Summary of Cheesecake Factory 10k 2023

• NASDAQ: CAKE
• Started in 1972. Incorporated in Delaware in 1992. 
• Owns/operates 334 locations throughout US and Canada. 
• Brands:
• Cheesecake Factory 
  • 216 locations
  • Offers additional items for weekend brunch
  • Offers full service bar. Alcohol % of sales:  11%
  • Off premise sales:    22%
  • Dessert % of sales:  17%
  • Average Check: $30.54
  • Average sales per location: $12.2 million
  • Average sales per sq ft: $1,132
  • Construction cost of: $1,100 per interior sq. ft. 
  • Staff: 1 General Manager, 1 Exec Kitchen Manager, 6-11 kitchen and front managers, ~150 hourly staff.  
    • GM and EKM has ~10 yr experience. 
    • All GM report to Area Director who reports to Regional Vice President of Restaurant Operations. 
    • All EKM report to Area Kitchen Operations Manager
  • Licensed Locations (1 Licensee in Kuwait, 1 in Mexico, 1 in Hong Kong): Total of 33 locations worldwide.  
• North Italia   
  • 37 locations
  • Italian upscale casual dining segment. 
  • Average Check: $33.60 for lunch,   $43.25
  • Alcohol sales: 24%
  • Average sales per loation: $7.8 million.
  • Average sales per sq ft: $1,200 per interior sq. ft.
  • Targets 6,000 to 7,000 sq. ft. 
  • Cost of pre opening: $0.6 mil to 0.8 mil. 
• Flower Child    
  • 32 locations
  • Fast casual dining. 
  • Average sales per location: $4.1 million
  • Average sales per sq ft: $1,100 per interior sq. ft. 
  • Targets average of 3,000 and 4,000 sq ft. 
  • Construction cost of: $700 per interior sq. ft. 
• Fox Restaurant Concepts  (FRC)   
  • 41 locations
  • Independent subsidiary based in Phoenix, AZ. 
  • Average sales per location: $6.5 million
  • Average sales per sq ft: $1,100 per interior sq. ft. 
  • Targets 3,500 to 15,000 sq ft. 
  • Construction cost of: $650 per interior sq. ft. 

• Bakery Operations:      
  • Two production facility: Calabasas Hills, CA and Rocky Mount, NC. 
  • In 2023, announced third: Charleston, IN. 
  • Large account customers are retail, supermarkets, food service distributors, food service operators, retailers and distributors. 
  • Sells baked goofs in ~15 international countries. 

• Human Capital:      
  • Employs 47,900 people with ~46250 in restaurants. Remainder in Corporate, FRC HQ, and bakery operations. 
  • Internal promotion for Cheesecake and North Italia was 41%. 
  • Cheesecake and North Italia: 47% employee women. 

• Marketing/Advertising:     
  • Cheesecake:
    • Historically have not paid significant paid national advertising through TV, radio or print. Or provide significant discount for on-premise. 
    • Uses more public relations with promotional events like perform cooking demonstration. 
    • International licensee: Marketing can involve, print, billboards, digital and radio.
  • North Italia and FRC:
    • Executes localized marketing programs like store-level marketing, public relations, in-store events, digital advertising, email programs and social media. 
    • Interior and exterior are used for brand engagement  and brand messaging. 
    • Provides minimal discounts. 

• Seasonality: No significant seasonality. 
• Execs: Older aged execs than many other similar brands. CEO is founder. (CEO is 70’s, most execs in 50’s)

• Properties:
  • All restaurant locations are leased by company (including FRC’s HQ in AZ). 
  • All owned by company:
    • HQ: Calabasas Hills, CA (88,000 sq. ft of main facility and 19,000 sq. ft of training facility) in ~5 acre facility. 
    • Development and design department: 29,000 sq. ft in Irvine, CA
    • Bakery Production:
      • Calabasas Hills, CA: 60,000 sq. ft on ~3 acre land. 
      • Rocky Mount, NC:   100,000 sq. ft on ~31 acre land. 
      • Announced third one in Charleston, IN
• Credit Facility:

• $400 mil, $50 mil of that can be used as letter of credit.