The Cheesecake Factory Incorporated · NASDAQ:CAKE
The Cheesecake Factory — Investor Presentation (November 2022)
28 slides from The Cheesecake Factory's investor presentation, Nov 1, 2022
Slide 1: Investor Presentation
Investor Presentation November 1, 2022
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 • 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
Slide 4: The Cheesecake Factory - Global Footprint
The Cheesecake Factory - Global Footprint Opportunity for 300 Domestic Locations Over Time & Continued International Expansion Kuwait Toronto (3) Beijing Bahrain Shanghai (3) (1) Qatar Company-Owned: 210 Saudi (3) (Including Toronto, Canada) Arabia UAE (4) (6) Macau Hong Kong Monterrey Guadalajara M
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 • 32 locations in 13 states & Washington D.C. currently • All dishes handmade from scratch daily • Unique menu items tailored to local markets • Serving lunch, dinner, weekend brunch &
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 Potential Growth Boutique Brands 62 Total FRC Locations Across the U.S. 6
Slide 7: We Have Resumed Strong Unit Growth With Impressive Early Results
We Have Resumed Strong Unit Growth With Impressive Early Results 14 New Restaurants Opened in 2021 2022 New Restaurants Opened The Cheesecake Factory Washington, DC The Cheesecake Factory Huntsville, AL North Italia Birmingham, AL North Italia San Antonio, TX North Italia Miami, FL Flower Child Nort
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Slide 9: An Experiential Dining Category Leader
An Experiential Dining Category Leader Food Integrated Bakery Service & Ambiance Breadth of Menu & Innovation Innovative, High-Quality Best-in-Class Service, Hospitality 235 Items Made Fresh, From Scratch Cheesecakes and Other Baked and Operational Execution Integrated Bakery Dessert Items
Slide 10: Integrated Bakery – The “Cheesecake” Magic
Integrated Bakery – The “Cheesecake” Magic Industry-Leading Dessert Sales • Produces over 60 cheesecakes and other baked desserts Differentiated positioning has been a key sales driver during COVID-19 • Enables creativity, quality control and supply chain efficiencies FY19* FY20* 16% 21% FY21* 19% *
Slide 11: Best-in-Class Operational Execution and Industry-Leading Retention
Best-in-Class Operational Execution and Industry-Leading Retention 9th consecutive year Average Tenure by Position Also recognized as a best Senior VP of Operations 33 years workplace for diversity, millennials, and women Regional Vice Presidents 24 years Area Directors of Operations 20 years Area K
Slide 12: Cult Status & Strong Consumer Engagement
Cult Status & Strong Consumer Engagement 5M fans 1M+ Millions of followers Viewers 360K 140K Themed filters followers followers reaching 5M+ users Note: Statistics as of October 24, 2022 12
Slide 13: Broad Consumer Demographic and Appeal
Broad Consumer Demographic and Appeal Rated #1 Full-Service Chain for #1 Quality #2 Service #3 Food Quality Ambiance Casual Dining Highest Unit Volumes With a Moderate Average Check $11.1 ($ in millions) $34 $30 $29 $27 $8.1 $24 $24 $23 $6.4 $21 $20 $19 $5.1 $5.1 $16 $4.4 $3.8 $3.3 $3.2 $3.0 Maggian
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 3Q22*) 43% 43% 31% 16% 28% 27% 28% 25% 9% 12% 14% 23% Reflecting COVID-19 dining restrictions Upgraded Takeout Packaging *Annualized unit volume equival
Slide 15: Further Leaning in to Convenience
Further Leaning in to Convenience 15
Slide 16: CSR – Contributing to the Well-Being of Our Staff, Local Communities and the Environment
CSR – Contributing to the Well-Being of Our Staff, Local Communities and the Environment We All Share Please refer to the 2021 Cheesecake Factory Corporate Social Responsibility Report. 16
Slide 17: Sales Leadership, Growth Opportunities, Financial Resiliency
Sales Leadership Growth Opportunities Financial Resiliency 17
Slide 18: Diversifying Our Portfolio Across Experiential For Growth
Diversifying Our Portfolio Across Experiential For Growth Culinary forward. First class hospitality. Concepts like no other. Diversify Across Experiential 18
Slide 19: Driving Strong Sales Growth Across Portfolio
Driving Strong Sales Growth Across Portfolio 3Q22 Comp Sales 3Q22 AWS vs. 3Q21 vs. 3Q19 +1.1% vs. 3Q21 vs. 3Q19 vs. 3Q21 vs. 3Q19 1.1% 9.5% 10% 18% 7% 19% 3Q22 Average Weekly Sales ~$222,900 ~$137,000 ~$126,400 Equates to $11.6M Annualized Equates to $7.1M Annualized Equates to $6.7M Annualized Aver
Slide 20: We Believe Stable, Agile Brands Will Be Best Equipped to Weather Volatility
We Believe Stable, Agile Brands Will Be Best Equipped to Weather Volatility and Thrive Post-COVID Industry Rationalization: Market Share Opportunity Increased Consumer Emphasis On Off-Premise Casual Dining1 Sustained Off-Premise Sales Strength4 As of May 2021, the (AUV $ millions) NRA estimated that
Slide 21: 2022 Underlying Key Assumptions
2022 Underlying Key Assumptions(1) Approximately $3.33 Billion Total Sales(2) Approximately $12 Million CCF AUV(2) Targeting to exit 2022 at 2019 CCF RLM(3) 13 New Restaurant Openings Approximately $130 Million in Capex Q4 2022 quarterly dividend of $0.27 Share repurchase program (1) Takes into acco
Slide 22: Diversified Growth Engines Expected to Drive 7% Unit Growth Annually
Diversified Growth Engines Expected to Drive 7% Unit Growth Annually Anticipated Unit ² ² Diversified multi- Growth Roadmap¹ concept across segment, Target Size (productive sq. ft.) 7,000 – 10,000 6,000 - 7,000 3,500 – 15,000 price point, occasion, Targeted Average Unit Volume $11M - $12M $7M - $7.5
Slide 23: History of Outperforming the Industry
History of Outperforming the Industry Comparable Sales - Historical 2-year Stack 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020* 2021** Industry Outperformance 4.0% 4.2% 4.1% 3.8% 3.3% 2.6% 2.5% 3.3% 2.0% During Economic Downturn 1.0% 0.8% 0.4% 0.9% 0.5% 1.4% (0.3)% (0.9)% (0.4)% (
Slide 24: Durable Business Over Time
Durable Business Over Time Adjusted Earnings/(Loss) Per Share Free Cash Flow¹ ($ in millions) $163 $158 $163 $2.83 $146 $2.60 $2.51 $2.61 $128 $135 $2.37 $2.13 $120 $112 $120 $2.10 $1.97 $107 $1.88 $94 $100 $1.42 $1.64 $85 $1.07 $0.84 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 ‘20 '20 '21 '08 '
Slide 25: Appendix
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Slide 26: Non-GAAP Reconciliations
Non-GAAP Reconciliations In addition to the results provided in accordance with the Generally Accepted Accounting Principles (“GAAP”) in this presentation, the Company is providing non-GAAP measurements which present adjusted diluted net income/(loss) per share excluding the impact of certain items
Slide 27: Non-GAAP Reconciliation
Non-GAAP Reconciliation The Cheesecake Factory Incorporated Reconciliation of Non-GAAP Financial Measures ($ in thousands, except per share data) Fiscal Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Net income/(loss) (GAAP) $ 52,293 $ 42,833 $ 81,713 $ 95,720 $ 98,423 $
Slide 28: Non-GAAP Reconciliation
Non-GAAP Reconciliation The Cheesecake Factory Incorporated Reconciliation of Non-GAAP Financial Measures ($ in millions) Fiscal Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Cash flow from operations (1) $ 170 $ 200 $ 170 $ 197 $ 198 $ 213 $ 249 $ 248 $ 316 $ 239 $ 291
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