The Cheesecake Factory Incorporated · NASDAQ:CAKE
The Cheesecake Factory — Investor Presentation (May 2023)
28 slides from The Cheesecake Factory's investor presentation, May 10, 2023
Slide 1: Investor Presentation
Investor Presentation May 10, 2023
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 • 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 h
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 66 Total FRC Locations Across the U.S. 6
Slide 7: Accelerating Unit Growth Across Concepts
Accelerating Unit Growth Across Concepts As many as New Restaurants Opened in 2023 20 - 22 new units planned for 2023 Flower Child Tucson, AZ Doughbird Nashville, TN 2 The Cheesecake Factory locations 3 The Cheesecake Factory locations 14 New Restaurants 6 North Italia locations 13 New Restaurants 4
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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 • Enables creativity, quality control and supply chain efficiencies FY 2022* 17% FY 2019* 16% * 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 10th 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 25 years Area Directors of Operations 22 years Area
Slide 12: Cult Status & Strong Consumer Engagement
Cult Status & Strong Consumer Engagement 5M fans 1M+ Millions of followers Viewers 360K 295K Themed filters followers followers reaching 5M+ users Note: Statistics as of April 25, 2023 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 $12.1 ($ in millions) $34 $33 $29 $29 $27 $8.1 $24 $24 $7.0 $21 $21 $20 $6.0 $16 $5.1 $4.4 $3.9 $3.4 $3.2 $3.2 Maggian
Slide 14: Leveraging This Differentiation in the Off-Premise Channel
Leveraging This Differentiation in the Off-Premise Sales Off-Premise Channel (% of Total Revenue) ~$2.9 million per restaurant (annualized based on 1Q23*) 43% 32% 28% 16% 25% 23% 23% 23% 9% 12% 14% Reflecting COVID-19 dining restrictions Upgraded Takeout Packaging *Annual unit volume equivalent base
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 SOURCING ENVIRONMENT STAFF & DEI&B COMMUNITY 100% NET 93% Cage-free eggs, ZERO 10TH Year Of staff believe people are treated 700 3 years early Local non-profits Greenhouse fairly regardless of for b
Slide 17: Financial Resiliency, Sales Leadership, Growth Opportunities
Confidential Financial Resiliency Sales Leadership Growth Opportunities 17 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 1Q23 Comp Sales 1Q23 AWS vs. 1Q22 vs. 1Q19 +1.1% vs. 1Q22 vs. 1Q19 vs. 1Q22 vs. 1Q19 5.7% 14.9% 9% 30% 9% 27% 1Q23 Average Weekly Sales ~$239,700 ~$147,600 ~$152,200 Equates to $12.5M Annualized Equates to $7.7M Annualized Equates to $7.9M Annualized Aver
Slide 20: We Believe Stable, Agile Brands Will Be Best Positioned Moving Forward
We Believe Stable, Agile Brands Will Be Best Positioned Moving Forward Off-Premise Sales Have Stabilized Industry Rationalization: Market Share Opportunity At Elevated Levels Post-Pandemic Casual Dining1 As of May 2021, the NRA estimated that 15% 14% Sales by Channel4 (~90,000) of restaurants Indepe
Slide 21: 2023 Underlying Key Assumptions
2023 Underlying Key Assumptions(1) $3.55 Billion Total Sales Approximately $12.5 Million to $13 Million CCF AUVs Targeting 4% Net Income Margin at Stated Sales Target As many as 20 to 22 New Restaurant Openings Approximately $165 Million to $175 Million in Capex Q2 2023 quarterly dividend of $0.27 S
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 - $7.5
Slide 23: History of Outperforming the Industry
History of Outperforming the Industry Comparable Sales - Historical 2-year Stack 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 1 20212 20222 7.0% 7.4% 4.2% 4.1% Industry Outperformance 4.0% 2.0% 3.3% 2.6% 3.8% 2.5% 3.3% 1.0% 0.8% 0.9% 0.5% 1.4% During Economic Downturn 0.4% (0.3)%
Slide 24: Durable Business Over Time
Durable Business Over Time Adjusted Earnings/(Loss) Per Common Share Free Cash Flow¹ ($ 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 $1.51 $85 $1.07 $0.84 $50 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19
Slide 25: Appendix
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Slide 26: Non-GAAP Reconciliations
Non-GAAP Reconciliations In addition to the results provided in accordance with the Generally Accepted Accounting Principles (“GAAP”) in this presentation, the Company is providing non-GAAP measurements which present adjusted diluted net income/(loss) per common share excluding the impact of certain
Slide 27: Non-GAAP Reconciliation
Non-GAAP Reconciliation The Cheesecake Factory Incorporated Reconciliation of Non-GAAP Financial Measures ($ in thousands, except per share data) Fiscal Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Net income/(loss) available to common stockholder (GAAP) $ 52,293 $
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 2022 (1) Cash flow from operations $ 170 $ 200 $ 170 $ 197 $ 198 $ 213 $ 249 $ 248 $ 316 $ 239 $
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