The Cheesecake Factory Incorporated · NASDAQ:CAKE
The Cheesecake Factory — Cheesecake Factory — Merger or Acquisition (July 2019)
14 slides from The Cheesecake Factory's merger presentation, Jul 31, 2019
Slide 1: Forward-looking statements
This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as codified in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, withou
Slide 2: An Experiential Dining Category Leader
An Experiential Dining Category Leader 3 Culinary forward. First class hospitality. Concepts like no other.
Slide 3: Transactions Summary: North Italia & FRC Acquisitions
The Cheesecake Factory Incorporated has entered into definitive agreements to acquire Fox Restaurant Concepts (“FRC”), including Flower Child, and the remaining interest in North Italia, reinforcing its leadership position in experiential dining Positions the Company to drive long-term profitable gr
Slide 4: Strong Strategic Rationale
Strong Strategic Rationale 5 North Italia & Fox Restaurant Concepts Aligned cultures & philosophies Differentiated & authentic concepts deliver unique guest experiences Meaningful accretive unit growth potential Diversification Acquisitions expected to accelerate growth and are aligned with our long
Slide 5: Unique Transaction Structure Expected to Accelerate Growth Potential
Attractive valuation for concepts with meaningful growth potential and accretive unit economics FRC will operate as a wholly-owned subsidiary, and continue to be led by Sam Fox, Founder and Chief Executive Officer of FRC Additional value derived from the depth and breadth of the FRC team, which has
Slide 6: North Italia: Modern Lens on Italian Cooking in Upscale Casual
Turning a Modern Lens on Italian Cooking in the Upscale Casual Segment 7 All dishes handmade from scratch daily Team of passionate and dedicated people who deliver the perfect handcrafted experience Serving lunch, dinner, weekend brunch & weekday happy hour 30%+ alcohol mix Strong private dining bus
Slide 7: Significant Accretive Growth Opportunity
Significant Accretive Growth Opportunity Potential for 200 Domestic Locations Over Time 8 Run-Rate Revenues ~$150 million FY18 Comparable Sales +5% # of Restaurants 20 Average Check $25 - $30 Preopening $/unit ~$0.8 - $0.9 million Maintenance capex (% of Total North Sales) ~1% Note: Run-rate revenue
Slide 8: FRC Will Serve as an Incubation Engine
Fox Restaurant Concepts Will Serve as an Incubation Engine Innovating Concepts of the Future 9
Slide 9: FRC at a Glance
Run-Rate Revenues ~$250 million # of Restaurants 45 Square Footage 3,500 – 15,000 Geographies 7 states & Washington D.C. Segments Fast Casual, Upscale Casual & Eatertainment Preopening % of AUV 12% Maintenance Capex (% of Total FRC Sales) 1% 10 Fox Restaurant Concepts at a Glance Note: Run-rate reve
Slide 10: Attractive Unit Economics
11 New Unit Targets Sales ~$7 million ~$1,000/sq. ft. Restaurant-Level Margin % ~18% - 20% ~16% - 18% Cash Capex Investment $3 - $3.5 million $500/sq. ft. Cash-on-Cash Return 35%+ 25% - 30% Sales/Investment Ratio 2:1 2:1 Attractive Unit Economics Note: Steady-state restaurant-level margin typically
Slide 11: Anticipated Unit Growth Roadmap
The Future CAKE Multi-concept with segment, price point, occasion, real estate and labor model diversification Leveraging brand power, operational excellence, scale, supply chain and real estate development expertise Target Size (sq. ft.) 7,500 – 10,000 5,000 - 6,500 3,500 – 15,000 Average Unit Volu
Slide 12: Meaningful Value Creation Opportunities
Combined company is expected to be an experiential dining category leader with nearly $3 billion in pro forma 2020 revenues and anticipated 8%-plus revenue growth Acquisitions expected to be approximately neutral to earnings per share, excluding integration expenses, in fiscal 2020 and accretive the
Slide 13: North Italia & FRC Acquisitions
North Italia & Fox Restaurant Concepts Acquisitions July 31, 2019
Slide 14: North Italia & FRC Acquisitions, July 31, 2019
(eesecake North Italia & Fox Restaurant Concepts Acquisitions July 31, 2019
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