The Cheesecake Factory Incorporated · NASDAQ:CAKE
The Cheesecake Factory — Cheesecake Factory — Investor Presentation (February 2024)
26 slides from The Cheesecake Factory's investor presentation, Feb 21, 2024
Slide 1: Investor Presentation, February 21, 2024
INVESTOR: 2° 35 February 21, 2024
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
INVESTMENT HIGHLIGHTS 3 • 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 • Leveraging the Compan
Slide 4: The Cheesecake Factory - Global Footprint
THE CHEESECAKE FACTORY - GLOBAL FOOTPRINT 4 High quality, high profile locations worldwide Company-Owned: 216 (Including Toronto, Canada) Toronto International – Licensed: 33 Mexico City (5) Guadalajara Saudi Arabia (4) UAE (6) Kuwait (3) Qatar (3) Bahrain (1) Monterrey Opportunity for 300 Domestic
Slide 5: North Italia: Filling White Space for Contemporary Italian Offering
5 FILLING WHITE SPACE FOR AN ON-TREND, CONTEMPORARY ITALIAN OFFERING • Potential for 200 domestic locations over time • 37 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
Slide 6: Fox Restaurant Concepts Is an Incubation Engine
FOX RESTAURANT CONCEPTS (FRC) IS AN INCUBATION ENGINE INNOVATING CONCEPTS FOR THE FUTURE 6 Growth Boutique Brands 41 FRC Locations Across the U.S. Potential Growth 32 Locations Across the U.S.
Slide 7: Accelerating Unit Growth Across Concepts
13 New Restaurants Opened in 2022 3 The Cheesecake Factory locations 4 North Italia locations 3 Flower Child locations 3 FRC locations 16 New Restaurants Opened in 2023 6 The Cheesecake Factory locations 3 North Italia locations 1 Flower Child location 6 FRC locations ACCELERATING UNIT GROWTH ACROSS
Slide 8: The Cheesecake Factory
The k
Slide 9: A Highly Differentiated Concept
9 Extensive and Innovative Menu Menu 225+ Items Made Fresh, From Scratch Innovative, High-Quality Cheesecakes and Other Baked Dessert Items Integrated Bakery Best-in-Class Operational Execution Experienced, Dedicated Managers Restaurant Operations A HIGHLY DIFFERENTIATED CONCEPT High-energy Atmosphe
Slide 10: Integrated Bakery – The Cheesecake Magic
10 INTEGRATED BAKERY – THE “CHEESECAKE” MAGIC Industry-Leading Dessert Sales Enables creativity, quality control and supply chain efficiencies 60 Varieties of cheesecakes & 2 desserts Bakery production facilities * Percent of total sales 17% FY 2023* 1 FY 2019* 6%
Slide 11: Best-in-Class Operational Execution and Industry-Leading Retention
BEST-IN-CLASS OPERATIONAL EXECUTION AND INDUSTRY-LEADING RETENTION 11 “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** 10th CONSECUTIVE YEAR
Slide 12: Cult Status & Strong Consumer Engagement
CULT STATUS & STRONG CONSUMER ENGAGEMENT 12 Reaching 5M+ users 5M fans 1M+ followers 350K followers Millions of Viewers Note: Statistics as of February 6, 2024 360K followers
Slide 13: Moderate Average Check, Highest Unit Volumes
$12.1 $9.5 $7.6 $6.0 $5.5 $4.7 $3.9 $3.4 $3.4 $3.2 Maggiano's Texas Roadhouse BJ's Olive Garden LongHorn Outback Carrabba's Chili's Bonefish With a Moderate Average Check Highest Unit Volumes ($ in millions) Source: Latest SEC 10-K filings and company presentations Average check for The Cheesecake F
Slide 14: Leveraging Differentiation in the Off-Premise Channel
LEVERAGING THIS DIFFERENTIATION IN THE OFF-PREMISE CHANNEL 14 *Annual unit volume equivalent based on total system restaurant average weekly sales 9% 16% 43% 32% 25% 23% 22% 21% 22% Off-Premise Sales (% of Total Revenue) ~$2.7 million per restaurant (annualized based on 4Q23*) Reflecting COVID-19 di
Slide 15: Further Leaning In to Convenience
FURTHER LEANING IN TO CONVENIENCE 15
Slide 16: CSR – Contributing to Staff, Communities and Environment
>$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 COMM
Slide 17: Financial Resiliency, Sales Leadership, Growth Opportunities
Confidential 17 Financial Resiliency Sales Leadership Growth Opportunities
Slide 18: Diversifying Our Portfolio Across Experiential Concepts for Growth
Culinary forward. First class hospitality. Concepts like no other. DIVERSIFYING OUR PORTFOLIO ACROSS EXPERIENTIAL CONCEPTS FOR GROWTH Diversified across segment, cuisine, price point and occasion Highly differentiated, well-positioned experiential concepts
Slide 19: Driving Strong Sales Growth
19 DRIVING STRONG SALES GROWTH vs 2022 vs 2019 3% 24% 8% 31% FY 2023 COMP SALES 3.0% 13.9% vs 4Q22 vs 4Q19 0% 26% ~$236,600 Equates to $12.3M Annualized AUV(1) AVERAGE WEEKLY SALES ~$152,100 Equates to $7.9M Annualized AUV(1) ~$138,500 Equates to $7.2M Annualized AUV(1) 7% 34% Q4 2023 COMP SALES 2.5
Slide 20: 2024 Underlying Key Assumptions
2024 UNDERLYING KEY ASSUMPTIONS(1) 20 (1) Assumes no material operating or consumer disruptions (2) 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 Consolidated Sales Approximately $3.6 B
Slide 21: Quality Growth Opportunity
QUALITY GROWTH OPPORTUNITY 21 New Unit Growth Targets(1) Size(2) Sales per Sq Ft(2) 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 ~15% -20% 3,500 -15,000 ~$1,100 ~10% -15% Diversified Portfolio Differentiated experiential c
Slide 22: History of Outperforming the Industry
HISTORY OF OUTPERFORMING THE INDUSTRY (4.2)% (6.8)% (0.3)% 4.0% 4.2% 3.3% 2.6% 4.1% 3.8% 0.4% 0.9% 2.5% (27.4)% 3.3% 10.5% 13.9% (4.3)% (8.7)% (6.1)% 1.0% 2.0% (0.9)% (1.6)% 0.8% (0.4)% (2.2)% 0.5% 1.4% (24.0)% (0.9)% 6.5% 10.3% 2008 Knapp-Track Index Comparable Sales - Historical 2-year Stack(1),(2
Slide 23: Durable Business Over Time
DURABLE BUSINESS OVER TIME 23 Note: 2020 results reflect the impact of the pandemic and the issuance of 200,000 shares of Series A Convertible Preferred Stock. Please refer to the appendix for GAAP to Non-GAAP reconciliations and to SEC filings for an explanation regarding an accounting reclassifica
Slide 24: Appendix
APPENDIX
Slide 25: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS 25 In addition to the results provided in accordance with the Generally Accepted Accounting Principles (“GAAP”) in this presentation, the Company is providing non-GAAP measurements which present adjusted diluted net income/(loss) per common share excluding the impact of cert
Slide 26: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS 26 The Cheesecake Factory Incorporated Reconciliation of Non-GAAP Financial Measures ($ in thousands, except per share data) Fiscal Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Net income/(loss) (GAAP) $ 52,293 $ 42,833 $ 81,713 $ 95,7
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