8-K
Cheesecake Factory Inc (CAKE)
UNITED STATESSECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) ofThe Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 24, 2025
THE CHEESECAKE
FACTORY INCORPORATED
(Exact name of registrant as specified in its charter)
| Delaware | 0-20574 | 51-0340466 |
|---|---|---|
| (State<br> or other jurisdiction | (Commission | (IRS<br> Employer |
| of<br> incorporation) | File<br> Number) | Identification<br> No.) |
| 26901 Malibu Hills Road<br>Calabasas Hills , California | 91301 | |
| --- | --- | |
| (Address<br> of principal executive offices) | (Zip<br> Code) |
Registrant’s telephone number, including area code
(818
) 871-3000
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ | Written<br> communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ¨ | Soliciting<br> material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| --- | --- |
| ¨ | Pre-commencement<br> communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ¨ | Pre-commencement<br> communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| --- | --- |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class: | Trading Symbol(s) | Name of each exchange on which registered: |
|---|---|---|
| Common<br> Stock, par value $.01 per share | CAKE | The<br> Nasdaq Stock Market LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
The following information under Item 2.02 ofForm 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 SecuritiesExchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Actof 1933, as amended, or the Exchange Act, whether made before or after the date of this report, regardless of any general incorporationlanguage in the filing.
| ITEM 2.02 | RESULTS OF OPERATIONS AND FINANCIAL CONDITION |
|---|
In a press release dated April 30, 2025, a copy of which is furnished as Exhibit 99.1 to this report, The Cheesecake Factory Incorporated (the “Company”) reported financial results for the first quarter of fiscal 2025, which ended on April 1, 2025.
| ITEM 7.01 | REGULATION FD DISCLOSURE |
|---|
On April 30, 2025, 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 8.01 | OTHER EVENTS |
|---|
On April 24, 2025, the Board of Directors of the Company (the “Board”) declared a quarterly cash dividend of $0.27 per share, which will be paid on May 27, 2025 to the stockholders of record of each share of the Company’s common stock at the close of business on May 14, 2025. Future decisions to pay or to increase or decrease dividends are at the discretion of the Board and will depend upon operating performance and other factors.
| ITEM 9.01 | FINANCIAL STATEMENTS AND EXHIBITS |
|---|
| (d) | Exhibits | |
|---|---|---|
| 99.1 | Press<br> release dated April 30, 2025 entitled “The Cheesecake Factory Reports Results for First Quarter of Fiscal 2025” | |
| 99.2 | The<br> Cheesecake Factory Investor Presentation dated April 30, 2025 | |
| 104.1 | Cover Page Interactive Data<br> 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: April 30, 2025 | 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 | |
| investorrelations@thecheesecakefactory.com |
THE CHEESECAKE FACTORY REPORTS RESULTS FOR
FIRST QUARTER OF FISCAL 2025
CALABASAS HILLS, Calif. – April 30,2025 – The Cheesecake Factory Incorporated (NASDAQ: CAKE) today reported financial results for the first quarter of fiscal 2025, which ended on April 1, 2025.
Total revenues were $927.2 million in the first quarter of fiscal 2025 compared to $891.2 million in the first quarter of fiscal 2024. Net income and diluted net income per share were $32.9 million and $0.67, respectively, in the first quarter of fiscal 2025.
The Company recorded a pre-tax net expense of $17.3 million related to loss on extinguishment of debt associated with the partial redemption of our convertible senior notes due 2026, Fox Restaurant Concepts (“FRC”) acquisition-related items, and impairment of assets and lease termination expenses. Excluding the after-tax impact of these items, adjusted net income and adjusted diluted net income per share for the first quarter of fiscal 2025 were $45.7 million and $0.93, 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 1.0% year-over-year in the first quarter of fiscal 2025.
“Our first quarter results reflect a strong start to the year as we delivered solid topline revenue, margins and earnings, reflecting continued positive momentum across our business,” said David Overton, Chairman and Chief Executive Officer. “Sales finished towards the higher end of our expectations, led by The Cheesecake Factory restaurants, underscoring the consistent consumer demand for the high-quality, differentiated dining experiences we provide. And once again execution within our restaurants was exceptional, as our operators delivered year-over-year improvements in labor productivity, food efficiency, wage management and retention across both hourly staff and managers, driving strong profit flow-through and margin expansion.”
Overton continued, “For more than four decades, our strategy has been built on our commitment to delivering exceptional hospitality and delicious, memorable dining experiences—core values that continue to set our concepts apart and drive our success. We are honored to be recognized on the Fortune magazine '100 Best Companies to Work For' list for the 12^th^ consecutive year, reinforcing our belief that we are an employer of choice and highlighting the passion and dedication of our incredible teams.”
26901 Malibu Hills Road, Calabasas Hills, CA 91301 • Telephone (818) 871-3000
Development
During the first quarter of fiscal 2025, the Company opened eight new restaurants, including three North Italia locations, three Flower Child locations and two FRC restaurants. Subsequent to quarter-end, the Company opened three new restaurants, including one Flower Child location and two FRC restaurants.
The Company continues to expect to open as many as 25 new restaurants in fiscal 2025, including as many as three to four The Cheesecake Factory restaurants, six to seven North Italia locations, six to seven Flower Child locations, and as many as eight to nine FRC restaurants.
Liquidity and Capital Allocation
On February 28, 2025, the Company issued $575 million of 2.00% convertible senior notes due 2030. The net proceeds were used to repurchase $276 million of the convertible senior notes due 2026, repurchase 2.4 million shares of common stock and pay down the outstanding balance on the revolving credit facility.
As of April 1, 2025, the Company had total available liquidity of $501.9 million, including a cash balance of $135.4 million and $366.5 million of availability on its revolving credit facility with no outstanding balance. Total principal amount of debt outstanding was $644.0 million, including $69.0 million in principal amount of 0.375% convertible senior notes due 2026 and $575.0 million in principal amount of 2.00% convertible senior notes due 2030.
The Company repurchased approximately 2.6 million shares of its common stock at a cost of $141.4 million in the first quarter of fiscal 2025, inclusive of the 2.4 million shares repurchased using a portion of the net proceeds from the issuance of the 2.00% convertible senior notes due 2030. In addition, the Company’s Board of Directors has declared a quarterly dividend of $0.27 per share to be paid on May 27, 2025, to shareholders of record at the close of business on May 14, 2025.
Conference Call and Webcast
The Company will hold a conference call to review its results for the first quarter of fiscal 2025 today at 2:00 p.m. Pacific Time. The conference call will be webcast live on the Company’s website at investors.thecheesecakefactory.com.
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 358 restaurants throughout the United States and Canada under brands including The Cheesecake Factory^®^, North Italia^®^, Flower Child^®^ and a collection of other FRC brands. Internationally, 33 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 2025, we were named to the FORTUNE Magazine “100 Best Companies to Work For^®^” list for the twelfth consecutive year. To learn more, visit www.thecheesecakefactory.com, www.northitalia.com, www.iamaflowerchild.com and www.foxrc.com.
From Fortune. ©2025 Fortune Media IP Limited. All rights reserved. Used under license. Fortune® and Fortune 100 Best Companies to Work For® are registered trademarks of Fortune Media IP Limited and are used under license. Fortune and Fortune Media IP Limited are not affiliated with, and do not endorse products or services of, The Cheesecake Factory Incorporated.
26901 Malibu Hills Road, Calabasas Hills, CA 91301 • Telephone (818) 871-3000
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 the Company’s operations, growth, restaurant development and other objectives. 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: economic, public health and political conditions that impact consumer confidence and spending, including trade policy, interest rate fluctuations, periods of heightened inflation and market instability, and armed conflicts; 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; pandemics and related containment measures, including the potential for quarantines or restriction on in-person dining; acceptance and success of The Cheesecake Factory in international markets; acceptance and success of North Italia, Flower Child and Other 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; 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; the economic health of suppliers, licensees, vendors and other third parties providing goods or services to the Company; the timing of new unit development and related permitting; compliance with debt covenants; strategic capital allocation decisions including with respect to share repurchases or dividends; the ability to achieve projected financial results; the resolution of uncertain tax positions with the Internal Revenue Service and the impact of tax reform legislation; changes in laws impacting the Company’s business; 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
The Cheesecake Factory Incorporated
Condensed Consolidated Statements of Income
(unaudited; in thousands, except per share data)
| 13 Weeks Ended | 13 Weeks Ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Consolidated Statements of Income | April 1, 2025 | April 2, 2024 | ||||||||||
| Amount | Percent of <br> Revenues | Amount | Percent of <br> Revenues | |||||||||
| Revenues | $ | 927,197 | 100.0 | % | $ | 891,223 | 100.0 | % | ||||
| Costs and expenses: | ||||||||||||
| Food and beverage costs | 202,261 | 21.8 | % | 203,253 | 22.8 | % | ||||||
| Labor expenses | 331,075 | 35.7 | % | 320,930 | 36.0 | % | ||||||
| Other operating costs and expenses | 246,425 | 26.7 | % | 233,541 | 26.3 | % | ||||||
| General and administrative expenses | 59,932 | 6.5 | % | 60,366 | 6.8 | % | ||||||
| Depreciation and amortization expenses | 26,082 | 2.8 | % | 24,756 | 2.8 | % | ||||||
| Impairment of assets and lease termination expenses | 378 | 0.0 | % | 2,083 | 0.2 | % | ||||||
| Acquisition-related contingent consideration, compensation and amortization expenses | 998 | 0.1 | % | 1,121 | 0.1 | % | ||||||
| Preopening costs | 8,087 | 0.8 | % | 5,880 | 0.6 | % | ||||||
| Total costs and expenses | 875,238 | 94.4 | % | 851,930 | 95.6 | % | ||||||
| Income from operations | 51,959 | 5.6 | % | 39,293 | 4.4 | % | ||||||
| Interest expense, net^(1)^ | (2,328 | ) | (0.3 | )% | (2,778 | ) | (0.3 | )% | ||||
| Loss on debt extinguishment | (15,891 | ) | (1.7 | )% | - | 0.0 | % | |||||
| Other income, net^(1)^ | 743 | 0.1 | % | 1,017 | 0.1 | % | ||||||
| Income before income taxes | 34,483 | 3.7 | % | 37,532 | 4.2 | % | ||||||
| Income tax provision | 1,542 | 0.1 | % | 4,341 | 0.5 | % | ||||||
| Net income | $ | 32,941 | 3.6 | % | $ | 33,191 | 3.7 | % | ||||
| Basic net income per share | $ | 0.69 | $ | 0.70 | ||||||||
| Basic weighted average shares outstanding | 47,526 | 47,749 | ||||||||||
| Diluted net income per share | $ | 0.67 | $ | 0.68 | ||||||||
| Diluted weighted average shares outstanding | 49,284 | 48,662 | ||||||||||
| (1) In the first quarter of fiscal year 2025, we separately disclosed interest expense, net and other income, net on the consolidated statement of income. Corresponding prior year balances were reclassified to conform to the current year presentation | ||||||||||||
| --- |
26901 Malibu Hills Road, Calabasas Hills, CA 91301 • Telephone (818) 871-3000
The Cheesecake Factory Incorporated
Selected Segment Information
(unaudited; in thousands)
| For the 13 Weeks Ended April 1, 2025 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| The Cheesecake | |||||||||||
| Factory | North | Other | |||||||||
| restaurants | Italia | FRC | Other | Total | |||||||
| Revenues | $ | 672,734 | $ | 83,410 | $ | 87,424 | $ | 83,629 | $ | 927,197 | |
| Costs and expenses: | |||||||||||
| Food and beverage costs | 147,655 | 18,415 | 19,149 | 17,042 | 202,261 | ||||||
| Labor expenses | 233,391 | 31,917 | 31,562 | 34,205 | 331,075 | ||||||
| Other operating costs and expenses | 174,604 | 22,620 | 25,565 | 23,636 | 246,425 | ||||||
| General and administrative expenses | - | - | - | 59,932 | 59,932 | ||||||
| Depreciation and amortization expenses | 16,226 | 2,798 | 3,035 | 4,023 | 26,082 | ||||||
| Impairment of assets and lease termination expenses | 75 | - | 300 | 3 | 378 | ||||||
| Acquisition-related contingent consideration, compensation and amortization expenses | - | - | 316 | 682 | 998 | ||||||
| Preopening costs | 1,350 | 2,680 | 2,793 | 1,264 | 8,087 | ||||||
| Total costs and expenses | 573,301 | 78,430 | 82,720 | 140,787 | 875,238 | ||||||
| Income/(loss) from operations | $ | 99,433 | $ | 4,980 | $ | 4,704 | $ | (57,158 | ) | $ | 51,959 |
| For the 13 Weeks Ended April 2, 2024 | |||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| The Cheesecake | |||||||||||
| Factory | North | Other | |||||||||
| restaurants | Italia | FRC | Other | Total | |||||||
| Revenues | $ | 667,794 | $ | 70,874 | $ | 74,229 | $ | 78,326 | $ | 891,223 | |
| Costs and expenses: | |||||||||||
| Food and beverage costs | 153,570 | 17,037 | 16,586 | 16,060 | 203,253 | ||||||
| Labor expenses | 235,212 | 27,202 | 26,116 | 32,400 | 320,930 | ||||||
| Other operating costs and expenses | 172,481 | 19,492 | 20,770 | 20,798 | 233,541 | ||||||
| General and administrative expenses | - | - | - | 60,366 | 60,366 | ||||||
| Depreciation and amortization expenses | 16,843 | 1,971 | 2,425 | 3,517 | 24,756 | ||||||
| Impairment of assets and lease termination expenses | 1,859 | - | - | 224 | 2,083 | ||||||
| Acquisition-related contingent consideration, compensation and amortization expenses | - | - | 316 | 805 | 1,121 | ||||||
| Preopening costs | 1,758 | 2,002 | 1,724 | 396 | 5,880 | ||||||
| Total costs and expenses | 581,723 | 67,704 | 67,937 | 134,566 | 851,930 | ||||||
| Income/(loss) from operations | $ | 86,071 | $ | 3,170 | $ | 6,292 | $ | (56,240 | ) | $ | 39,293 |
26901 Malibu Hills Road, Calabasas Hills, CA 91301 • Telephone (818) 871-3000
The Cheesecake Factory Incorporated
Selected Operating, Restaurant and Balance Sheet Information
(unaudited; in thousands, except statistical data)
| 13 Weeks Ended | 13 Weeks Ended | |||||
|---|---|---|---|---|---|---|
| The Cheesecake Factory restaurants operating information: | April 1, 2025 | April 2, 2024 | ||||
| Comparable restaurant sales vs. prior year | 1.0 | % | (0.6 | )% | ||
| Restaurants opened during period | - | - | ||||
| Restaurants open at period-end | 215 | 216 | ||||
| Restaurant operating weeks | 2,795 | 2,807 | ||||
| North Italia operating information: | ||||||
| Comparable restaurant sales vs. prior year | (1 | )% | 3 | % | ||
| Restaurants opened during period | 3 | 2 | ||||
| Restaurants open at period-end | 45 | 38 | ||||
| Restaurant operating weeks | 560 | 480 | ||||
| Other Fox Restaurant Concepts (FRC) operating information:^(1)^ | ||||||
| Restaurants opened during period | 2 | 2 | ||||
| Restaurants open at period-end | 49 | 42 | ||||
| Restaurant operating weeks | 626 | 528 | ||||
| Other operating information:^(2)^ | ||||||
| Restaurants opened during period | 3 | 1 | ||||
| Restaurants open at period-end | 46 | 40 | ||||
| Restaurant operating weeks | 582 | 516 | ||||
| Number of company-owned restaurants: | ||||||
| The Cheesecake Factory | 215 | |||||
| North Italia | 45 | |||||
| Other FRC | 49 | |||||
| Other | 46 | |||||
| Total | 355 | |||||
| Number of international-licensed restaurants: | ||||||
| The Cheesecake Factory | 33 |
(1) The Other FRC segment includes all FRC brands except Flower Child.
(2) The Other segment includes the Flower Child, Grand Lux Cafe 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 | April 1, 2025 | December 31, 2024 | ||
|---|---|---|---|---|
| Cash and cash equivalents | $ | 135,411 | $ | 84,176 |
| Long-term debt, net of issuance costs ^(1)^ | 627,306 | 452,062 |
(1) Includes $68.5 million net balance of 0.375% convertible senior notes due 2026 (principal amount of $69 million less $0.5 million in unamortized issuance costs) and $558.8 million net balance of 2.00% convertible senior notes due 2030 (principal amount of $575 million less $16.2 million in unamortized issuance costs). The unamortized issuance costs were recorded as a contra-liability and netted with long-term debt on the Condensed Consolidated Balance Sheet and are being amortized as interest expense.
26901 Malibu Hills Road, Calabasas Hills, CA 91301 • Telephone (818) 871-3000
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. 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 | |||||
| --- | --- | --- | --- | --- | --- | --- |
| April 1, 2025 | April 2, 2024 | |||||
| Net income (GAAP) | $ | 32,941 | $ | 33,191 | ||
| Impairment<br>of assets and lease termination expenses^(1)^ | 378 | 2,083 | ||||
| Acquisition-related<br>contingent consideration, compensation and amortization expenses^(2)^ | 998 | 1,121 | ||||
| Loss on extinguishment of debt^(3)^ | 15,891 | - | ||||
| Tax<br>effect of adjustments^(4)^ | (4,489 | ) | (833 | ) | ||
| Adjusted net income (non-GAAP) | $ | 45,719 | $ | 35,562 | ||
| Diluted net income/(loss) per share (GAAP) | $ | 0.67 | $ | 0.68 | ||
| Impairment<br>of assets and lease termination expenses^(1)^ | 0.01 | 0.04 | ||||
| Acquisition-related<br>contingent consideration, compensation and amortization expenses^(2)^ | 0.02 | 0.02 | ||||
| Loss on extinguishment of debt^(3)^ | 0.32 | - | ||||
| Tax<br>effect of adjustments^(4)^ | (0.09 | ) | (0.02 | ) | ||
| Adjusted diluted net income per share (non-GAAP)^(5)^ | $ | 0.93 | $ | 0.73 | ||
| (1) A detailed breakdown of impairment of assets and lease termination expenses recorded in the thirteen weeks ended April 1, 2025 and April 2, 2024 can be found in the Selected Segment Information table. | ||||||
| --- | ||||||
| (2) Represents changes in the fair value of the deferred consideration and contingent consideration and compensation liabilities related to the North Italia and FRC acquisition, as well as amortization of acquired definite-lived licensing agreements. | ||||||
| (3) Represents premium paid and acceleration of previously unamortized deferred financing costs as a result of partial redemption of our convertible senior notes due 2026. | ||||||
| (4) 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 2025 and 2024 periods. | ||||||
| (5) Adjusted net income per share may not add due to rounding. |
26901 Malibu Hills Road, Calabasas Hills, CA 91301 • Telephone (818) 871-3000
Exhibit 99.2
| INVESTOR<br>PRESENTATION<br>April 30, 2025 | |||
|---|---|---|---|
| SAFE HARBOR STATEMENT<br>2<br>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<br>1934, as amended. This includes, without limitation, financial guidance and projections, including underlying assumptions, and statements with respect to expectations of the<br>Company’s future financial condition, results of operations, cash flows, share repurchases, objectives, growth potential, engines and opportunities, expected growth rates and targets,<br>market potential and total addressable market runway; growth outlook; industry-leading comparable sales growth, retention and competitive position; quality control and supply chain<br>efficiencies; operational execution and retention; annualized average unit volume; the Company’s differentiation and strong foothold in the off-premise channel; the opportunity for<br>additional domestic and foreign locations and licensees and territories; target returns for new restaurant openings; international expansion; North Italia and Fox Restaurant Concepts<br>(“FRC”) as growth drivers and FRC as an incubation engine; new restaurant targeted ranges and unit growth rates.<br>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<br>as “believe,” “plan,” “will likely result,” “expect,” “intend,” “will continue,” “is anticipated,” “estimate,” “project,” “may,” “could,” “would,” “should” and similar expressions. These<br>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<br>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<br>statements may be affected by various factors including: economic, public health and political conditions that impact consumer confidence and spending, including changes in interest<br>rates, periods of heightened inflation and market instability, and armed conflicts; supply chain disruptions; demonstrations, political unrest, potential damage to or closure of our<br>restaurants and potential reputational damage to us or any of our brands; pandemics and related containment measures, including the potential for quarantines or restriction on in-person dining; acceptance and success of The Cheesecake Factory in international markets; acceptance and success of North Italia and the FRC concepts; the risks of doing business<br>abroad through Company-owned restaurants and/or licensees; foreign exchange rates, tariffs and cross border taxation; changes in unemployment rates; increases in minimum wages<br>and benefit costs; the economic health of our landlords and other tenants in retail centers in which our restaurants are located, and our ability to successfully manage our lease<br>arrangements with landlords; the economic health of suppliers, licensees, vendors and other third parties providing goods or services to us; the timing of our new unit development<br>and related permitting; compliance with debt covenants; strategic capital allocation decisions including with respect to share repurchases or dividends; the ability to achieve projected<br>financial results; the resolution of uncertain tax positions with the Internal Revenue Service and the impact of tax reform legislation; changes in laws impacting our business; adverse<br>weather conditions and natural disasters in regions in which our restaurants are located; factors that are under the control of government agencies, landlords and other third parties; the<br>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<br>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<br>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.<br>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<br>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. | |||
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| COMPANY<br>OVERVIEW | |||
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| INVESTMENT HIGHLIGHTS<br>4<br> • Experiential dining category leader with diversified growth engines<br> • Best-in-class operational execution and industry-leading retention<br> • Significant growth opportunities driving one of the highest expected growth rates<br>in the casual dining industry<br> • Differentiation and strong foothold in the off-premise channel | |||
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| CAKE AT A GLANCE<br>5<br>(1) Market data as of April 1, 2025.<br>(2) Represents fiscal year 2024 revenue for the twelve months ended December 31, 2024.<br>(3) Locations as of April 30, 2025.<br>We own and operate 358 restaurants(3) across<br>the US and Canada including:<br> • 215 The Cheesecake Factory locations<br> • 45 North Italia locations<br> • 40 Flower Child locations<br> • 51 Fox Restaurant Concepts locations<br>Our nearly 48,000 staff members<br>recently helped us become one of the<br>Fortune “100 Best Companies to Work<br>For®” for the 12th consecutive year<br>33<br>International<br>CCF Locations<br>China<br>Thailand<br>Mexico<br>Bahrain<br>Kuwait<br>Saudi Arabia<br>Qatar | UAE<br>FOUNDED<br>1972<br>IPO<br>1992<br>TICKER<br>CAKE<br>REVENUE(2)<br>$3.6B<br>HEADQUARTERS<br>CALABASAS HILLS, CA<br>MARKET CAP(1)<br>$2.5B<br>PORTFOLIO OF EXPERIENTIAL DINING CONCEPTS | ||
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| GLOBAL FOOTPRINT<br>7<br>Company-Owned: 215<br>(Including Toronto, Canada)<br>Latin America<br> Mexico City (5)<br> Monterrey (1)<br> Guadalajara (1)<br>Querétaro (1)<br>Asia<br> Shanghai (3)<br> Beijing (1)<br>Chengdu (1)<br>Hong Kong (1)<br> Macau (1)<br>Thailand (1)<br>Middle East<br> UAE (6)<br> Saudi Arabia (4)<br> Kuwait (3)<br> Qatar (3)<br> Bahrain (1)<br>International – Licensed: 33<br>Opportunity for 300<br>Domestic Locations<br>Long runway for growth as<br>we continue to open in new<br>and existing markets<br>Continued International<br>Expansion<br>In existing and new markets with<br>current licensees and evaluating<br>new markets<br>High-quality, High-profile<br>Locations Worldwide<br>Strong presence in premier<br>markets with attractive consumer<br>demographics | |||
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| 8<br>High-Energy Atmosphere<br>Contemporary Décor<br>Distinct, High-Quality<br>Cheesecakes and Desserts<br>Best-in-Class Execution<br>Exceptional Service<br>Menu Breadth and Innovation<br>Made Fresh From Scratch<br>MENU OPERATIONS AMBIANCE BAKERY<br>A HIGHLY DIFFERENTIATED CONCEPT | |||
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| 9<br>INTEGRATED BAKERY – THE “CHEESECAKE” MAGIC<br>Enables creativity, quality control and<br>supply chain efficiencies<br>57 Varieties of<br>cheesecakes & 2 desserts<br>Bakery<br>production<br>facilities<br>17%<br>FY 2024(1)<br>1<br>FY 2019<br>6%<br>(1)<br>(1) Percent of total sales.<br>Impressive Level of Dessert Sales | |||
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| BEST-IN-CLASS STAFFING AND OPERATIONS<br>10<br>Well-positioned to attract and retain high-quality, experienced staff as<br>an employer of choice<br> • Top-tier recruiting and training programs<br> • Fortune ‘100 Best Companies to Work For®’ List for 12 consecutive years<br> • Competitive compensation, benefits and healthcare options<br> • High sales volume restaurants provide predictability and stability for staff<br>Average Tenure by Position<br>36 years<br>28 years<br>24 years<br>23 years<br>16 years<br>15 years<br>Executive VP of Operations<br>Regional Vice Presidents<br>Area Directors of Operations<br>Area Kitchen Operations Managers<br>General Managers<br>Executive Kitchen Managers<br>EXCEPTIONAL SERVICE AND OPERATIONAL EXECUTION SUPPORTED BY INDUSTRY-LEADING RETENTION<br>2024 PEOPLE Companies that Care logo © 2024 TI Gotham, Inc., a Dotdash Meredith company. Used under license.<br>From Fortune. ©2025 Fortune Media IP Limited. All rights reserved. Used under license. Fortune® and Fortune 100 Best Companies to Work For® are registered trademarks of Fortune Media IP<br>Limited and are used under license. Fortune and Fortune Media IP Limited are not affiliated with, and do not endorse products or services of, The Cheesecake Factory Incorporated. | |||
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| DIFFERENTIATION IN OFF-PREMISE<br>11<br> • Extensive menu with over 225 items made from scratch daily<br> • Large portions designed for sharing<br> • Lower incremental delivery pricing versus peers<br> • Fully integrated systems for better execution<br> • Separate bakery counter and register for pick-up of orders<br>Exceptional Value<br>Operational Execution<br> • Omni channel ordering – Online | Delivery | Phone | In-person<br> • Curbside delivery, geo-location and real-time tracking<br> • Redesigned to-go packaging to improve food quality<br>Guest Experience and Convenience<br>11% 16%<br>25% 22% 21% 22%<br>OFF-PREMISE SALES % OF TOTAL REVENUE<br>OFF-PREMISE AWS FOR FY 2024(2)<br>$50.0<br>$24.9<br>$23.7<br>$20.3<br>$19.9<br>$19.5<br>$18.4<br>$15.5<br>$13.2<br>$13.1<br>Olive Garden<br>Carrabba's<br>BJ's<br>Texas Roadhouse<br>Outback<br>Chili's<br>Cracker Barrel<br>LongHorn<br>Red Robin<br>(1) $2.8 million in off-premise sales per restaurant based on annualized 1Q25.<br>(2) Company reports and Gordon Haskett Research Advisors.<br>($ in thousands)<br>$2.8 million per restaurant (1)<br><br>LEVERAGING OUR DIFFERENTIATED POSITIONING TO<br>DRIVE THE HIGHEST OFF-PREMISE AVERAGE WEEKLY SALES |
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| 12<br>ICONIC<br>BRAND<br>AND<br>CULT<br>STATUS | |||
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| Followers(1) (in thousands)<br>Followers / $M Sales(2)<br>Followers / $M Sales Instagram Followers<br>0 200 400 600 800 1,000 1,200<br>CAKE<br>Maggiano's<br>Outback<br>Bonefish<br>YardHouse<br>Olive Garden<br>Chili's<br>Cracker Barrel<br>BJ's Restaurants<br>Carrabba's<br>LongHorn<br>Texas Roadhouse<br> - 75 150 225 300 375 450<br>CAKE<br>Maggiano's<br>Outback<br>Bonefish<br>YardHouse<br>Olive Garden<br>Chili's<br>Cracker Barrel<br>BJ's Restaurants<br>Carrabba's<br>LongHorn<br>Texas Roadhouse<br>13<br>STRONG<br>CONSUMER<br>ENGAGEMENT<br>CAKE has more Instagram followers<br>and significantly outpaces peers in<br>followers relative to sales<br>Leveraging the STRENGTH OF<br>OUR BRAND across social media<br>channels to ENGAGE WITH OUR<br>CONSUMERS and further<br>ENHANCE BRAND AWARENESS<br>MILLIONS OF FOLLOWERS<br>(1) Instagram Follower count as of April 17, 2025.<br>(2) Sales represent fiscal year 2024 revenue based on latest SEC 10-K filings and company presentations. | |||
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| BROAD APPEAL AND BRAND AFFINITY<br>14<br>Diverse<br>Appeal<br>Across a broad<br>demographic range<br>Extensive<br>Menu<br>Something for every taste,<br>every price point<br>Special<br>Occasions<br>Seen as a destination for<br>experiential dining<br>Signature<br>Desserts<br>High-quality cheesecakes<br>and desserts<br>Consumers (millennials in particular)<br>regularly rank the Cheesecake Factory<br>as one of the best chain restaurants,<br>as well as having the best<br>ambiance and the best quality food.<br>A chain restaurant triple threat if there<br>was ever one.<br>-Vox, December 24, 2022<br>Sources:<br>(1) The Cheesecake Factory Ranks No. 1 in Casual Dining Online Reputation Study, SOCi Marketing Study, FSR Magazine, December 12, 2023.<br>(2) Most-Beloved Restaurant Brands in America – Savanta’s Marketing Intelligence Platform BrandVue Eating Out, FSR Magazine, October 11, 2023. | |||
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| CHEESECAKE REWARDS®<br>15<br>PROGRAM<br>OBJECTIVE<br>A SURPRISE and DELIGHT program<br>To leverage data analytics to engage more effectively with<br>our guests and drive incremental sales while maintaining<br>our restaurant level margins<br>Published<br>Offers<br>To support<br>member<br>acquisition and<br>on-going<br>engagement<br>Offered to all<br>rewards members<br>Unpublished<br>Offers<br>To surprise and<br>delight our guests<br>and drive<br>incremental<br>member visits<br>Tailored rewards<br>offered to all members<br>Marketable<br>Offers<br>To leverage key<br>marketable<br>moments to drive<br>increased<br>engagement<br>Offered to all<br>rewards members<br>Opportunity to drive incremental traffic<br> ® | |||
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| $12.3 $9.8 $9.7 $8.5<br>$6.2 $5.6 $4.9 $4.0 $3.6 $3.6 $3.2<br>Maggiano's Yard<br>House<br>Texas<br>Roadhouse<br>BJ's Olive<br>Garden<br>LongHorn Outback Chili's Carrabba's Bonefish<br>With a Moderate Average Check(1)<br>Driving the Highest Unit Volumes in the Industry(1)<br>($ in millions)<br>$36 $36 $35 $31 $29 $28 $26 $23 $23 $23 $20<br>Maggiano's Bonefish Yard<br>House<br>Outback LongHorn Carraba's Texas<br>Roadhouse<br>Olive<br>Garden<br>BJ's Chili's<br>16 (1) Latest SEC 10-K filings and company presentations for FY 2024.<br>(2) Average check for The Cheesecake Factory defined as on-premise average check for FY 2024.<br>(2) | |||
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| 18<br> • Filling White Space for an On-Trend, Contemporary Italian Offering<br> • Menu features classic Italian favorites with a fresh twist from hand-tossed pizzas and<br>homemade pastas to crave-worthy appetizers, salads and seasonal entrees<br> • Unique menu items tailored to local markets<br> • All dishes handmade from scratch daily<br> • Serving lunch, dinner, weekend brunch & weekday happy hour<br> • Robust selection of wine, beer and craft cocktails driving ~25% alcohol mix<br> • Average check of mid $30s for lunch and mid $40s for dinner | |||
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| 19<br> • Potential for 200 domestic locations over time<br> • Currently have 45 locations in 14 states &<br>Washington D.C.<br> • Italian is one of the most popular ethnic cuisines<br>in the United States<br> • Targeting ~20% average annual unit growth<br> • Attractive return profile and sales growth<br>Comp Sales<br>1Q25 (vs. 1Q24): (1)%<br>FY ‘24 (vs. FY ‘23): 2% | |||
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| • Potential for 700 domestic locations over time<br> • A differentiated concept in the growing fast casual dining segment<br> • 40 locations in 13 states<br> • Targeting ~20% average annual unit growth<br> • A healthy, balanced dining experience with organic, gluten-free and vegan dishes<br> • All dishes handmade from scratch daily<br> • Menu features customizable bowls, wraps, salads, veggies and healthy proteins<br> • Attractive consumer demographic<br> • Significant off-premise volumes - averaging over 50% of sales(1)<br> • Separate take-out area for third-party delivery and take-out business<br>On a simple, soul-satisfying mission to spread positively delicious vibes and healthy food.<br>21 (1) As of 1Q25. | |||
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| FOX RESTAURANT CONCEPTS (FRC)<br>23<br>FRC HIGHLIGHTS<br> • Locations: 51<br> • Geographies 11 states<br> • FY 2024 Revenue(1) $300M<br>(1) Fiscal year 2024 revenue represents revenue for the twelve months ended December 31, 2024 and excludes revenue for Flower Child.<br>FRC serves as an incubator, innovating new food, dining and hospitality experiences<br>to create fresh, exciting concepts for the future<br>FRC’s experiential concepts are designed to deliver unique guest experiences across different<br>industry segments, occasions, square footage and geographies<br>Provides Diversification | Accretive Unit Growth Potential | Value Creation Opportunities<br> “Great hospitality, every time.”<br>- Sam Fox | |
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| Culinary forward. First class hospitality. Concepts like no other.<br>DIVERSIFYING OUR PORTFOLIO ACROSS<br>EXPERIENTIAL FOR GROWTH<br>24<br>National<br>Expansion<br>Boutique<br>Brands<br>Incubation<br>Stage<br>Testing<br>Growth<br>Global<br>Footprint | |||
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| 25<br>13 NEW RESTAURANTS<br>OPENED IN 2022<br>16 NEW RESTAURANTS<br>OPENED IN 2023<br>ACCELERATING UNIT GROWTH<br>23 NEW RESTAURANTS<br>OPENED IN 2024<br>BLANCO CULINARY<br>DROPOUT<br>AS MANY AS 25 NEW UNITS IN 2025 11 NROs YTD As of April 30, 2025<br>Tempe, AZ<br>THE<br>HENRY<br>Phoenix, AZ<br>FLOWER<br>CHILD<br>Houston, TX<br>Tempe, AZ<br>Indianapolis, IN<br>Southlake, TX<br>NORTH<br>ITALIA<br>Tempe, AZ<br>Birkdale, NC<br>Riverton, UT<br>Indianapolis, IN<br>Del Mar, CA | |||
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| FINANCIAL<br>PERFORMANCE | |||
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| 27<br>DRIVING STRONG SALES GROWTH<br>FY 2024<br>COMP SALES<br>AVERAGE WEEKLY SALES (2)<br>FY 2024<br>AVERAGE WEEKLY SALES<br>Q1 2025<br>COMP SALES<br>AVERAGE WEEKLY SALES (2)<br>Q1 2025<br>vs 2023<br>1.0%<br>2%<br>vs 2023<br>(4)%<br>vs 1Q24<br>1.0%<br>(1)%<br>vs 1Q24<br>(1)%<br>~$240,700<br>Equates to $12.5M<br>Annualized AUV(1)<br>~$148,900<br>Equates to $7.7M<br>Annualized AUV(1)<br>~$137,600<br>Equates to $7.2M<br>Annualized AUV(1)<br>(1) 1Q25 Average Unit Volumes (AUV) annualized based on average weekly sales.<br>(2) FRC excludes Flower Child. | |||
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| Q1 2025 HIGHLIGHTS(1)<br>28<br>Total Revenue<br>$927M<br>Up 4% from PY<br>Adj. Net Inc. Margin<br>4.9%<br>Up 90 bps from PY<br>Capital Allocation<br>(1) A reconciliation of Non-GAAP measures can be found in the appendix.<br>(2) Represents total company owned and operated restaurants across the US and Canada.<br>(3) Includes $130 million related to the common stock repurchase during the debt offering.<br>Adjusted EPS<br>$0.93<br>Up 27% from PY<br>$43M<br>CapEx<br>$12M<br>Dividends<br>Unit Growth<br>8 NROs<br>Restaurant Count(2)<br>355<br>Up 6% from 336<br>in PY<br>Adjusted EBITDA<br>$88M<br>Up 16% from PY<br>$141M<br>Repurchases(3)<br>Debt Offering<br>Issued<br>$575M<br>of 2.00%<br>Convertible Senior<br>Notes due 2030 | |||
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| DEBT REFINANCING<br>29<br> • On February 28th, issued $575M of 2.00% Convertible<br>Senior Notes due 2030<br> • Net interest expense is expected to increase by<br>approximately $1M to $1.5M; this impact has<br>been factored into FY 2025 guidance<br> • Deployed net proceeds of approximately $559M to:<br> • Repurchase Convertible Senior Notes due 2026<br> • Repurchase 2.4 million shares of common stock<br> • Pay down remaining balance on revolver<br>($ in Millions) Q4 2024 Q1 2025<br>Cash and cash equivalents $84.2 $135.4<br>Convertible senior notes due 2026 $345.0 $69.0<br>Convertible senior notes due 2030 -- $575.0<br>Drawn on revolver $110.0 $0.0<br>Total debt $455.0 $644.0<br>Net debt(1)(2) $370.8 $508.6<br>TTM Adjusted EBITDA(2) $328.6 $340.5<br>Net debt / TTM Adjusted EBITDA(1)(2) 1.1x 1.5x<br>HIGHLIGHTS<br>Increased<br>Liquidity<br>Attractive<br>Interest Rate<br>Maturity<br>Extension<br>Strengthens<br>Balance Sheet<br>(1) Net debt represents the total principal debt outstanding less cash and cash equivalents.<br>(2) A reconciliation of Non-GAAP measures can be found in the appendix. | |||
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| 2025 UNDERLYING KEY ASSUMPTIONS(1)<br>30<br>(1) Assumes no material operating or consumer disruptions as well as assumptions with respect to future decisions, which are subject to change. Actual results will vary and those<br>variations may be material.<br>(2) Future decisions to pay or to increase or decrease dividends or to repurchase shares are at the discretion of the Board and will be dependent on several factors.<br>Consolidated Sales Approximately $3.76 Billion<br>CCF AUVs Approximately $12.5 Million<br>Net Income Margin Targeting approximately 4.75% at the stated sales level<br>New Unit Growth<br>As many as 25 New Restaurant Openings<br> • 3-4 The Cheesecake Factory locations<br> • 6-7 North Italia locations<br> • 6-7 Flower Child locations<br> • 8-9 FRC restaurants<br>Capital Expenditure Approximately $190 Million - $210 Million<br>Dividend Program Q2 2025 dividend of $0.27 per share(2)<br>Share Repurchase Program Offset dilution from employee stock-based compensation<br>and support EPS(2) | |||
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| QUALITY GROWTH OPPORTUNITY<br>31<br>New Unit Growth Targets(1)(2)<br>Size(3) Sales per Sq Ft(3) Annual Unit<br>Growth<br>7,000 -10,000 ~$1,100 - $1,200 ~2% - 3%<br>6,000 -7,000 ~$1,200 - $1,300 ~20%<br>3,000 -4,000 ~$1,100 - $1,200 ~20%<br>3,500 -15,000 ~$1,100 ~10% - 15%<br>Diversified Portfolio<br>Differentiated experiential concepts<br>diversified across industry segment, price<br>point, cuisine, occasion and real estate<br>Value Creation Opportunities<br>Leveraging brand power, operational<br>excellence, scale, supply chain and real<br>estate development expertise<br>Attractive Growth Potential<br>Significant runway for future development<br>across portfolio of concepts to drive<br>accretive growth over time<br>(1) Illustrative example of new restaurant openings targeted size, sales per square foot and annual unit growth; Targets represent steady-state and typically are reached after 3 years of operations.<br>(2) Targets are forward-looking and are based upon assumptions that there are no material operating or consumer disruptions as well as assumptions with respect to future decisions, which are subject to change. Actual results<br>will vary and those variations may be material.<br>(3) Target size and sales per square foot are an average based on productive square feet defined as all interior square footage plus seasonally adjusted exterior patio square footage.<br>1% - 2%<br>Comparable Sales Growth<br>GROWTH OUTLOOK(2)<br>AVERAGE ANNUAL GROWTH TARGETS<br>7% - 8%<br>Top-line Revenue Growth | |||
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| MARKET POTENTIAL LARGE TAM RUNWAY<br>32<br># OF<br>LOCATIONS(1)<br>FY 2024<br>AUVS<br>$12.3M 215<br>$7.7M 45<br>$4.4M 40<br>MARKET<br>POTENTIAL<br>300<br>200<br>700<br>(1) Locations as of April 30, 2025.<br>~$3.1B<br>~$8.5B<br>FUTURE<br>REVENUE<br>OPPORTUNITY<br>REVENUE<br>GROWTH $5BPOTENTIAL<br>NOTABLE UPSIDE<br>POTENTIAL<br>FROM OTHER<br>GROWTH CONCEPTS FY 2024 | |||
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| HISTORY OF OUTPERFORMING THE INDUSTRY<br>2.5%<br>(27.4)%<br>3.3%<br>10.5%<br>13.9% 14.9%<br>1.4%<br>(24.0)%<br>(0.9)%<br>6.5%<br>10.3%<br>11.8%<br>Geographical<br>discrepancies in<br>dining restrictions &<br>reopening timelines<br>Knapp-Track Index<br>Comparable Sales - Historical(1),(2)<br>33<br>2019 2020 2021 2022 2023<br>Comparison to pre-pandemic sales (2019)<br>(1) 2020 results reflect the impact of the COVID-19 pandemic.<br>(2) Due to impact of COVID-19 pandemic on results 2021, 2022, 2023 and 2024 compare against 2019.<br>2024 | |||
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| FINANCIAL STRENGTH TO SUPPORT<br>GROWTH AND RETURNS(1)<br>34<br>$2.61<br>($1.49)<br>$2.13<br>$1.51<br>$2.69<br>$3.44<br>'19 '20 '21 '22 '23 '24<br>Capital Allocation Detail<br>$120<br>$(47)<br>$146<br>$50 $67<br>$107<br>'19 '20 '21 '22 '23 '24<br>$99 $50 $67 $112 $152 $160<br>$51<br>$4<br>$6<br>$63<br>$46 $18 $61<br>$16<br>$42<br>$53 $53<br>44,545<br>48,974<br>'19 '20 '21 '22 '23 '24<br>Capex / Investment Share Repurchases Dividends WASO<br>Adjusted Earnings/(Loss) Per Common Share Free Cash Flow<br>'20<br>(1) A reconciliation of Non-GAAP measures can be found in the appendix. 2020 results reflect the impact of the pandemic and the issuance of 200,000 shares of Series A Convertible Preferred<br>Stock. An explanation regarding accounting reclassifications for prior years can be found in the 10-K and 10-Q.<br>(2) 2019 Capex / Investment does not include the acquisition of North Italia and Fox Restaurant Concepts.<br>(2)<br>Adjusted EBITDA<br>'20<br>'20<br>$236<br>$8<br>$238<br>$202<br>$270<br>$329<br>'19 '20 '21 '22 '23 '24<br>($ in millions except per share data)<br>(2) | |||
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| APPENDIX | |||
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| 36<br>($ in thousands) Fiscal Year<br>2019 2020 2021 2022 2023 2024<br>Cash flow from operations $ 218,761 $ 2,908 $ 213,006 $ 161,926 $ 218,401 $ 268,325<br>Capital expenditures / investments 99,265 50,329 66,943 112,464 151,565 160,364<br>Free cash flow(1) $ 119,496 $ (47,421) $ 146,063 $ 49,462 $ 66,836 $ 107,961<br>(1) Free cash flow and Net debt may not add due to rounding.<br>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<br>present free cash flow, net debt, adjusted net income/(loss), adjusted diluted net income/(loss) per common share, adjusted net income margin and adjusted earnings before interest, tax,<br>depreciation and amortization (“EBITDA”), Trailing Twelve Months (“TTM”) adjusted EBITDA, and net debt to TTM adjusted EBITDA. The non-GAAP measurements are intended to<br>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<br>facilitate the comparison of past and present financial results. These non-GAAP measures may not be comparable to similarly-titled measures used by other companies and should not be<br>considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. We calculate these non-GAAP measures by eliminating from net income/(loss),<br>diluted net income/(loss) per common share, net income margin and EBITDA the impact of items we do not consider indicative of our ongoing operations. Additionally, EBITDA and adjusted<br>EBITDA exclude the impact of certain non-cash transactions. We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Our inclusion of these adjusted measures should not be construed as an indication that our future results will be unaffected by unusual or infrequent items. In the future,<br>we may incur expenses or generate income similar to the adjusted items.<br>NON-GAAP RECONCILIATIONS<br>Fiscal Quarter<br>($ in thousands) 4Q24 1Q25<br>Long-term debt $ 452,062 $ 627,306<br>Unamortized debt discounts and issuance costs 2,938 16,694<br>Face value of debt $ 455,000 $ 644,000<br>Cash and cash equivalents (84,176) (135,411)<br>Net debt(1) $ 370,824 $ 508,589 | |||
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| 37<br>(1) EBITDA and Adjusted EBITDA may not add due to rounding.<br>(2) A detailed breakdown of impairment of assets and lease termination expenses recorded can be found in the Selected Segment Information table in the 10-K and 10-Q.<br>(3) Represents changes in the fair value of the deferred consideration and contingent consideration and compensation liabilities related to the North Italia and FRC acquisition, as well as amortization of acquired definite-lived licensing agreements.<br>(4) Represents premium paid and acceleration of previously unamortized deferred financing costs as a result of partial redemption of our convertible senior notes due 2026.<br>(5) 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.<br>Fiscal Year Fiscal Quarter Trailing Twelve<br>Months (TTM)<br>2019 2020 2021 2022 2023 2024 1Q24 1Q25 4Q24 1Q25<br>Net income/(loss) $ 127,293 $(253,365) $ 72,373 $ 43,123 $ 101,351 $ 156,783 $ 33,191 $ 32,941 $ 156,783 $ 156,533<br>Depreciation and amortization expenses 88,133 91,415 89,654 92,380 93,136 101,450 24,756 26,082 101,450 102,776<br>Interest expense, net 3,209 10,543 11,625 7,488 10,160 10,107 2,778 2,328 10,107 9,657<br>Income tax expense/(benefit) 13,041 (102,671) (753) (10,231) (1,337) 14,264 4,341 1,542 14,264 11,465<br>EBITDA(1) $ 231,676 $(254,078) $ 172,899 $ 132,760 $ 203,310 $ 282,604 $ 65,066 $ 62,893 $ 282,604 $ 280,431<br>Impairment of assets and lease termination expenses(2) $ 18,247 $ 219,333 $ 18,139 $ 31,387 $ 29,464 $ 13,647 $ 2,083 $ 378 $ 13,647 $ 11,942<br>Loss on investment in unconsolidated affiliates 13,439 - - - - - - - - -<br>Gain on investment in unconsolidated affiliates (52,672) - - - - - - - - -<br>Acquisition-related costs 5,270 2,699 - - - - - - - -<br>Acquisition-related contingent consideration,<br>compensation and amortization expenses/(benefit)(3) 1,033 (3,872) 19,510 13,368 11,686 2,429 1,121 998 2,429 2,306<br>Loss on debt extinguishment(4) - - - - - - - 15,891 - 15,891<br>Stock-based compensation 19,373 21,350 22,988 24,426 25,781 29,962 7,649 7,581 29,962 29,894<br>COVID-19 related costs(5) - 22,963 4,917 - - - - - - -<br>Adjusted EBITDA(1) $ 236,366 $ 8,395 $ 238,453 $ 201,941 $ 270,241 $ 328,642 $ 75,919 $ 87,741 $ 328,642 $ 340,464<br>NON-GAAP RECONCILIATIONS | |||
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| NON-GAAP RECONCILIATIONS<br>38<br>($ in thousands, except per share data) Fiscal Year Fiscal Quarter<br>2019 2020 2021 2022 2023 2024 1Q24 1Q25<br>Net income/(loss)(1) $127,293 $(277,10) $49,131 $43,123 $101,351 $156,783 $33,191 $32,941<br>Impairment of assets and lease termination expenses(2) 18,247 219,333 18,139 31,387 29,464 13,647 2,083 378<br>Termination of Interest rate swap - - 2,354 - - - - -<br>Loss on investment in unconsolidated affiliates 13,439 - - - - - - -<br>Gain on investment in unconsolidated affiliates (52,672) - - - - - - -<br>Acquisition-related costs 5,270 2,699 - - - - - -<br>Acquisition-related contingent consideration, compensation and amortization expenses/(benefit)(3) 1,033 (3,872) 19,510 13,368 11,686 2,429 1,121 998<br>Dividends on Series A preferred stock - 13,485 18,661 - - - - -<br>Net income attributable to Series A preferred stock to apply if-converted method - - 4,581 - - - - -<br>Direct and incremental Series A preferred stock issuance costs - 10,257 - - - - - -<br>Assumed impact of potential conversion of Series A preferred stock into common stock - - - - - - - -<br>Loss on debt extinguishment(4) - - - - - - - 15,891<br>COVID-19 related costs (5) - 22,963 4,917 - - - - -<br>Uncertain tax positions - - 7,139 - - - - -<br>Tax effect of adjustments (6) 3,818 (62,692) (11,679) (11,637) (10,699) (4,180) (833) (4,489)<br>Adjusted net income/(loss) $116,428 $ (74,934) $112,73 $76,241 $ 131,802 $168,679 $35,562 $45,719<br>Revenues $891,223 $927,197<br>Adjusted net income margin 4.0% 4.9%<br>Diluted net income/(loss) per share $ 2.86 $ (6.32) $ 1.01 $ 0.86 $ 2.07 $ 3.20 $ 0.68 $ 0.67<br>Impairment of assets and lease termination expenses(2) 0.41 4.36 0.34 0.62 0.61 0.28 0.04 0.01<br>Termination of Interest rate swap - - 0.04 - - - - -<br>Loss on investment in unconsolidated affiliates 0.30 - - - - - - -<br>Gain on investment in unconsolidated affiliates (1.18) - - - - - - -<br>Acquisition-related costs 0.12 0.05 - - - - - -<br>Acquisition-related contingent consideration, compensation and amortization expenses/(benefit)(3) 0.02 (0.08) 0.37 0.27 0.24 0.05 0.02 0.02<br>Dividends on Series A preferred stock - 0.27 0.35 - - - - -<br>Net income attributable to Series A preferred stock to apply if-converted method - - 0.09 - - - - -<br>Direct and incremental Series A preferred stock issuance costs - 0.20 - - - - - -<br>Assumed impact of potential conversion of Series A preferred stock into common stock - 0.80 (0.08) - - - - -<br>Loss on debt extinguishment(4) - - - - - - - 0.32<br>COVID-19 related costs(5) - 0.46 0.09 - - - - -<br>Uncertain tax positions - - 0.13 - - - - -<br>Tax effect of adjustments(6) 0.09 (1.25) (0.22) (0.23) (0.22) (0.09) (0.02) (0.09)<br>Adjusted diluted net income/(loss) per share(7) $ 2.61 $ (1.49) $ 2.13 $ 1.51 $ 2.69 $ 3.44 $ 0.73 $ 0.93<br>(1) Net income presented for 2020 and 2021 includes adjustments related to Series A Preferred Stock.<br>(2) A detailed breakdown of impairment of assets and lease termination expenses recorded can be found in the Selected Segment Information table in the 10-K and 10-Q.<br>(3) Represents changes in the fair value of the deferred consideration and contingent consideration and compensation liabilities related to the North Italia and FRC acquisition, as well as amortization of acquired definite-lived licensing agreements.<br>(4) Represents premium paid and acceleration of previously unamortized deferred financing costs as a result of partial redemption of our convertible senior notes due 2026.<br>(5) 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.<br>(6) The tax effect assumes a tax rate based on the federal statutory rate and an estimated blended state tax rate.<br>(7) Adjusted diluted net income/(loss) per share may not add due to rounding. | |||
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