The Cheesecake Factory (CAKE) Morgan Stanley Global Consumer & Retail Conference summary

Current operating environment and outlook

• 2024 described as the most normal year since the pandemic, with flat and predictable traffic and stable input costs and labor environment.

• Wage growth has outpaced inflation, improving consumer affordability and providing positive tailwinds into 2025.

• Guidance assumes recent trends will continue into Q4 2024 and 2025.

• Holiday sales expected to remain stable, with no significant shifts anticipated.

• Demand is expected to accelerate in 2025 due to robust job market and lower interest rates.

Key sales drivers and brand initiatives

• Rewards program, focused on reservations and personalized promotions, is driving incremental sales and guest engagement.

• High guest satisfaction, as measured by record NPS scores, is linked to labor stability and operational execution.

• Off-premise sales remain stable at 21% of mix, with 40% of that from DoorDash delivery, which integrates the rewards program.

• Value proposition maintained through large portions, broad menu, and competitive pricing.

• Experiential dining and ability to host large parties continue to attract both frequent and aspirational guests.

Brand growth and development plans

• North Italia expected to reach up to 200 domestic units, with new locations ramping over time.

• Flower Child could surpass 200 units, showing strong performance in new markets and high AUVs ($4.2–$4.4M).

• Culinary Dropout targeted for up to 100 units, with AUVs around $10M.

• Development pipeline benefits from portfolio strength, allowing for co-located concepts and landlord enthusiasm.

• 7% unit growth targeted for next year, with similar brand mix as this year: 3–5 Cheesecake Factory, 7–8 each for Flower Child and North Italia.