The Cheesecake Factory Incorporated · NASDAQ:CAKE
The Cheesecake Factory — Cheesecake Factory — Investor Presentation (February 2023)
28 slides from The Cheesecake Factory's investor presentation, Feb 22, 2023
Slide 1: Investor Presentation February 22, 2023
Investor Presentation February 22, 2023
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: 210 (Including Toronto, Canada) Toronto International – Licensed: 30 Mexico City (5) Guadalajara Saudi Arabia (4) UAE (6) Kuwait (3) Qatar (3) Bahrain (1) Shanghai (3) Hong Kong Beijing Monterre
Slide 5: North Italia: Filling White Space for Contemporary Italian Offering
Filling White Space for an On-Trend, Contemporary Italian Offering 5 • Potential for 200 domestic locations over time • 33 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 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 65 Total FRC Locations Across the U.S.
Slide 7: Accelerating Unit Growth Across Concepts
Accelerating Unit Growth Across Concepts 14 New Restaurants Opened in 2021 As many as 20 - 22 new units planned for 2023 13 New Restaurants Opened in 2022 7 The Culinary Dropout Flower Child Flower Child North Italia North Italia North Italia North Italia North Italia North Italia Blanco Blanco Blan
Slide 8: Slide 8
Slide 9: An Experiential Dining Category Leader
An Experiential Dining Category Leader Food Integrated Bakery Service & Ambiance Breadth of Menu & Innovation 235 Items Made Fresh, From Scratch Integrated Bakery Best-in-Class Service, Hospitality and Operational Execution Innovative, High-Quality Cheesecakes and Other Baked Dessert Items
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 FY 2019* 16% 10 Industry-Leading Dessert Sales * Percent of total sales FY 2022* 17%
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 25 years 22 years 21 years 12 years 11 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
Themed filters reaching 5M+ users Cult Status & Strong Consumer Engagement 1M+ followers 5M fans 360K followers Millions of Viewers 12 Note: Statistics as of February 15, 2023 245K followers
Slide 13: Broad Consumer Demographic and Appeal
Broad Consumer Demographic and Appeal Highest Unit Volumes With a Moderate Average Check ($ in millions) Source: Latest SEC 10-K filings and company presentations; Average check for The Cheesecake Factory defined as on-premise average check. 13 $12.1 $8.1 $6.4 $6.0 $5.1 $4.4 $3.8 $3.3 $3.2 $3.0 Magg
Slide 14: Leveraging This Differentiation in the Off-Premise Channel
9% 12% 14% 16% 43% 32% 28% 25% 23% 23% Off-Premise Sales (% of Total Revenue) Leveraging This Differentiation in the Off-Premise Channel Upgraded Takeout Packaging *Average Unit Volumes annualized based on 4Q22 average weekly sales (AWS) and 53 weeks in FY 2022. 14 ~$2.8 million per restaurant (annu
Slide 15: Further Leaning in to Convenience
Further Leaning in to Convenience 15
Slide 16: 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 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: Diversifying Our Portfolio Across Experiential For Growth
Culinary forward. First class hospitality. Concepts like no other. Diversify Across Experiential Diversifying Our Portfolio Across Experiential For Growth 18
Slide 19: Driving Strong Sales Growth Across Portfolio
Driving Strong Sales Growth Across Portfolio +1.1% 4Q22 Comp Sales* ~$229,500 Equates to $12.2M Annualized Average Unit Volume 4Q22 Average Weekly Sales* 4Q22 AWS* Note: Average Unit Volumes annualized based on 4Q22 average weekly sales (AWS) and 53 weeks in FY 2022. *4Q22 Comp Sales and AWS on a 14
Slide 20: Stable, Agile Brands Best Equipped to Weather Volatility
“Large chains and well-funded restaurants have the resources to ride out a protracted shutdown, but the independent restaurants that make up two-thirds of the American dining landscape – noodle shops, diners and that charming urban restaurant that always had a line out the door – may not survive.” -
Slide 21: 2023 Underlying Key Assumptions
2023 Underlying Key Assumptions(1) 21 (1) Assumes no material operating or consumer disruptions $3.5 Billion to $3.6 Billion Total Sales Targeting 4% Net Income Margin at mid-point of Total Sales Range As many as 20 to 22 New Restaurant Openings Nearly $13 Million CCF AUVs Approximately $165 Million
Slide 22: 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 23: 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% 7.0% (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)% 7.4% History of Outperforming the Industry 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 20201 20212 20222 Knapp-
Slide 24: Capital Allocation Detail
24 $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 $1.52 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 Capital Allocation Detail $85 $163 $128 $120 $112 $107 $135 $94 $158 $100 $163 $120 $(47) $146 $50 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '1
Slide 25: Appendix
Appendix
Slide 26: 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 27: Non-GAAP Reconciliation
Non-GAAP Reconciliation (1) A detailed breakdown of impairment of assets and lease termination expenses recorded in the fourteen and fifty-three weeks ended January 3, 2023 and thirteen and fifty-two weeks ended December 28, 2021 can be found in the Selected Segment Information table. (2) Represents
Slide 28: 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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