 13: 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 SEC 10-K filings and company presentations Average check for The Cheesecake Factory defined as on-premise average check for FY 2021 13 $11.1 $6.4 $5.3 $5.1 $4.1 $3.8 $3.4 $3.3 $3.0
Slide 14: Leveraging This Differentiation in the Off-Premise Channel
9% 12% 14%16% 43% 43% 31%28%27% 28% 25% Off-Premise Sales (% of Total Revenue) Leveraging This Differentiation in the Off-Premise Channel Upgraded Takeout Packaging 14 *Annualized unit volume equivalent based on total system restaurant average weekly sales ~$3.1 million per restaurant* Reflecting CO
Slide 15: Further Leaning in to Convenience
Further Leaning in to Convenience 15
Slide 16: CSR – Contributing to the Well-Being of Our Staff, Local Communities and the Environment
CSR – Contributing to the Well-Being of Our Staff, Local Communities and the Environment We All Share 16 Please refer to the 2021 Cheesecake Factory Corporate Social Responsibility Report.
Slide 17: Sales Leadership, Growth Opportunities, Financial Resiliency
Sales Leadership Growth Opportunities Financial Resiliency 17
Slide 18: Driving Strong Sales Growth Across Portfolio
Driving Strong Sales Growth Across Portfolio 18 2Q22 Comp Sales (vs. 2Q21) +4.7% 2Q22 Average Weekly Sales (AWS) ~$237,000 Equates to $12.3M Annualized Average Unit Volume +12% +11% ~$148,800 Equates to $7.7M Annualized Average Unit Volume ~$148,900 Equates to $7.7M Annualized Average Unit Volume 2Q
Slide 19: Stable, Agile Brands Best Equipped to Thrive Post-COVID
~$4 $1.7 $3.1 2019 Early COVID 4Q21 ~$1.7 Sustained Off-Premise Sales Strength4 (AUV $ millions) We Believe Stable, Agile Brands Will Be Best Equipped to Weather Volatility and Thrive Post-COVID 19 Potential Industry Rationalization - Market Share Opportunity “ ” “Large chains and well-funded restau
Slide 20: 2022 Underlying Key Assumptions
2022 Underlying Key Assumptions(1) 20 (1) Takes into account the impact the latest COVID-19 virus resurgence is having; assumes no additional COVID-19 surges or other material disruptions (2) Includes impact of 53rd week in fiscal 2022 (3) Restaurant Level Margin $3.32 to $3.37 Billion Total Sales(2
Slide 21: Diversified Growth Engines Expected to Drive 7% Unit Growth Annually
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 Grow
Slide 22: History of Outperforming the Industry
(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% (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)% History of Outperforming the Industry 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020* 2021** Knapp-Track Index Com
Slide 23: Capital Allocation Detail
$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 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 Capital Allocation Detail $85 $163 $128 $120 $112 $107 $135 $94 $158 $100 $163 $120 $(47) $146 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 ¹Free c
Slide 24: Appendix
Cay Appendix
Slide 25: 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 adjusted diluted net income/(loss) per share excluding the impact of certain items
Slide 26: Non-GAAP Reconciliation
Non-GAAP Reconciliation (1) 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. (2) The tax effect assumes a tax rate based on the federal statutory
Slide 27: 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 activities to cash flows from financing activities in the consolidated statements of cash flows. The consolidated statements of cash flows for fiscal 2016, 2
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