The Cheesecake Factory — Feb 13, 2025 release
Fiscal 2024 fourth-quarter results · 8-K Item 2.02 · Exhibit 99.1 · 0001104659-25-015185
Showing in the filing
Quarterly dividend
“$0.27 per share”
Period
No period stated
Measure
Declared action
Source
Prose
All guidance in this release · 8
New restaurant openings for FY2025
“as many as 25”
The Cheesecake Factory restaurant openings for FY2025
“as many as three to four”
Flower Child restaurant openings for FY2025
“six to seven”
North Italia restaurant openings for FY2025
“six to seven”
Flower Child locations for FY2025
“six to seven”
North Italia locations for FY2025
“six to seven”
FRC restaurant openings for FY2025
“as many as eight to nine”
Quarterly dividend
“$0.27 per share”
Exhibit 99.1 · full document
EXHIBIT 99.1
Exhibit 99.1
FOR
IMMEDIATE RELEASE
Contact:
Etienne Marcus
(818)
871-3000
investorrelations@thecheesecakefactory.com
THE CHEESECAKE
FACTORY REPORTS RESULTS FOR
FOURTH QUARTER
OF FISCAL 2024
CALABASAS
HILLS, Calif. – February 19, 2025 – The Cheesecake Factory Incorporated (NASDAQ: CAKE) today reported financial
results for the fourth quarter of fiscal 2024, which ended on December 31, 2024.
Total revenues
were $921.0 million in the fourth quarter of fiscal 2024 compared to $877.0 million in the fourth quarter of fiscal 2023. Net income
and diluted net income per share were $41.2 million and $0.83, respectively, in the fourth quarter of fiscal 2024.
The Company recorded
pre-tax net expense of $14.4 million related to impairment of assets and lease termination expense partially offset by Fox Restaurant
Concepts (“FRC”) acquisition-related income. Excluding the after-tax impact of these items, adjusted net income and adjusted
diluted net income per share for the fourth quarter of fiscal 2024 were $51.8 million and $1.04, 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 1.7% year-over-year in the fourth quarter of fiscal 2024.
“Our fourth
quarter performance capped off an excellent year, with solid revenue and earnings contributing to record annual revenue and substantially
improved profitability for 2024,” said David Overton, Chairman and Chief Executive Officer. “While our fourth quarter results
were led by the strength of The Cheesecake Factory restaurants, we delivered impressive performance across our portfolio of concepts.
Consumer demand for the distinct, high-quality dining experiences we provide our guests across our experiential concepts reinforces our
confidence in the long-term growth potential of our portfolio.”
“We continued
to capture market share, as demonstrated by the ongoing outperformance in comparable sales and traffic at The Cheesecake Factory restaurants
versus the broader casual dining industry. During the fourth quarter, we opened nine new restaurants to strong consumer demand, for a
total of 23 new openings for the year, surpassing our development expectations.”
“Our fourth
quarter and full-year results marked the achievement of our key financial and operational objectives, including comparable sales growth,
margin expansion and accelerating accretive unit growth. With these accomplishments as a foundation, we are confident in our ability
to continue delivering on our goals for 2025 and beyond. We remain focused on leveraging our scale, operational strengths and the appeal
of our differentiated concepts to drive long-term value to our shareholders in the years to come.”
26901
Malibu Hills Road, Calabasas Hills, CA 91301 ● Telephone (818) 871-3000
Development
During the fourth
quarter of fiscal 2024, the Company opened nine new restaurants, including three North Italia locations, two Flower Child locations,
two FRC restaurants and the relocation of two Cheesecake Factory restaurants. Subsequent to quarter-end, the Company opened five new
restaurants, including one North Italia location, two Flower Child locations and two FRC restaurants.
The Company now
expects 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
As of December 31,
2024, the Company had total available liquidity of $340.7 million, including a cash balance of $84.2 million and availability on its
revolving credit facility of $256.5 million. Total principal amount of debt outstanding was $455 million, including $345 million in principal
amount of 0.375% convertible senior notes due June 2026 and $110 million in principal amount drawn on the Company’s revolving
credit facility.
The Company repurchased
approximately 11,800 shares of its stock at a cost of $0.5 million in the fourth quarter of fiscal 2024. In addition, the Company’s
Board of Directors has declared a quarterly dividend of $0.27 per share to be paid on March 18, 2025, to shareholders of record
at the close of business on March 5, 2025.
Conference Call
and Webcast
The Company will
hold a conference call to review its results for the fourth quarter of fiscal 2024 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
352 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, 34 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 2024, we were named to the FORTUNE Magazine “100
Best Companies to Work For ® ” list for the eleventh consecutive year. To learn more, visit www.thecheesecakefactory.com ,
www.northitalia.com , www.iamaflowerchild.com and www.foxrc.com .
From Fortune. ©2024 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, digital strategies 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 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
52 Weeks Ended
52 Weeks Ended
December
31, 2024
January
2, 2024
December
31, 2024
January
2, 2024
Consolidated Statements of Income
Amount
Percent
of Revenues
Amount
Percent
of Revenues
Amount
Percent
of Revenues
Amount
Percent
of Revenues
Revenues
$ 920,963
100.0 %
$ 877,009
100.0 %
$ 3,581,699
100.0 %
$ 3,439,503
100.0 %
Costs and expenses:
Food and beverage costs
205,768
22.3 %
201,449
23.0 %
806,021
22.5 %
803,500
23.4 %
Labor expenses
315,231
34.2 %
308,555
35.2 %
1,264,382
35.3 %
1,227,895
35.7 %
Other operating costs and expenses
247,113
26.8 %
234,969
26.8 %
959,221
26.7 %
922,428
26.8 %
General and administrative expenses
57,783
6.3 %
54,683
6.2 %
228,737
6.4 %
217,449
6.3 %
Depreciation and amortization
expenses
26,435
2.9 %
24,012
2.7 %
101,450
2.8 %
93,136
2.7 %
Impairment of assets and lease
terminations expense
15,224
1.7 %
27,827
3.2 %
13,647
0.4 %
29,464
0.9 %
Acquisition-related contingent
consideration, compensation and amortization (income)/expenses
(858 )
(0.1 )%
7,796
0.9 %
2,429
0.1 %
11,686
0.3 %
Preopening costs
7,635
0.8 %
9,579
1.1 %
27,495
0.8 %
25,379
0.7 %
Total costs and expenses
874,331
94.9 %
868,870
99.1 %
3,403,382
95.0 %
3,330,937
96.8 %
Income from operations
46,632
5.1 %
8,139
0.9 %
178,317
5.0 %
108,566
3.2 %
Interest expense, net
(2,137 )
(0.2 )%
(2,937 )
(0.3 )%
(10,107 )
(0.3 )%
(10,160 )
(0.3 )%
Other income, net
841
0.0 %
454
0.0 %
2,837
0.1 %
1,608
0.0 %
Income before income taxes
45,336
4.9 %
5,656
0.6 %
171,047
4.8 %
100,014
2.9 %
Income tax provision/(benefit)
4,182
0.4 %
(7,025 )
(0.8 )%
14,264
0.4 %
(1,337 )
0.0 %
Net income
$ 41,154
4.5 %
$ 12,681
1.4 %
$ 156,783
4.4 %
$ 101,351
2.9 %
Basic net income per share
$ 0.86
$ 0.27
$ 3.28
$ 2.10
Basic weighted average shares outstanding
47,953
47,828
47,789
48,324
Diluted net income per share
$ 0.83
$ 0.26
$ 3.20
$ 2.07
Diluted weighted average shares outstanding
49,645
48,609
48,974
49,050
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 December 31, 2024
The Cheesecake
Factory
North
Other
restaurants
Italia
FRC
Other
Total
Revenues
$ 669,382
$ 81,309
$ 85,119
$ 85,153
$ 920,963
Costs and expenses:
Food and beverage costs
149,130
18,371
18,346
19,921
205,768
Labor expenses
221,494
29,559
29,941
34,237
315,231
Other operating costs and expenses
175,382
21,598
25,090
25,043
247,113
General and administrative expenses
-
-
-
57,783
57,783
Depreciation and amortization expenses
16,768
2,591
3,143
3,933
26,435
Impairment of assets and lease terminations expense
330
-
14,893
1
15,224
Acquisition-related contingent consideration, compensation and amortization (income)/expenses
-
-
315
(1,173 )
(858 )
Preopening costs
1,884
2,230
2,396
1,125
7,635
Total costs and expenses
564,988
74,349
94,124
140,870
874,331
Income/(loss) from operations
$ 104,394
$ 6,960
$ (9,005 )
$ (55,717 )
$ 46,632
For the 13 Weeks Ended January 2, 2024
The Cheesecake
Factory
North
Other
restaurants
Italia
FRC
Other
Total
Revenues
$ 658,445
$ 67,224
$ 70,913
$ 80,427
$ 877,009
Costs and expenses:
Food and beverage costs
152,401
16,206
15,769
17,073
201,449
Labor expenses
225,951
23,897
25,083
33,624
308,555
Other operating costs and expenses
173,781
18,285
19,335
23,568
234,969
General and administrative expenses
-
-
-
54,683
54,683
Depreciation and amortization expenses
16,251
1,694
2,289
3,778
24,012
Impairment of assets and lease terminations expense
20,241
1,015
2,527
4,044
27,827
Acquisition-related contingent consideration, compensation and amortization expenses
-
-
316
7,480
7,796
Preopening costs
4,457
2,926
1,998
198
9,579
Total costs and expenses
593,082
64,023
67,317
144,448
868,870
Income/(loss) from operations
$ 65,363
$ 3,201
$ 3,596
$ (64,021 )
$ 8,139
For the 52 Weeks Ended December 31, 2024
The Cheesecake
Factory
North
Other
restaurants
Italia
FRC
Other
Total
Revenues
$ 2,661,627
$ 299,575
$ 299,969
$ 320,528
$ 3,581,699
Costs and expenses:
Food and beverage costs
599,899
69,505
66,665
69,952
806,021
Labor expenses
913,560
111,082
108,377
131,363
1,264,382
Other operating costs and expenses
696,739
82,290
88,672
91,520
959,221
General and administrative expenses
-
-
-
228,737
228,737
Depreciation and amortization expenses
66,010
9,244
11,389
14,807
101,450
Impairment of assets and lease termination (income)/expenses
(1,402 )
-
14,893
156
13,647
Acquisition-related contingent consideration, compensation and amortization expenses
-
-
1,262
1,167
2,429
Preopening costs
7,499
7,409
9,206
3,381
27,495
Total costs and expenses
2,282,305
279,530
300,464
541,083
3,403,382
Income/(loss) from operations
$ 379,322
$ 20,045
$ (495 )
$ (220,555 )
$ 178,317
For the 52 Weeks Ended January 2, 2024
The Cheesecake
Factory
North
Other
restaurants
Italia
FRC
Other
Total
Revenues
$ 2,595,066
$ 258,878
$ 263,923
$ 321,636
$ 3,439,503
Costs and expenses:
Food and beverage costs
607,439
64,425
59,865
71,771
803,500
Labor expenses
907,579
93,540
93,840
132,936
1,227,895
Other operating costs and expenses
685,521
69,918
72,554
94,435
922,428
General and administrative expenses
-
-
-
217,449
217,449
Depreciation and amortization expenses
64,206
6,407
7,916
14,607
93,136
Impairment of assets and lease terminations expense
20,401
1,015
2,582
5,466
29,464
Acquisition-related contingent consideration, compensation and amortization expenses
-
-
1,262
10,424
11,686
Preopening costs
12,857
5,058
6,482
982
25,379
Total costs and expenses
2,298,003
240,363
244,501
548,070
3,330,937
Income/(loss) from operations
$ 297,063
$ 18,515
$ 19,422
$ (226,434 )
$ 108,566
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
52 Weeks Ended
52 Weeks Ended
The Cheesecake Factory restaurants operating information:
December 31, 2024
January 2, 2024
December 31, 2024
January 2, 2024
Comparable restaurant sales vs. prior year
1.7 %
2.5 %
1.0 %
3.0 %
Restaurants opened during period
2
3
3
6
Restaurants open at period-end
215
216
215
216
Restaurant operating weeks
2,795
2,783
11,214
11,010
North Italia operating information:
Comparable restaurant sales vs. prior year
1 %
7 %
2 %
8 %
Restaurants opened during period
3
3
6
3
Restaurants open at period-end
42
36
42
36
Restaurant operating weeks
535
442
2,021
1,729
Other Fox Restaurant Concepts (FRC) operating information: (1)
Restaurants opened during period
2
3
8
6
Restaurants open at period-end
48
40
48
40
Restaurant operating weeks
611
512
2,264
1,906
Other operating information: (2)
Restaurants opened during period
2
-
6
1
Restaurants open at period-end
43
39
43
39
Restaurant operating weeks
551
519
2,114
2,074
Number of company-owned restaurants:
The Cheesecake Factory
215
North Italia
42
Other FRC
48
Other
43
Total
348
Number of international-licensed restaurants:
The Cheesecake Factory
34
(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
December 31, 2024
January 2, 2024
Cash and cash equivalents
$ 84,176
$ 56,290
Long-term
debt, net of issuance costs (1)
452,062
470,047
(1) Includes
$342.1 million net balance of 0.375% convertible senior notes due 2026 (principal amount of $345 million less $2.9 million in unamortized
issuance costs) and $110 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 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
52 Weeks Ended
52 Weeks Ended
December
31, 2024
January 2,
2024
December
31, 2024
January 2,
2024
Net income (GAAP)
$ 41,154
$ 12,681
$ 156,783
$ 101,351
Impairment
of assets and lease termination expenses (1)
15,224
27,827
13,647
29,464
Acquisition-related
contingent consideration, compensation and amortization (income)/expenses (2)
(858 )
7,796
2,429
11,686
Tax
effect of adjustments (3)
(3,735 )
(9,262 )
(4,180 )
(10,699 )
Adjusted net income (non-GAAP)
$ 51,785
$ 39,042
$ 168,679
$ 131,802
Diluted net income/(loss) per share (GAAP)
$ 0.83
$ 0.26
$ 3.20
$ 2.07
Impairment
of assets and lease termination expenses (1)
0.31
0.57
0.28
0.61
Acquisition-related
contingent consideration, compensation and amortization (income)/expenses (2)
(0.02 )
0.16
0.05
0.24
Tax
effect of adjustments (3)
(0.08 )
(0.19 )
(0.09 )
(0.22 )
Adjusted diluted net income per share (non-GAAP) (4)
$ 1.04
$ 0.80
$ 3.44
$ 2.69
(1) A
detailed breakdown of impairment of assets and lease termination expenses recorded in the thirteen and fifty-two weeks ended December 31,
2024 and January 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) 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 2024 and 2023 periods.
(4) Adjusted
net income per share may not add due to rounding.
26901
Malibu Hills Road, Calabasas Hills, CA 91301 ● Telephone (818) 871-3000
the item shown at left
other guidance in this release
Text is the filed exhibit, verbatim.