UNITED STATES
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Washington, D.C. 20549
FORM
CURRENT REPORT
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The following information under Item 2.02 of Form 8-K, “Results of Operations and Financial Condition” and Item 7.01 of Form 8-K, “Regulation FD Disclosure” is intended to be furnished. This information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date of this report, regardless of any general incorporation language in the filing.
| ITEM 2.02 | RESULTS OF OPERATIONS AND FINANCIAL CONDITION |
In a press release dated February 16, 2022, a copy of which is furnished as Exhibit 99.1 to this report, The Cheesecake Factory Incorporated (the “Company”) reported financial results for the fourth quarter of fiscal 2021, which ended on December 28, 2021.
| ITEM 7.01 | REGULATION FD DISCLOSURE |
On February 16, 2022, the Company posted an updated Investor Presentation on the Company’s Investor Relations website at investors.thecheesecakefactory.com. A copy of the presentation is furnished as Exhibit 99.2 hereto and is incorporated by reference herein.
| ITEM 9.01 | FINANCIAL STATEMENTS AND EXHIBITS |
| (d) | Exhibits |
| 99.1 | Press release dated February 16, 2022 entitled “The Cheesecake Factory Reports Results for Fourth Quarter of Fiscal 2021 and Provides Business Update.” | |
| 99.2 | The Cheesecake Factory Investor Presentation dated February 16, 2022 | |
| 104.1 | Cover Page Interactive Data File (embedded within the inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: February 16, 2022 | THE CHEESECAKE FACTORY INCORPORATED | |
| By: | /s/ Matthew E. Clark | |
| Matthew E. Clark | ||
| Executive Vice President and Chief Financial Officer | ||
Exhibit 99.1
PRESS RELEASE
| FOR IMMEDIATE RELEASE | Contact: Etienne Marcus |
| (818) 871-3000 | |
| [email protected] |
THE CHEESECAKE FACTORY REPORTS RESULTS FOR
FOURTH QUARTER OF FISCAL 2021 AND PROVIDES BUSINESS UPDATE
Fourth quarter Consolidated Revenues Up 40% to a Record $776.7 Million
CALABASAS HILLS, Calif., – February 16, 2022 – The Cheesecake Factory Incorporated (NASDAQ: CAKE) today reported financial results for the fourth quarter of fiscal 2021, which ended on December 28, 2021.
Total revenues were $776.7
million in the fourth quarter of fiscal 2021 compared to
$554.6 million in the fourth quarter of fiscal 2020. Net income available to common stockholders and diluted net income per common share
were $2.1 million and $0.04, respectively, in the fourth quarter of fiscal 2021.
The company recorded $29.1 million related to pre-tax charges of asset impairments and FRC acquisition-related items, as well as a reserve for uncertain tax positions. Excluding the after-tax impact of these items, adjusted net income and adjusted net income per share for the fourth quarter of fiscal 2021 were $24.9 million and $0.49, respectively. Please see the Company’s reconciliation of non-GAAP financial measures at the end of this press release.
Comparable restaurant sales at The Cheesecake Factory restaurants increased 33.8% year-over-year in the fourth quarter of fiscal 2021. Relative to the fourth quarter of fiscal 2019, comparable restaurant sales at The Cheesecake Factory restaurants increased 7.7%.
As of today, indoor dining restrictions have been lifted for nearly all of the company’s restaurants across all its concepts. Fiscal 2022 first quarter-to-date through February 15th comparable sales for The Cheesecake Factory restaurants increased approximately 24.3% year-over-year, supported by approximately 30% off-premise sales mix.
“We posted another quarter of solid sales performance across our brands, continuing to outperform the broader casual dining industry and recording record revenues despite the surge in COVID-19 cases from the Omicron variant towards the end of the year,” said David Overton, Chairman and Chief Executive Officer. “Specifically, fourth quarter comparable sales at The Cheesecake Factory were running at 10.6% going into the third week of December relative to fiscal 2019. We believe our operating results would have been in line with expectations but for the softer sales trend during the last two weeks of the quarter which coincided with the Omicron surge.”
26901 Malibu Hills Road, Calabasas Hills, CA 91301 · Telephone (818) 871-3000 · Fax (818) 871-3100
Overton continued, “I remain proud of our teams for how they have navigated through all of the challenges this past year while continuing to deliver delicious, memorable experiences for our guests. As we look ahead, I am confident that our best in-class operators will continue to effectively manage through this volatile operating environment, and with our development pipeline in place and solid comparable sales trends across our brands, we are well-positioned to continue to take market share.”
Development
During the fourth quarter of fiscal 2021, four new restaurants opened, including The Cheesecake Factory in Huntsville, AL, North Italia in Orlando and a Blanco and a Culinary Dropout in Denver, meeting the Company’s development objective of opening 14 new restaurants across its concepts during fiscal 2021.
In addition, internationally a third The Cheesecake Factory opened in Shanghai under a licensing agreement during the fourth quarter of fiscal 2021.
Balance Sheet & Cash Flow
As of December 28, 2021, the Company had total available liquidity of $430 million, including a cash balance of $190 million and availability on its revolving credit facility of $240 million. Total principal amount of debt outstanding was $475 million, including $345 million in principal amount of 0.375% convertible senior notes due 2026 and $130 million in principal amount drawn on the Company’s revolving credit facility.
Conference Call and Webcast
The Company will hold a conference call to review its results for the fourth quarter of fiscal 2021 today at 2:00 p.m. Pacific Time. The conference call will be webcast live on the Company’s website at investors.thecheesecakefactory.com and a replay of the webcast will be available through March 18, 2022.
About The Cheesecake Factory Incorporated
The Cheesecake Factory Incorporated is a leader in experiential dining. We are culinary forward and relentlessly focused on hospitality. Delicious, memorable experiences created by passionate people – this defines who we are and where we are going. We currently own and operate 306 restaurants throughout the United States and Canada under brands including The Cheesecake Factory®, North Italia® and a collection within our Fox Restaurant Concepts business. Internationally, 29 The Cheesecake Factory® restaurants operate under licensing agreements. Our bakery division operates two facilities that produce quality cheesecakes and other baked products for our restaurants, international licensees and third-party bakery customers. In 2021, we were named to the FORTUNE Magazine “100 Best Companies to Work For®” list for the eighth consecutive year. To learn more, visit www.thecheesecakefactory.com, www.northitalia.com and www.foxrc.com.
From FORTUNE. ©2021 Fortune Media IP Limited. FORTUNE 100 Best Companies to Work For is a trademark of Fortune Media IP Limited and is used under license. FORTUNE and Fortune Media IP Limited are not affiliated with, and do not endorse products or services of, Licensee.
26901 Malibu Hills Road, Calabasas Hills, CA 91301 · Telephone (818) 871-3000 · Fax (818) 871-3100
Safe Harbor Statement
This press release 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, without limitation, statements regarding [continued outperformance of the broader casual dining industry, managing through the volatile operating environment, development pipeline, solid comparable sales trends across brands and market share]. Such forward-looking statements include all other statements that are not historical facts, as well as statements that are preceded by, followed by or that include words or phrases such as “believe,” “plan,” “will likely result,” “expect,” “intend,” “will continue,” “is anticipated,” “estimate,” “project,” “may,” “could,” “would,” “should” and similar expressions. These statements are based on current expectations and involve risks and uncertainties which may cause results to differ materially from those set forth in such statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and that undue reliance should not be placed on such statements. These forward-looking statements may be affected by various factors including: the rapidly evolving nature of the COVID-19 outbreak and related containment measures, including the potential for a complete shutdown of the Company’s restaurants, international licensee restaurants and the Company’s bakery operations; supply chain disruptions; demonstrations, political unrest, potential damage to or closure of the Company’s restaurants and potential reputational damage to the Company or any of its brands; economic, public health and political conditions that impact consumer confidence and spending, including the impact of COVID-19 and other health epidemics or pandemics on the global economy; acceptance and success of The Cheesecake Factory in domestic and international markets; acceptance and success of North Italia and the Fox Restaurant Concepts restaurants; the risks of doing business abroad through Company-owned restaurants and/or licensees; foreign exchange rates, tariffs and cross border taxation; changes in unemployment rates; changes in laws impacting the Company’s business, including laws and regulations related to COVID-19 impacting restaurant operations and customer access to off- and on-premise dining; increases in minimum wages and benefit costs, including the cost of group medical insurance; the economic health of the Company’s landlords and other tenants in retail centers in which its restaurants are located, and the Company’s ability to successfully manage its lease arrangements with landlords; unanticipated costs that may arise in connection with a return to normal course of business, including potential negative impacts from furlough actions; the economic health of suppliers, licensees, vendors and other third parties providing goods or services to the Company; the timing of our new unit development; compliance with debt covenants; strategic capital allocation decisions including any share repurchases or dividends; the ability to achieve projected financial results; economic and political conditions that impact consumer confidence and spending; the resolution of uncertain tax positions with the Internal Revenue Service and the impact of tax reform legislation; adverse weather conditions in regions in which the Company’s restaurants are located; factors that are under the control of government agencies, landlords and other third parties; the risks, costs and uncertainties associated with opening new restaurants; and other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission (“SEC”). Forward-looking statements speak only as of the dates on which they are made and the Company undertakes no obligation to publicly update or revise any forward-looking statements or to make any other forward-looking statements, whether as a result of new information, future events or otherwise, unless required to do so by law. Investors are referred to the full discussion of risks and uncertainties associated with forward-looking statements and the discussion of risk factors contained in the Company’s latest Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K as filed with the SEC, which are available at www.sec.gov.
26901 Malibu Hills Road, Calabasas Hills, CA 91301 · Telephone (818) 871-3000 · Fax (818) 871-3100
The Cheesecake Factory Incorporated
Condensed Consolidated Financial Statements
(unaudited; in thousands, except per share and statistical data)
| 13 Weeks Ended | 13 Weeks Ended | 52 Weeks Ended | 52 Weeks Ended | |||||||||||||||||||||||||||||
| Consolidated Statements of Income | December 28, 2021 | December 29, 2020 | December 28, 2021 | December 29, 2020 | ||||||||||||||||||||||||||||
| Amount | Percent
of Revenues | Amount | Percent
of Revenues | Amount | Percent
of Revenues | Amount | Percent
of Revenues | |||||||||||||||||||||||||
| Revenues | $ | 776,693 | 100.0 | % | $ | 554,552 | 100.0 | % | $ | 2,927,540 | 100.0 | % | $ | 1,983,225 | 100.0 | % | ||||||||||||||||
| Costs and expenses: | ||||||||||||||||||||||||||||||||
| Cost of sales | 178,896 | 23.0 | % | 127,195 | 22.9 | % | 653,133 | 22.3 | % | 458,332 | 23.1 | % | ||||||||||||||||||||
| Labor expenses | 288,127 | 37.1 | % | 218,126 | 39.3 | % | 1,072,628 | 36.6 | % | 778,586 | 39.3 | % | ||||||||||||||||||||
| Other operating costs and expenses | 209,793 | 27.0 | % | 167,329 | 30.2 | % | 792,311 | 27.0 | % | 616,069 | 31.1 | % | ||||||||||||||||||||
| General and administrative expenses | 47,679 | 6.1 | % | 40,177 | 7.3 | % | 186,136 | 6.4 | % | 157,644 | 7.9 | % | ||||||||||||||||||||
| Depreciation and amortization expenses | 22,849 | 3.0 | % | 22,612 | 4.1 | % | 89,654 | 3.1 | % | 91,415 | 4.6 | % | ||||||||||||||||||||
| Impairment of assets and lease termination expenses | 17,545 | 2.3 | % | 14,602 | 2.6 | % | 18,139 | 0.6 | % | 219,333 | 11.1 | % | ||||||||||||||||||||
| Acquisition-related costs | - | 0.0 | % | 356 | 0.1 | % | - | 0.0 | % | 2,699 | 0.1 | % | ||||||||||||||||||||
| Acquisition-related contingent consideration, compensation and amortization expenses/(benefit) | 6,918 | 0.9 | % | 120 | 0.0 | % | 19,510 | 0.7 | % | (3,872 | ) | (0.2 | )% | |||||||||||||||||||
| Preopening costs | 3,907 | 0.5 | % | 2,846 | 0.5 | % | 13,711 | 0.5 | % | 10,456 | 0.5 | % | ||||||||||||||||||||
| Total costs and expenses | 775,714 | 99.9 | % | 593,363 | 107.0 | % | 2,845,222 | 97.2 | % | 2,330,662 | 117.5 | % | ||||||||||||||||||||
| Income/(loss) from operations | 979 | 0.1 | % | (38,811 | ) | (7.0 | )% | 82,318 | 2.8 | % | (347,437 | ) | (17.5 | )% | ||||||||||||||||||
| Interest and other expense, net | (1,504 | ) | (0.2 | )% | (1,580 | ) | (0.3 | )% | (10,698 | ) | (0.4 | )% | (8,599 | ) | (0.5 | )% | ||||||||||||||||
| Income/(loss) before income taxes | (525 | ) | (0.1 | )% | (40,391 | ) | (7.3 | )% | 71,620 | 2.4 | % | (356,036 | ) | (18.0 | )% | |||||||||||||||||
| Income tax benefit | (2,635 | ) | (0.3 | )% | (8,074 | ) | (1.5 | )% | (753 | ) | (0.1 | )% | (102,671 | ) | (5.2 | )% | ||||||||||||||||
| Net income/(loss) | 2,110 | 0.2 | % | (32,317 | ) | (5.8 | )% | 72,373 | 2.5 | % | (253,365 | ) | (12.8 | )% | ||||||||||||||||||
| Dividends on Series A preferred stock (1) | - | 0.0 | % | (4,953 | ) | (0.9 | )% | (18,661 | ) | (0.6 | )% | (13,485 | ) | (0.7 | )% | |||||||||||||||||
| Direct and incremental Series A preferred stock issuance cost | - | 0.0 | % | - | 0.0 | % | - | 0.0 | % | (10,257 | ) | (0.5 | )% | |||||||||||||||||||
| Undistributed earnings allocated to Series A preferred stock | - | 0.0 | % | - | 0.0 | % | (4,581 | ) | (0.2 | )% | - | 0.0 | % | |||||||||||||||||||
| Net income/(loss) available to common stockholders | $ | 2,110 | 0.2 | % | $ | (37,270 | ) | (6.7 | )% | $ | 49,131 | 1.7 | % | $ | (277,107 | ) | (14.0 | )% | ||||||||||||||
| Basic net income/(loss) per common share | $ | 0.04 | $ | (0.85 | ) | $ | 1.03 | $ | (6.32 | ) | ||||||||||||||||||||||
| Basic weighted average shares outstanding | 50,243 | 43,928 | 47,529 | 43,869 | ||||||||||||||||||||||||||||
| Diluted net income/(loss) per common share (2) | $ | 0.04 | $ | (0.85 | ) | $ | 1.01 | $ | (6.32 | ) | ||||||||||||||||||||||
| Diluted weighted average shares outstanding | 51,053 | 43,928 | 48,510 | 43,869 | ||||||||||||||||||||||||||||
(1) During the second quarter of fiscal 2021, the Company completed the cash-settled conversion of 150,000 shares of its previously outstanding convertible preferred stock and the conversion of the remaining 50,000 shares of convertible preferred stock into approximately 2.4 million shares of the Company’s common stock, which simplified the Company’s capital structure and eliminated future convertible preferred dividends.
(2) Diluted net income per common share reflects the reallocation of undistributed earnings to preferred stock of $84,883 for the fifty-two weeks ended December 28, 2021.
26901 Malibu Hills Road, Calabasas Hills, CA 91301 · Telephone (818) 871-3000 · Fax (818) 871-3100
| 13 Weeks Ended | 13 Weeks Ended | 52 Weeks Ended | 52 Weeks Ended | |||||||||||||
| Selected Segment Information | December 28, 2021 | December 29, 2020 | December 28, 2021 | December 29, 2020 | ||||||||||||
| Revenues: | ||||||||||||||||
| The Cheesecake Factory restaurants | $ | 594,590 | $ | 438,485 | $ | 2,293,225 | $ | 1,585,008 | ||||||||
| North Italia | 51,155 | 30,324 | 171,901 | 102,585 | ||||||||||||
| Other FRC | 54,197 | 28,792 | 182,175 | 96,856 | ||||||||||||
| Other | 76,751 | 56,951 | 280,239 | 198,776 | ||||||||||||
| Total | $ | 776,693 | $ | 554,552 | $ | 2,927,540 | $ | 1,983,225 | ||||||||
| Income/(loss) from operations: | ||||||||||||||||
| The Cheesecake Factory restaurants | $ | 48,129 | $ | 14,331 | $ | 242,599 | $ | 45,540 | ||||||||
| North Italia | 3,304 | (49 | ) | 8,624 | (77,371 | ) | ||||||||||
| Other FRC | 1,758 | 51 | 16,323 | (77,026 | ) | |||||||||||
| Other | (52,212 | ) | (53,144 | ) | (185,228 | ) | (238,580 | ) | ||||||||
| Total | $ | 979 | $ | (38,811 | ) | $ | 82,318 | $ | (347,437 | ) | ||||||
| Preopening costs: | ||||||||||||||||
| The Cheesecake Factory restaurants | $ | 1,253 | $ | 1,049 | $ | 4,868 | $ | 4,206 | ||||||||
| North Italia | 1,175 | 683 | 4,510 | 2,578 | ||||||||||||
| Other FRC | 1,239 | 797 | 3,188 | 1,324 | ||||||||||||
| Other | 240 | 317 | 1,145 | 2,348 | ||||||||||||
| Total | $ | 3,907 | $ | 2,846 | $ | 13,711 | $ | 10,456 | ||||||||
| Impairment of assets and lease termination expenses: | ||||||||||||||||
| The Cheesecake Factory restaurants | $ | 11,904 | $ | 477 | $ | 11,904 | $ | 3,261 | ||||||||
| North Italia | - | 258 | - | 71,782 | ||||||||||||
| Other FRC | 1,305 | 110 | 1,305 | 73,049 | ||||||||||||
| Other | 4,336 | 13,757 | 4,930 | 71,241 | ||||||||||||
| Total | $ | 17,545 | $ | 14,602 | $ | 18,139 | $ | 219,333 | ||||||||
| Depreciation and amortization expenses: | ||||||||||||||||
| The Cheesecake Factory restaurants | $ | 16,766 | $ | 16,657 | $ | 65,987 | $ | 67,514 | ||||||||
| North Italia | 1,185 | 841 | 4,078 | 3,608 | ||||||||||||
| Other FRC | 1,379 | 1,088 | 4,802 | 4,090 | ||||||||||||
| Other | 3,519 | 4,026 | 14,787 | 16,203 | ||||||||||||
| Total | $ | 22,849 | $ | 22,612 | $ | 89,654 | $ | 91,415 | ||||||||
| 13 Weeks Ended | 13 Weeks Ended | 52 Weeks Ended | 52 Weeks Ended | |||||||||||||
| The Cheesecake Factory restaurants operating information: | December 28, 2021 | December 29, 2020 | December 28, 2021 | December 29, 2020 | ||||||||||||
| Comparable restaurant sales vs. prior year | 33.8 | % | (19.5 | )% | 44.0 | % | (28.2 | )% | ||||||||
| Comparable restaurant sales vs. 2019 | 7.7 | % | 3.3 | % | ||||||||||||
| Restaurants opened during period | 1 | 1 | 2 | 1 | ||||||||||||
| Restaurants open at period-end | 208 | 206 | 208 | 206 | ||||||||||||
| Restaurant operating weeks | 2,700 | 2,666 | 10,758 | 10,642 | ||||||||||||
| North Italia operating information: | ||||||||||||||||
| Comparable restaurant sales vs. prior year | 37 | % | (18 | )% | 48 | % | (28 | )% | ||||||||
| Comparable restaurant sales vs. 2019 | 14 | % | 7 | % | ||||||||||||
| Restaurants opened during period | 1 | - | 6 | 1 | ||||||||||||
| Restaurants open at period-end | 29 | 23 | 29 | 23 | ||||||||||||
| Restaurant operating weeks | 372 | 299 | 1,352 | 1,146 | ||||||||||||
| Other Fox Restaurant Concepts (FRC) operating information: (1) | ||||||||||||||||
| Restaurants opened during period | 2 | 2 | 4 | 2 | ||||||||||||
| Restaurants open at period-end | 31 | 27 | 31 | 27 | ||||||||||||
| Restaurant operating weeks | 393 | 330 | 1,460 | 1,139 | ||||||||||||
| Other operating information: (2) | ||||||||||||||||
| Restaurants opened during period | - | - | 2 | 3 | ||||||||||||
| Restaurants open at period-end | 40 | 39 | 40 | 39 | ||||||||||||
| Restaurant operating weeks | 519 | 479 | 1,993 | 1,721 | ||||||||||||
| Number of company-owned restaurants: | ||||||||||||||||
| The Cheesecake Factory | 208 | |||||||||||||||
| North Italia | 29 | |||||||||||||||
| Other FRC | 31 | |||||||||||||||
| Other | 40 | |||||||||||||||
| Total | 308 | |||||||||||||||
| Number of international-licensed restaurants: | ||||||||||||||||
| The Cheesecake Factory | 29 | |||||||||||||||
(1) The Other FRC segment includes all FRC brands except Flower Child.
(2) The Other segment includes the Flower Child, Grand Lux Cafe, RockSugar Southeast Asian Kitchen and Social Monk Asian Kitchen concepts, as well as the Company's third-party bakery, international and consumer packaged goods businesses, unallocated corporate expenses and gift card costs.
| Selected Consolidated Balance Sheet Information | December 28, 2021 | December 29, 2020 | ||||||
| Cash and cash equivalents | $ | 189,627 | $ | 154,085 | ||||
| Long-term debt, net of issuance costs (1) | 466,017 | 280,000 | ||||||
(1) Incudes $336 million net balance of 0.375% convertible senior notes due 2026 (principal amount of $345 million less $9 million in unamortized issuance cost) and $130 million drawn on the Company's revolving credit facility. The unamortized issuance costs were recorded as a contra-liability and netted with long-term debt on the Condensed Consolidated Balance Sheets and were being amortized as interest expense.
26901 Malibu Hills Road, Calabasas Hills, CA 91301 · Telephone (818) 871-3000 · Fax (818) 871-3100
Reconciliation of Non-GAAP Results to GAAP Results
In addition to the results provided in accordance with accounting principles generally accepted in the United States of America (“GAAP”) in this press release, the Company is providing non-GAAP measurements which present net income and net income per share excluding the impact of certain items. The non-GAAP measurements are intended to supplement the presentation of the Company’s financial results in accordance with GAAP. These non-GAAP measures are calculated by eliminating from net income and diluted net income per share the impact of items the Company does not consider indicative of its ongoing operations. To reflect the then potential impact of the conversion of the Company’s convertible preferred stock into common stock for the period that it was outstanding prior to the repurchase and conversion on June 15, 2021, the Company excludes the preferred dividend and assumes all convertible preferred shares convert to common stock. The Company uses these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons.
The Cheesecake Factory Incorporated
Reconciliation of Non-GAAP Financial Measures
(unaudited; in thousands, except per share data)
| 13 Weeks Ended | 13 Weeks Ended | 52 Weeks Ended | 52 Weeks Ended | |||||||||||||
| December 28, 2021 | December 29, 2020 | December 28, 2021 | December 29, 2020 | |||||||||||||
| Net income/(loss) available to common stockholders (GAAP) | $ | 2,110 | $ | (37,270 | ) | $ | 49,131 | $ | (277,107 | ) | ||||||
| Dividends on Series A preferred stock | - | 4,953 | 18,661 | 13,485 | ||||||||||||
| Direct and incremental Series A preferred stock issuance costs | - | - | - | 10,257 | ||||||||||||
| Net income attributable to Series A preferred stock to apply if-converted method | - | - | 4,581 | - | ||||||||||||
| COVID-19 related costs (1) | - | 5,384 | 4,917 | 22,963 | ||||||||||||
| Impairment of assets and lease termination expenses (2) | 17,545 | 14,602 | 18,139 | 219,333 | ||||||||||||
| Acquisition-related costs (3) | - | 356 | - | 2,699 | ||||||||||||
| Acquisition-related contingent consideration, compensation and amortization expenses/(benefit) (4) | 6,918 | 120 | 19,510 | (3,872 | ) | |||||||||||
| Termination of Interest rate swap | - | - | 2,354 | - | ||||||||||||
| Uncertain tax positions (5) | 4,667 | - | 7,139 | - | ||||||||||||
| Tax effect of adjustments (6) | (6,361 | ) | (5,321 | ) | (11,679 | ) | (62,692 | ) | ||||||||
| Adjusted net income/(loss) (non-GAAP) | $ | 24,879 | $ | (17,176 | ) | $ | 112,753 | $ | (74,934 | ) | ||||||
| Diluted net income/(loss) per common share (GAAP) | $ | 0.04 | $ | (0.85 | ) | $ | 1.01 | $ | (6.32 | ) | ||||||
| Dividends on Series A preferred stock | - | 0.09 | 0.35 | 0.27 | ||||||||||||
| Direct and incremental Series A preferred stock issuance costs | - | - | - | 0.20 | ||||||||||||
| Net income attributable to Series A preferred stock to apply if-converted method | - | - | 0.09 | - | ||||||||||||
| Assumed impact of potential conversion of Series A preferred stock into common stock (7) | - | 0.15 | (0.08 | ) | 0.80 | |||||||||||
| COVID-19 related costs | - | 0.10 | 0.09 | 0.46 | ||||||||||||
| Impairment of assets and lease termination expenses | 0.34 | 0.27 | 0.34 | 4.36 | ||||||||||||
| Acquisition-related costs | - | 0.01 | - | 0.05 | ||||||||||||
| Acquisition-related contingent consideration, compensation and amortization expenses/(benefit) | 0.14 | 0.00 | 0.37 | (0.08 | ) | |||||||||||
| Termination of Interest rate swap | - | - | 0.04 | - | ||||||||||||
| Uncertain tax positions | 0.09 | - | 0.13 | - | ||||||||||||
| Tax effect of adjustments | (0.12 | ) | (0.10 | ) | (0.22 | ) | (1.25 | ) | ||||||||
| Adjusted net income/(loss) per share (non-GAAP) (8) | $ | 0.49 | $ | (0.32 | ) | $ | 2.13 | $ | (1.49 | ) | ||||||
(1) Represents incremental costs associated with COVID-19 such as sick and vaccination pay, healthcare and meal benefits for furloughed staff members, additional sanitation and personal protective equipment.
(2) A detailed breakdown of impairment of assets and lease termination expenses recorded in the thirteen and fifty-two weeks ended December 28, 2021 and December 29, 2020 can be found in the Selected Segment Information table.
(3) Represents costs incurred to effect and integrate the North and FRC acquisition.
(4) Represents changes in the fair value of the deferred consideration and contingent consideration and compensation liabilities related to the North and FRC acquisition, as well as amortization of acquired definite-lived licensing agreements.
(5) Reserve for uncertain tax positions related to tenant improvement allowances and Section 199 deductions. Uncertain tax positions taken in a tax return are recognized in the financial statements when it is more likely than not that the position will be sustained upon examination by tax authorities based on its technical merits, taking into account available administrative remedies and litigation.
(6) Based on the federal statutory rate and an estimated blended state tax rate, the tax effect on all adjustments assumes a 26% tax rate for the fiscal 2021 and 2020 periods.
(7) Represents the impact of assuming the conversion of Series A preferred stock into common stock (0 and 4,431,140 shares for the thirteen and fifty-two weeks ended December 28, 2021, respectively), resulting in an assumption of 50,243,003 and 51,959,879 weighted-average common shares outstanding for the thirteen and fifty-two weeks ended December 28, 2021, respectively. The impact of assuming the conversion of Series A preferred stock into common stock (9,378,275 and 6,390,210 shares for the thirteen and fifty-two weeks ended December 29, 2020, respectively), resulting in an assumption of 53,306,694 and 50,258,815 weighted-average common shares outstanding for the thirteen and fifty-two weeks ended December 29, 2020, respectively.
(8) Adjusted net income per share may not add due to rounding.
26901 Malibu Hills Road, Calabasas Hills, CA 91301 · Telephone (818) 871-3000 · Fax (818) 871-3100
Exhibit 99.2
Investor Presentation February 16, 2022 |
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 and statements with respect to expectations of the Company’s future financial condition, results of operations, cash flows, plans, targets, goals, objectives, performance, growth potential, engines and opportunities, expected growth rates, industry-leading comparable sales growth, competitive position and business; annualized average unit volume; the Company’s strong foothold in the off-premise channel supporting the business in the COVID-19 environment; recovery from the COVID-19 pandemic; the Company’s ability to leverage its brand power, sales, scale and operational expertise to drive margin performance and unit growth; statements from the Company’s corporate social responsibility report; the opportunity for additional domestic and foreign locations and licensees and territories; target returns for new restaurant openings; performance of international licensed locations; the acquisitions of North Italia and Fox Restaurant Concepts (“FRC”) and FRC as an incubation engine; anticipated unit growth roadmap; and resumption of strong unit growth. Such forward-looking statements include all other statements that are not historical facts, as well as statements that are preceded by, followed by or that include words or phrases such as “believe,” “plan,” “will likely result,” “result,” “ expect,” “ intend,” “will continue,” “continue,” “is anticipated,” “anticipated,” “estimate,” “project,” “may,” “could,” “would,” “should” and similar expressions. These statements are based on the Company’s current expectations and involve risks and uncertainties which may cause results to differ materially from those set forth in such statements. These forward-looking statements may be affected by various factors including the rapidly evolving nature of the COVID-19 pandemic and related containment measures, including the potential for a complete shutdown of the Company’s restaurants, international licensee restaurants and the Company’s bakery operations; supply chain disruptions; demonstrations, political unrest, potential damage to or closure of the Company’s restaurants and potential reputational damage to the Company or any of its brands; economic, public health and political conditions that impact consumer confidence and spending, including the impact of the COVID-19 pandemic and other health epidemics or pandemics on the global economy; acceptance and success of The Cheesecake Factory in international markets; acceptance and success of North Italia, FRC concepts, Social Monk Asian Kitchen and other concepts; the risks of doing business abroad through Company owned restaurants and/or licensees; foreign exchange rates, tariffs and cross border taxation; changes in unemployment rates; changes in laws impacting the Company’s business, including laws and regulations related to COVID-19 impacting restaurant operations and customer access to off- and on-premise dining; increases in minimum wages and benefit costs; the economic health of the Company’s landlords and other tenants in retail centers in which its restaurants are located, and the Company’s ability to successfully manage its lease arrangements with landlords; unanticipated costs that may arise in connection with a return to normal course of business including potential negative impacts from furlough actions; the economic health of suppliers, licensees, vendors and other third parties providing goods or services to the Company; timing of the Company’s new unit development; compliance with debt covenants; strategic capital allocation decisions including any share repurchases or dividends; the ability to achieve projected financial results; economic and political conditions that impact consumer confidence and spending; the resolution of uncertain tax positions with the Internal Revenue Service and the impact of tax reform legislation; adverse weather conditions in regions in which the Company’s restaurants are located; factors that are under the control of government agencies, landlords and other third parties; the risks, costs and uncertainties associated with opening new restaurants; and other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission (“SEC”). Forward-looking statements speak only as of the dates on which they are made and the Company undertakes no obligation to publicly update or revise any forward-looking statements or to make any other forward-looking statements, whether as a result of new information, future events or otherwise, unless required to do so by law. Investors are referred to the full discussion of risks and uncertainties associated with forward- looking statements and the discussion of risk factors contained in the Company’s latest Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K as filed with the SEC, which are available at www.sec.gov. Safe Harbor Statement 2 |
An Experiential Dining Category Leader 3 Culinary forward. First class hospitality. Concepts like no other. |
• 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 COVID-19 environment • Best-in-class operational execution and industry-leading retention • Significant and accelerating growth opportunities driving one of the highest expected growth rates in the casual dining industry Investment Highlights 4 |
The Cheesecake Factory - Global Footprint 5 High quality, high profile locations worldwide Company-Owned: 208 Toronto International – Licensed: 29 Mexico City (4) Guadalajara Saudi Arabia (4) UAE (6) Kuwait (3) Qatar (3) Bahrain (1) Shanghai (3) Hong Kong Beijing Monterrey Macau Opportunity for 300 Domestic Locations Over Time & Continued International Expansion |
| Driving Strong Pandemic Recovery with Industry-Leading Comparable Sales Growth 6 1QTD through February 15th Comp Sales vs PY +24.3% 1QTD AWS ~$215,500 Equates to nearly $11.2M AUV 4Q21 Comp Sales vs 2019 +7.7% 4Q21 Average Weekly Sales (AWS) ~$220,200 Equates to $11.5M Annualized Average Unit Volume (AUV) |
~$4 $1.8 $3.1 2019 Early COVID 4Q21 ~$1.7 Sustained Off-Premise Sales Strength4 (AUV $ millions) We Believe Stable, Agile Brands Will Be Best Equipped to Weather Volatility and Thrive Post-COVID 7 Potential Industry Rationalization - Market Share Opportunity Potential Industry Rationalization - Market Share Opportunity “ ” “Large chains and well-funded restaurant groups have the resources to ride out a protracted shutdown, but the independent restaurants that make up about 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.” - New York Times, March 20, 2020 Casual Dining1 Sources: 1Morgan Stanley Report April 6, 2020; 2Bureau of Labor Statistics; 3U.S. Census; 4Annualized average unit volumes based on average weekly sales in each period. Increased Consumer Emphasis On Off-Premise Increased Consumer Emphasis On Off-Premise “Off-premise will likely continue its rise in importance, even after the pandemic” - Technomic, April 24, 2020 ”“ Independents 86% Chains 14% Off-Premise Only 2 As of May 2021, the NRA estimated that 15% (~90,000) of restaurants have closed. 3 2019 Early-COVID 4Q19 4Q21 1.4% 1.8% 2.1% 1.3% 1.5% 1.5% 1.8% 2.5% 2.2% 1.9% 0.8% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.6% 0.5% 0.5% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Annual Restaurant Unit Growth US Population Growth |
Filling White Space for an On-Trend, Contemporary Italian Offering 8 • Potential for 200 domestic locations over time - 29 locations in 12 states & Washington D.C. currently • All dishes handmade from scratch daily • Serving lunch, dinner, weekend brunch & weekday happy hour • Average check: $25 - $30 • 30%+ alcohol mix FY19 Comp Sales: 6% Note: Operating metrics pre-COVID-19 |
| Driving Strong Pandemic Recovery with Industry-Leading Comparable Sales Growth 9 *4Q21 reported results reflect impact of 6 new unit openings year-to-date and other locations that have not yet reached steady-state operational levels. **Mature locations defined as locations opened 3 years or more at the beginning of 2021, excluding 1 underperforming restaurant in a tourist location significantly impacted by capacity restrictions. • Reservation management to drive sales & throughput • Leveraging buying power and sales/inventory management systems to reduce food costs • Robust labor management systems and analysis to drive productivity • Leveraging benefits infrastructure and equity plan to attract and retain top talent 11.1% 16.9% 4Q21* 4Q21 Mature Locations** Restaurant-Level Margin +14% 4Q21 Comp Sales vs 2019 ~$137,500 Equates to $7.2M AUV 4Q21 AWS +38% 1QTD through February 15th Comp Sales vs PY *Restaurant-level margin calculated as North Italia segment income from operations + segment preopening costs + segment impairment of assets and lease termination expenses + segment depreciation and amortization expenses / North Italia segment revenue |
Fox Restaurant Concepts (FRC) Expected to Serve as an Incubation Engine Innovating Concepts of the Future 10 Potential Growth Potential Growth Boutique Brands Boutique Brands 59 Total FRC Locations Across the U.S. |
| Diversified Growth Engines Expected to Drive 7% Unit Growth Annually Beginning in FY22 Target Size (productive sq. ft.) 7,000–10,000 6,000 -7,000 3,500 –15,000 Targeted Average UnitVolume $11M-$12M $7M-$7.5M Avg. $5M-$5.5M Targeted Sales/productive sq. ft. ~$1,100 ~$1,200 ~$1,000 Target Long-Term Unit Growth ~3% ~20%+ ~15% -20% Top-Line Unit Growth Contribution ~3% ~2% ~2% Target Restaurant-Level Margin % ~18% ~18% - 20% ~16% - 18% Cash Capex Investment $8M+ $3.5M+ $500/sq. ft. Target Cash-on-CashReturn 20% -25% 35%+ 25% -30% Sales/Investment Ratio Varies 2:1 2:1 11 Diversified multi- concept across segment, price point, occasion, real estate and labor Leveraging brand power, operational excellence, scale, supply chain and real estate development expertise Anticipated Unit Growth Roadmap Anticipated Unit Growth Roadmap ¹Illustrative example of target returns for new restaurant openings | ²Average unit volume and steady-state restaurant-level margin typically reached after 3 years of operations ¹ ² ² |
| We Have Resumed Strong Unit Growth With Impressive Early Results 12 2021 New Restaurants Opened The Cheesecake Factory Washington D.C. Blanco Nashville, TN North Italia Birmingham, AL As many as 17-19 additional units planned for 2022 North Italia Franklin, TN North Italia Miami, FL North Italia San Antonio, TX Flower Child Atlanta, GA Blanco Oak Brook, IL North Italia Gilbert, AZ Flower Child Gilbert, AZ The Cheesecake Factory Huntsville, AL North Italia Orlando, FL Blanco Denver, CO Culinary Dropout Denver, CO |
| Breadth of Menu & Innovation – 235 Items Made Fresh, From Scratch Ambiance, Service and Hospitality The Cheesecake Factory - A Highly Differentiated Concept Best-in-Class Operational Execution Integrated Bakery |
| Integrated Bakery – The “Cheesecake” Magic • Produces over 60 cheesecakes and other baked desserts • Enables creativity, quality control and supply chain efficiencies FY19 16% FY19 16% 15 FY20 21% FY20 21% Differentiated positioning has been a key sales driver during COVID-19 Industry-Leading Dessert Sales Industry-Leading Dessert Sales FY21 19% FY21 19% |
Best-in-Class Operational Execution and Industry-Leading Retention Average Tenure by Position 32 years 23 years 20 years 19 years 14 years 13 years Senior VP of Operations Regional Vice Presidents Area Directors of Operations Area Kitchen Operations Managers General Managers Executive Kitchen Managers “What we found is that food and beverage innovation is table stakes; you need to do it, but it’s not sustainable,” The ironclad correlation with success? “It was GM retention.” – Wally Doolin, Black Box Intelligence* From FORTUNE. ©2021 Fortune Media IP Limited. FORTUNE 100 Best Companies to Work For is a trademark of Fortune Media IP Limited and is used under license. FORTUNE and Fortune Media IP Limited are not affiliated with, and do not endorse products or services of, Licensee. *Restaurant Business, May 2018 16 Also recognized as a best workplace for diversity, millennials, and women 8th consecutive year |
| Performance During COVID-19 Has Reinforced That The Cheesecake Factory is a Destination • FY20 average sales per productive square foot adjusted for interior capacity restrictions related to the COVID-19 pandemic was $1,127, a 14% increase over FY19. Reflecting the impact of COVID-19 dining restrictions, FY20 average sales per productive square foot declined 27% to $716 from FY19. • The Cheesecake Factory restaurants have driven the highest absolute off-premise sales dollars and maintained the highest level of off-premise sales volumes when dining rooms reopened in 2Q21 relative to its publicly-traded casual dining industry peers. • California locations operating with off-premise and patios only during Summer 2020 generated nearly 90% of sales volumes of all locations with reopened indoor dining rooms when malls predominantly remained closed in California. |
Cult Status & Strong Consumer Engagement 1M+ followers 5M+ fans 355K followers Millions of Viewers 18 Note: Statistics as of February 9, 2022 120K followers Themed filters reaching 5M+ users |
Broad Consumer Demographic and Appeal With a Moderate Average Check Highest Unit Volumes ($ in millions) Source: Latest pre-COVID-19 SEC 10-K filings and company presentations 19 Casual Dining $10.7 $8.3 $8.1 $5.5 $5.2 $5.0 $3.7 $3.6 $3.0 $2.9 Maggianos Yard House BJ's Texas Roadhouse Olive Garden Outback LongHorn Bonefish Carrabbas $32 $29 $27 $24 $23 $22 $22 $19 $18 $17 Yard House MaggianosBonefish Outback CarrabbasLongHorn Olive Garden Texas Roadhouse BJ's #1 Quality #2 Service #3 Ambiance |
9% 12% 14% 16% 43% 43% 31% 28% 27% Off-Premise Sales (% of Total Revenue) Leveraging This Differentiation in the Off-Premise Channel New Takeout Packaging New Takeout Packaging 20 *Annualized unit volume equivalent based on total system restaurant average weekly sales ~$3.1 million per restaurant* Reflecting COVID-19 dining restrictions |
Further Leaning in to Convenience 21 |
The Cheesecake Factory – Expanding International Licensed Presence • Anticipated continued expansion within current geographies • Potential for additional geographies with current licensees • Opportunity to add licensees and territories +1¢ Per Restaurant in EPS, on Average $0 Capital Expenditure Shanghai 22 |
Capitalizing on the Power of the Brand The Cheesecake Factory At Home® 23 |
CSR – Contributing to the Well-Being of Our Staff, Local Communities and the Environment We All Share 24 Source: The Cheesecake Factory Incorporated 2019 and 2020 Corporate Social Responsibility Reports. *Free from recombinant bovine somatotropin (rbST) or a recombinant bovine growth hormone (rbGH), often used for lactating dairy cows to increase the production of milk. |
Track Record of Consistent Financial Performance 25 |
(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% (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)% History of Outperforming the Industry 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020* 2021** Knapp-Track Index Comparable Sales - Historical 2-year Stack 26 Industry Outperformance During Economic Downturn Geographical discrepancies in dining restrictions & reopening timelines *2020 results reflect the impact of the COVID-19 pandemic. **2021 data compares against 2019 data due to COVID-19 pandemic. |
27 $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 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Capital Allocation Detail Capital Allocation Detail $85 $163 $128 $120 $112 $107 $135 $94 $158 $100 $163 $119 ($47) $146 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 ¹Free cash flow defined as cash flow from operations (includes adjustment for excess tax benefit related to stock options exercised in 2008-2016 to conform to current year presentation) less capital expenditures and investment in unconsolidated affiliates prior to the acquisition of North Italia and Fox Restaurant Concepts ²2019 Capex/Investment does not include the acquisition of North Italia and Fox Restaurant Concepts Note: 2020 results reflect the impact of the COVID-19 pandemic and the issuance of 200,000 shares of Series A Convertible Preferred Stock. Please see Appendix for GAAP to Non-GAAP reconciliations and for an explanation regarding an accounting reclassification for prior years $85 $37 $42 $77 $86 $106$114 $154$158$139$128 $99 $50 $67 $173 $52 $172 $101 $184 $141 $109 $146 $123 $109 $51 $4 $6 $13 $27 $30 $36 $42 $50 $56 $61 $16 64,009 44,545 52,941 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Common Stock Dividend Share Repurchases Capex / Investment ² Weighted Average Shares Outstanding Durable Business Over Time Free Cash Flow¹ Free Cash Flow¹ Adjusted Earnings/(Loss) Per Share Adjusted Earnings/(Loss) Per Share ($ in millions) ($ in millions) |
Appendix |
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 and free cash flow. The non-GAAP measurements are intended to supplement the presentation of the Company’s financial results in accordance with GAAP. The Company believes that the presentation of these items provides additional information to facilitate the comparison of past and present financial results. 29 |
Non-GAAP Reconciliation (1) Represents incremental costs associated with COVID-19 such as sick and vaccination pay, healthcare and meal benefits for furloughed staff members, additional sanitation and personal protective equipment. (2) The tax effect assumes a tax rate based on the federal statutory rate and an estimated blended state tax rate. (3) Fiscal 2017 includes a $38.5 million benefit to the income tax provision related to tax reform enacted in December 2017. (4) Adjusted diluted net income/(loss) per share may not add due to rounding. 30 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 $ 114,356 $ 101,276 $ 116,523 $ 139,494 $ 157,392 $ 99,035 $ 127,293 $ (277,107) $ 49,131 $ - Impairment of assets and lease termination expenses 2,952 26,541 - 1,547 9,536 (561) 696 6,011 114 10,343 17,861 18,247 219,333 18,139 - Partial IRS settlement - - - (1,794) - - - - - - - - - - - Termination of Interest rate swap - 7,421 7,376 - - - - - - - - - - 2,354 - Chairman and CEO employment agreement - 2,550 - - - - - - - - - - - - Proceeds from variable life insurance contract - (668) - - (419) - - - - - - - - - - Loss on investment in unconsolidated affiliates - - - - - - - - - 479 4,754 13,439 - - - Gain on investment in unconsolidated affiliates - - - - - - - - - - - (52,672) - - - Acquisition-related costs - - - - - - - - - - - 5,270 2,699 - - Acquisition-related contingent consideration, compensation and amortization expenses/(benefit) - - - - - - - - - - - 1,033 (3,872) 19,510 - Dividends on Series A preferred stock - - - - - - - - - - - - 13,485 18,661 - Net income attributable to Series A preferred stock to apply if-converted method - - - - - - - - - - - - - 4,581 - Direct and incremental Series A preferred stock issuance costs - - - - - - - - - - - - 10,257 - - Assumed impact of potential conversion of Series A preferred stock into common stock ------------ - - - COVID-19 related costs (1) - - - - - - - - - - - - 22,963 4,917 - Uncertain tax positions ------------ - 7,139 - Tax effect of adjustments (2) (1,181) (14,605) (2,951) (331) (3,814) 224 (278) (2,404) (46) (4,329) (5,880) 3,818 (62,692) (11,679) - One-time tax items (3) - - - - - - - - - (38,525) - - - - Adjusted net income/(loss) (non-GAAP) 54,064 $ 64,072 $ 86,138 $ 95,142 $ 103,726 $ 114,019 $ 101,694 $ 120,130 $ 139,562 $ 125,360 $ 115,770 $ 116,428 $ (74,934) $ 112,753 $ Diluted net income/(loss) per share (GAAP) 0.82 $ 0.71 $ 1.35 $ 1.64 $ 1.78 $ 2.10 $ 1.96 $ 2.30 $ 2.83 $ 3.27 $ 2.14 $ 2.86 $ (6.32) $ 1.01 $ - Impairment of assets and lease termination expenses 0.05 0.44 - 0.03 0.17 (0.01) 0.01 0.12 0.00 0.21 0.39 0.41 4.36 0.34 - Partial IRS settlement - - - (0.03) - - - - - - - - - - - Termination of Interest rate swap - 0.12 0.12 - - - - - - - - - - 0.04 - Chairman and CEO employment agreement - 0.04 - - - - - - - - - - - - - Proceeds from variable life insurance contract - (0.01) - - (0.01) - - - - - - - - - - Loss on investment in unconsolidated affiliates - - - - - - - - - 0.01 0.10 0.30 - - - Gain on investment in unconsolidated affiliates - - - - - - - - - - - (1.18) - - - Acquisition-related costs - - - - - - - - - - - 0.12 0.05 - - Acquisition-related contingent consideration, compensation and amortization expenses/(benefit) - - - - - - - - - - - 0.02 (0.08) 0.37 - Dividends on Series A preferred stock - - - - - - - - - - - - 0.27 0.35 - Net income attributable to Series A preferred stock to apply if-converted method - - - - - - - - - - - - - 0.09 - Direct and incremental Series A preferred stock issuance costs - - - - - - - - - - - - 0.20 - - Assumed impact of potential conversion of Series A preferred stock into common stock - - - - - - - - - - - - 0.80 (0.08) - COVID-19 related costs - - - - - - - - - - - - 0.46 0.09 - Uncertain tax positions - - - - - - - - - - - - - 0.13 - Tax effect of adjustments (0.03) (0.23) (0.05) - (0.06) 0.01 - (0.05) 0.00 (0.09) (0.12) 0.09 (1.25) (0.22) - One-time tax items - - - - - - - - - (0.80) - - - - Adjusted diluted net income/(loss) per share (non-GAAP) (4) 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 $ Fiscal Year The Cheesecake Factory Incorporated Reconciliation of Non-GAAP Financial Measures ($ in thousands, except per share data) |
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, 2015, 2014, 2013, 2012, 2011, 2010, 2009 and 2008 have been adjusted to conform to the current year presentation. 31 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 $ 219 $ 3 $ 213 $ Capital expenditures / investments 85 37 42 77 86 106 114 154 158 139 128 99 50 67 Free cash flow 85 $ 163 $ 128 $ 120 $ 112 $ 107 $ 135 $ 94 $ 158 $ 100 $ 163 $ 120 $ (47) $ 146 $ Fiscal Year The Cheesecake Factory Incorporated Reconciliation of Non-GAAP Financial Measures ($ in millions) |