The Cheesecake Factory Incorporated · NASDAQ:CAKE
The Cheesecake Factory — Investor Presentation (May 2024)
26 slides from The Cheesecake Factory's investor presentation, May 8, 2024
Slide 1: Investor Presentation
INVESTOR PRESENTATION May 8, 2024
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT 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, includin
Slide 3: Investment Highlights
INVESTMENT HIGHLIGHTS • 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 Company’
Slide 4: The Cheesecake Factory - Global Footprint
THE CHEESECAKE FACTORY - GLOBAL FOOTPRINT Opportunity for 300 Domestic Locations Over Time & Continued International Expansion Beijing Toronto Shanghai (3) Kuwait (3) Chengdu Hangzhou Company-Owned: 216 Bahrain Macau (Including Toronto, Canada) (1) Qatar Hong Saudi (3) Kong Arabia Bangkok UAE (4) (6
Slide 5: Filling White Space for an On-Trend, Contemporary Italian Offering
FILLING WHITE SPACE FOR AN ON-TREND, CONTEMPORARY ITALIAN OFFERING • Potential for 200 domestic locations over time • 38 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 h
Slide 6: Fox Restaurant Concepts (FRC) Is an Incubation Engine Innovating Concepts for the Future
FOX RESTAURANT CONCEPTS (FRC) IS AN INCUBATION ENGINE INNOVATING CONCEPTS FOR THE FUTURE 31 Locations Growth Across the U.S. Potential Growth Boutique Brands 42 FRC Locations Across the U.S. 6
Slide 7: Accelerating Unit Growth Across Concepts
ACCELERATING UNIT GROWTH ACROSS CONCEPTS AS MANY AS 22 NEW UNITS PLANNED FOR 2024 New Restaurants Opened in 2024 Flower Child | Plano, TX North Italia | Houston, TX Culinary Dropout | Atlanta, GA North Italia | Dallas, TX Culinary Dropout | Birmingham, AL 6 The Cheesecake Factory locations 3 The Che
Slide 8: Slide 8
Slide 9: A Highly Differentiated Concept
A HIGHLY DIFFERENTIATED CONCEPT Extensive and Innovative Menu Menu 225+ Items Made Fresh, From Scratch High-energy Atmosphere Ambiance Exceptional Service and Hospitality Restaurant Best-in-Class Operational Execution Operations Experienced, Dedicated Managers Integrated Innovative, High-Quality Che
Slide 10: Integrated Bakery – The Cheesecake Magic
INTEGRATED BAKERY – THE “CHEESECAKE” MAGIC 2 60 Bakery Varieties of Industry-Leading Dessert Sales production cheesecakes & facilities desserts 16% FY 2019* 17% FY 2023* Enables creativity, quality control and supply chain efficiencies * Percent of total sales 10
Slide 11: Best-in-Class Operational Execution and Industry-Leading Retention
BEST-IN-CLASS OPERATIONAL EXECUTION AND INDUSTRY-LEADING RETENTION 11th CONSECUTIVE YEAR Recognized as a best workplace for Average Tenure by Position* Senior VP of Operations 34 years diversity, millennials and women Regional Vice Presidents 25 years Area Directors of Operations 20 years Area Kitch
Slide 12: Cult Status & Strong Consumer Engagement
CULT STATUS & STRONG CONSUMER ENGAGEMENT Millions of 5M fans 1M+ followers Viewers 350K 360K Reaching followers followers 5M+ users Note: Statistics as of April 24, 2024 12
Slide 13: Highest Unit Volumes With a Moderate Average Check
Highest Unit Volumes $12.2 ($ in millions) $9.5 $9.5 $7.6 $6.1 $5.5 $4.7 $4.1 $3.6 $3.4 $3.3 Yard House Maggiano's Texas BJ's Olive LongHorn Outback Carrabba's Chili's Bonefish Roadhouse Garden With a Moderate Average Check $35 $34 $32 $31 $28 $26 $25 $23 $22 $21 $19 Yard Bonefish Maggiano's Outback
Slide 14: Leveraging This Differentiation in the Off-Premise Channel
LEVERAGING THIS DIFFERENTIATION IN THE OFF-PREMISE CHANNEL Off-Premise Sales (% of Total Revenue) ~$2.7 million per restaurant (annualized based on 1Q24*) 43% 32% 25% 22% 22% 16% 9% Reflecting COVID-19 dining restrictions Upgraded Takeout Packaging *Annual unit volume equivalent based on total syste
Slide 15: Further Leaning in to Convenience
FURTHER LEANING IN TO CONVENIENCE I’m on my way Enter my parking spot Bring my order out 15
Slide 16: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY Guided by our core values we are committed to achieving our sustainability goals and creating a sustainable future for our staff, local communities and the environment we all share OBJECTIVES COMMITMENTS ACHIEVEMENTS $6.4M Donated to 15% Lower Energy 7.9M Pounds of fo
Slide 17: Financial Resiliency, Sales Leadership, Growth Opportunities
Confidential Financial Resiliency Sales Leadership Growth Opportunities 17
Slide 18: Diversifying Our Portfolio Across Experiential Concepts for Growth
DIVERSIFYING OUR PORTFOLIO ACROSS EXPERIENTIAL CONCEPTS FOR GROWTH Culinary forward. First class hospitality. Concepts like no other. Highly differentiated, well-positioned Diversified across segment, cuisine, price experiential concepts point and occasion
Slide 19: Driving Strong Sales Growth
DRIVING STRONG SALES GROWTH FY 2023 Q1 2024 COMP SALES COMP SALES AVERAGE WEEKLY SALES vs 2022 vs 1Q23 ~$237,900 Equates to $12.4M 3.0% (0.6)% Annualized AUV(1) ~$147,700 8% 3% Equates to $7.7M Annualized AUV (1) FY 2023 Q1 2024 AVERAGE WEEKLY SALES (2) AVERAGE WEEKLY SALES (2) vs 2022 vs 1Q23 ~$140
Slide 20: 2024 Underlying Key Assumptions
2024 UNDERLYING KEY ASSUMPTIONS (1) Consolidated Sales Approximately $3.6 Billion CCF AUVs Approximately $12.4 Million Net Income Margin Targeting ~4.25% at the stated sales level As many as 22 New Restaurant Openings • 3-4 The Cheesecake Factory locations New Unit Growth • 6-7 North Italia location
Slide 21: Quality Growth Opportunity
QUALITY GROWTH OPPORTUNITY Diversified Portfolio Attractive Growth Potential Value Creation Opportunities Differentiated experiential concepts Significant runway for future development Leveraging brand power, operational diversified across industry segment, price across portfolio of concepts to driv
Slide 22: History of Outperforming the Industry
HISTORY OF OUTPERFORMING THE INDUSTRY Comparable Sales - Historical 2-year Stack(1),(2) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020(1) 2021(2) 2022(2) 2023(2) 13.9% Industry Outperformance 10.5% 10.3% During Economic 6.5% Downturn 4.0% 4.2% 4.1% 3.8% 3.3% 2.6% 2.5% 3.3% 2.0% 0.9
Slide 23: Durable Business Over Time
DURABLE BUSINESS OVER TIME Adjusted Earnings/(Loss) Per Common Share Free Cash Flow(1) $2.83 $2.60 $2.51 $2.61 $2.69 $163 $158 $163 $2.37 $2.13 $128 $120 $112 $135 $146 $2.10$1.97 $107 $120 $1.88 $94 $100 $1.42 $1.64 $1.51 $85 $1.07 $67 $0.84 $50 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '
Slide 24: Appendix
APPENDIX
Slide 25: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS In addition to the results provided in accordance with the Generally Accepted Accounting Principles (“GAAP”) in this presentation, the Company is providing non-GAAP measurements which present adjusted diluted net income/(loss) per common share excluding the impact of certain
Slide 26: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS The Cheesecake Factory Incorporated Reconciliation of Non-GAAP Financial Measures ($ 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 $ 95,720
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