The Cheesecake Factory Incorporated · NASDAQ:CAKE
The Cheesecake Factory — Cheesecake Factory — Q1 2025 Earnings Presentation
38 slides from The Cheesecake Factory's earnings presentation, Apr 30, 2025
Slide 1: Investor Presentation April 30, 2025
INVESTOR PRESENTATION April 30, 2025
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: Company Overview
COMPANY OVERVIEW
Slide 4: Investment Highlights
INVESTMENT HIGHLIGHTS 4 • Experiential dining category leader with diversified growth engines • Best-in-class operational execution and industry-leading retention • Significant growth opportunities driving one of the highest expected growth rates in the casual dining industry • Differentiation and s
Slide 5: CAKE at a Glance
CAKE AT A GLANCE 5 (1) Market data as of April 1, 2025. (2) Represents fiscal year 2024 revenue for the twelve months ended December 31, 2024. (3) Locations as of April 30, 2025. We own and operate 358 restaurants(3) across the US and Canada including: • 215 The Cheesecake Factory locations • 45 Nor
Slide 6: The Cheesecake Factory
GBsecake ‘Factory.
Slide 7: Global Footprint
GLOBAL FOOTPRINT 7 Company-Owned: 215 (Including Toronto, Canada) Latin America Mexico City (5) Monterrey (1) Guadalajara (1) Querétaro (1) Asia Shanghai (3) Beijing (1) Chengdu (1) Hong Kong (1) Macau (1) Thailand (1) Middle East UAE (6) Saudi Arabia (4) Kuwait (3) Qatar (3) Bahrain (1) Internation
Slide 8: A Highly Differentiated Concept
8 High-Energy Atmosphere Contemporary Décor Distinct, High-Quality Cheesecakes and Desserts Best-in-Class Execution Exceptional Service Menu Breadth and Innovation Made Fresh From Scratch MENU OPERATIONS AMBIANCE BAKERY A HIGHLY DIFFERENTIATED CONCEPT
Slide 9: Integrated Bakery – The Cheesecake Magic
9 INTEGRATED BAKERY – THE “CHEESECAKE” MAGIC Enables creativity, quality control and supply chain efficiencies 57 Varieties of cheesecakes & 2 desserts Bakery production facilities 17% FY 2024(1) 1 FY 2019 6% (1) (1) Percent of total sales. Impressive Level of Dessert Sales
Slide 10: Best-in-Class Staffing and Operations
BEST-IN-CLASS STAFFING AND OPERATIONS 10 Well-positioned to attract and retain high-quality, experienced staff as an employer of choice • Top-tier recruiting and training programs • Fortune ‘100 Best Companies to Work For®’ List for 12 consecutive years • Competitive compensation, benefits and healt
Slide 11: Differentiation in Off-Premise
DIFFERENTIATION IN OFF-PREMISE 11 • Extensive menu with over 225 items made from scratch daily • Large portions designed for sharing • Lower incremental delivery pricing versus peers • Fully integrated systems for better execution • Separate bakery counter and register for pick-up of orders Exceptio
Slide 12: Iconic Brand and Cult Status
12 ICONIC BRAND AND CULT STATUS
Slide 13: Strong Consumer Engagement
Followers(1) (in thousands) Followers / $M Sales(2) Followers / $M Sales Instagram Followers 0 200 400 600 800 1,000 1,200 CAKE Maggiano's Outback Bonefish YardHouse Olive Garden Chili's Cracker Barrel BJ's Restaurants Carrabba's LongHorn Texas Roadhouse - 75 150 225 300 375 450 CAKE Maggiano's Outb
Slide 14: Broad Appeal and Brand Affinity
BROAD APPEAL AND BRAND AFFINITY 14 Diverse Appeal Across a broad demographic range Extensive Menu Something for every taste, every price point Special Occasions Seen as a destination for experiential dining Signature Desserts High-quality cheesecakes and desserts Consumers (millennials in particular
Slide 15: Cheesecake Rewards Program
CHEESECAKE REWARDS® 15 PROGRAM OBJECTIVE A SURPRISE and DELIGHT program To leverage data analytics to engage more effectively with our guests and drive incremental sales while maintaining our restaurant level margins Published Offers To support member acquisition and on-going engagement Offered to a
Slide 16: Highest Unit Volumes in the Industry
$12.3 $9.8 $9.7 $8.5 $6.2 $5.6 $4.9 $4.0 $3.6 $3.6 $3.2 Maggiano's Yard House Texas Roadhouse BJ's Olive Garden LongHorn Outback Chili's Carrabba's Bonefish With a Moderate Average Check(1) Driving the Highest Unit Volumes in the Industry(1) ($ in millions) $36 $36 $35 $31 $29 $28 $26 $23 $23 $23 $2
Slide 17: North Italia
17
Slide 18: North Italia Concept
18 • Filling White Space for an On-Trend, Contemporary Italian Offering • Menu features classic Italian favorites with a fresh twist from hand-tossed pizzas and homemade pastas to crave-worthy appetizers, salads and seasonal entrees • Unique menu items tailored to local markets • All dishes handmade
Slide 19: North Italia Growth Potential
19 • Potential for 200 domestic locations over time • Currently have 45 locations in 14 states & Washington D.C. • Italian is one of the most popular ethnic cuisines in the United States • Targeting ~20% average annual unit growth • Attractive return profile and sales growth Comp Sales 1Q25 (vs. 1Q2
Slide 20: Flower Child
ELOWER C D ———— FLOWER CHILD HEALTHY FOOD FOR A HAPPY WORLD FLOWER CHILD
Slide 21: Flower Child Concept and Growth
• Potential for 700 domestic locations over time • A differentiated concept in the growing fast casual dining segment • 40 locations in 13 states • Targeting ~20% average annual unit growth • A healthy, balanced dining experience with organic, gluten-free and vegan dishes • All dishes handmade from
Slide 22: Fox Restaurant Concepts
FOX RESTAURANT CONCEPTS wildflower ARROGANT
Slide 23: Fox Restaurant Concepts (FRC)
FOX RESTAURANT CONCEPTS (FRC) 23 FRC HIGHLIGHTS • Locations: 51 • Geographies 11 states • FY 2024 Revenue(1) $300M (1) Fiscal year 2024 revenue represents revenue for the twelve months ended December 31, 2024 and excludes revenue for Flower Child. FRC serves as an incubator, innovating new food, din
Slide 24: Diversifying Our Portfolio Across Experiential Concepts
Culinary forward. First class hospitality. Concepts like no other. DIVERSIFYING OUR PORTFOLIO ACROSS EXPERIENTIAL FOR GROWTH 24 National Expansion Boutique Brands Incubation Stage Testing Growth Global Footprint
Slide 25: Accelerating Unit Growth
25 13 NEW RESTAURANTS OPENED IN 2022 16 NEW RESTAURANTS OPENED IN 2023 ACCELERATING UNIT GROWTH 23 NEW RESTAURANTS OPENED IN 2024 BLANCO CULINARY DROPOUT AS MANY AS 25 NEW UNITS IN 2025 11 NROs YTD As of April 30, 2025 Tempe, AZ THE HENRY Phoenix, AZ FLOWER CHILD Houston, TX Tempe, AZ Indianapolis,
Slide 26: Financial Performance
FINANCIAL PERFORMANCE
Slide 27: Driving Strong Sales Growth
27 DRIVING STRONG SALES GROWTH FY 2024 COMP SALES AVERAGE WEEKLY SALES (2) FY 2024 AVERAGE WEEKLY SALES Q1 2025 COMP SALES AVERAGE WEEKLY SALES (2) Q1 2025 vs 2023 1.0% 2% vs 2023 (4)% vs 1Q24 1.0% (1)% vs 1Q24 (1)% ~$240,700 Equates to $12.5M Annualized AUV(1) ~$148,900 Equates to $7.7M Annualized
Slide 28: Q1 2025 Highlights
Q1 2025 HIGHLIGHTS(1) 28 Total Revenue $927M Up 4% from PY Adj. Net Inc. Margin 4.9% Up 90 bps from PY Capital Allocation (1) A reconciliation of Non-GAAP measures can be found in the appendix. (2) Represents total company owned and operated restaurants across the US and Canada. (3) Includes $130 mi
Slide 29: Debt Refinancing
DEBT REFINANCING 29 • On February 28th, issued $575M of 2.00% Convertible Senior Notes due 2030 • Net interest expense is expected to increase by approximately $1M to $1.5M; this impact has been factored into FY 2025 guidance • Deployed net proceeds of approximately $559M to: • Repurchase Convertibl
Slide 30: 2025 Underlying Key Assumptions
2025 UNDERLYING KEY ASSUMPTIONS(1) 30 (1) Assumes no material operating or consumer disruptions as well as assumptions with respect to future decisions, which are subject to change. Actual results will vary and those variations may be material. (2) Future decisions to pay or to increase or decrease
Slide 31: Quality Growth Opportunity
QUALITY GROWTH OPPORTUNITY 31 New Unit Growth Targets(1)(2) Size(3) Sales per Sq Ft(3) Annual Unit Growth 7,000 -10,000 ~$1,100 - $1,200 ~2% - 3% 6,000 -7,000 ~$1,200 - $1,300 ~20% 3,000 -4,000 ~$1,100 - $1,200 ~20% 3,500 -15,000 ~$1,100 ~10% - 15% Diversified Portfolio Differentiated experiential c
Slide 32: Market Potential: Large TAM Runway
MARKET POTENTIAL LARGE TAM RUNWAY 32 # OF LOCATIONS(1) FY 2024 AUVS $12.3M 215 $7.7M 45 $4.4M 40 MARKET POTENTIAL 300 200 700 (1) Locations as of April 30, 2025. ~$3.1B ~$8.5B FUTURE REVENUE OPPORTUNITY REVENUE GROWTH $5BPOTENTIAL NOTABLE UPSIDE POTENTIAL FROM OTHER GROWTH CONCEPTS FY 2024
Slide 33: History of Outperforming the Industry
HISTORY OF OUTPERFORMING THE INDUSTRY 2.5% (27.4)% 3.3% 10.5% 13.9% 14.9% 1.4% (24.0)% (0.9)% 6.5% 10.3% 11.8% Geographical discrepancies in dining restrictions & reopening timelines Knapp-Track Index Comparable Sales - Historical(1),(2) 33 2019 2020 2021 2022 2023 Comparison to pre-pandemic sales (
Slide 34: Financial Strength to Support Growth and Returns
FINANCIAL STRENGTH TO SUPPORT GROWTH AND RETURNS(1) 34 $2.61 ($1.49) $2.13 $1.51 $2.69 $3.44 '19 '20 '21 '22 '23 '24 Capital Allocation Detail $120 $(47) $146 $50 $67 $107 '19 '20 '21 '22 '23 '24 $99 $50 $67 $112 $152 $160 $51 $4 $6 $63 $46 $18 $61 $16 $42 $53 $53 44,545 48,974 '19 '20 '21 '22 '23 '
Slide 35: Appendix
APPENDIX
Slide 36: ($ in thousands) Fiscal Year 2019 2020 2021 2022 2023 4 Cash flow from
36 ($ in thousands) Fiscal Year 2019 2020 2021 2022 2023 2024 Cash flow from operations $ 218,761 $ 2,908 $ 213,006 $ 161,926 $ 218,401 $ 268,325 Capital expenditures / investments 99,265 50,329 66,943 112,464 151,565 160,364 Free cash flow(1) $ 119,496 $ (47,421) $ 146,063 $ 49,462 $ 66,836 $ 107,9
Slide 37: (1) EBITDA and Adjusted EBITDA may not add due to rounding. (2) A detailed
37 (1) EBITDA and Adjusted EBITDA may not add due to rounding. (2) A detailed breakdown of impairment of assets and lease termination expenses recorded can be found in the Selected Segment Information table in the 10-K and 10-Q. (3) Represents changes in the fair value of the deferred consideration
Slide 38: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS 38 ($ in thousands, except per share data) Fiscal Year Fiscal Quarter 2019 2020 2021 2022 2023 2024 1Q24 1Q25 Net income/(loss)(1) $127,293 $(277,10) $49,131 $43,123 $101,351 $156,783 $33,191 $32,941 Impairment of assets and lease termination expenses(2) 18,247 219,333 18,13